29th May 2014
Apple is to buy premium headphone maker and subscription streaming music service Beats Electronics for $3bn (£1.8m), marking the iPhone makers biggest ever deal.
As part of the acquisition, which will be finalised by September, Beats co-founders music producer Jimmy Iovine and hip-hop star Dr. Dre will join the technology giant.
In a statement Apple’s CEO Tim Cook says: “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.”
Beats, best known for its unique headphones was set-up by Dre and Iovine in 2008, only launched its subscription-based music streaming service this year. Since the firm’s inception, music superstars including Lady Gaga, Lil Wayne and Nicki Minaj have designed their own customized Beats headphones and speakers
Commenting on the deal, Iovine says: “I’ve always known in my heart that Beats belonged with Apple,” said Jimmy 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.”
In Apple’s latest set of financial results, for the three months ended March 29, 2014, it posted quarterly revenue of $45.6bn and quarterly net profit of $10.2bn, up from revenue of $43.6bn and net profit of $9.5bn, in the same period a year earlier.