“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine

May 29, 2014 06:46 GMT  ·  By

Apple has formally announced plans to acquire Beats Electronics for $3 billion / €2.2 billion, which includes the popular Beats headphones, speakers, and audio software, as well as co-founders Jimmy Iovine and Dr. Dre, who will join Apple.

Confirming rumors that Apple had downplayed the acquisition price in recent days, the company has revealed in a press release that it is acquiring Beats Music and Beats Electronics for a total of $3 billion / €2.2 billion, “consisting of a purchase price of approximately $2.6 billion and approximately $400 million [€294 million] that will vest over time.”

Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as part of the acquisition, but it isn’t clear if the two are getting executive roles.

CEO Tim Cook said, “Music is such an important part of all of our lives and holds a special place within our hearts at Apple. That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

Many believe the primary driver in Apple’s decision to buy Beats was to nab Jimmy Iovine, a leader in the music industry who “has been an instrumental partner for Apple and iTunes for more than a decade.”

Not surprisingly, Iovine also believes the acquisition makes perfect sense: “I’ve always known in my heart that Beats belonged with Apple,” said Iovine. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”

Although the announcement touts Iovine and Dr. Dre as “sound pioneers, artists and entrepreneurs,” the press release is visibly empty of any praise for the hip-hopper, something that may have to do with his inappropriate video that confirmed the acquisition ahead of time.

Eddy Cue, Apple’s senior vice president of Internet Software and Services, is also quoted as saying that “Music is such an important part of Apple’s DNA and always will be. The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.”

The Cupertino giant also seems poised to capitalize on the Beats Music service that focuses on providing a personalized music experience. Apple expects the transaction to be finished in the fourth fiscal quarter of 2014.

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