Beats Music & Beats Electronics to be acquired by Apple

Apple has almost acquired Beats including both the Beats Music and Beats Audio hardware. Dr. Dre (rapper) and Jimmy Iovine (music industry executive) founded this company as the one which provided streaming radio service. The negotiation on the deal started in the beginning of this month. At that time the deal was priced at $3.2 billion but now that has been cut down to $3 billion. In this, $400 million goes for the stock and remaining $2.6 billion in cash.

Image is for Representational Purpose Only – Source: PRNewser

Apple usually follows the trend of acquiring startups which most people don’t even know about but this Beats acquisition is definitely out of this track. The last large acquisition was of NeXT. You might now be speculating as to what Apple gets from Beats which is a very popular name in Bluetooth speakers, headphones and other audio peripherals. Apple does not come with its own stylized headphones or speakers and this is where the rivals like Samsung get an edge in the competition. Beats’ music streaming service was praised by Tim Cook (Apple CEO) in an interview.

Apple is being quite open about this deal when compared to the other acquisitions it made in the past and says that Beats will continue operating as it is doing now. According to the deal, the beats’ co – founders now would be the members of Apple’s management team. In just 5 years of Beats’ launch, it has become the trendsetter in the pop music culture. Well this acquisition is in keeping with the Apple’s love towards artists, musicians, songwriters and of course music fans!