Apple, as rumored, has purchased Beats. However, potentially due to some issues over secrecy, the deal is for $200 million less than it was rumored. Still, Apple has officially acquired Beats for $3 billion, which is still a substancial ammount, even as far as acquisitions go. The two cofounders, Dr. Dre and Jimmy Iovine will officially become employees of Apple. Apple will be getting both the Beats Music and Beats Electronics brands, meaning they now own the Beats music streaming service and the headphones and speakers Beats became known for. Will Beats be a good match with Apple?
Jimmy Iovine, cofounder and CEO of Beats thinks his company will fit in with the Apple culture very well, saying, “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”. Apple CEO Tim Cook thinks so too. Along with the official statement from Apple, Tim Cook stated that, “Music is such an important part of all of our lives and holds a special place within our hearts at Apple”. Beats and Apple may be more compatible than they initially seemed, both have a passion for music and bringing it to the public.
Now the question on everyone’s minds is, what will Apple do with Beats? Will they use the streaming service? Release speakers and headphones? Incorporate the tech into Apple products? Or did Apple buy the company for the expertise of Dre and Iovine? We may never find out, Apple tends to be secretive about this sort of thing. Apple has stated that the acquisition will allow Beats to reach more customers from all over the world, but beyond that, they haven’t stated other plans for the company.