Apple have confirmed that they have agreed a deal to purchase Beats Electronics.
In a press release the technology giant confirmed what had been previously speculated, also announcing that Beats founders Jimmy Iovine and Dr. Dre will join Apple. The cost of the deal will be $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.
Iovine and Apple CEO Tim Cook are quoted in the press release, with Iovine admitting he has “always known in my heart that Beats belonged with Apple”.” He continued; “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.”
“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.”
Apple say they hope to complete the transaction in fiscal Q4, subject to regulatory approvals.