Cupertino, Calif. — Apple will acquire Beats Electronics and the Beats Music music-streaming service for $3 billion.
The announcement, which has drawn scads of speculation since the Financial Times first leaked the potential news last month, was officially announced Wednesday. According to a statement by Beats, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple.
Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time, it said. The transaction is expected to close in the fourth quarter.
In a statement, Apple 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.”
Iovine said, “I’ve always known in my heart that Beats belonged with Apple. 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.”
TWICE inquiries to Beats on how the move will affect the rest of Beats personnel were unanswered as of this posting.