In a statement released earlier this afternoon, Apple officially announced its acquisition of Beats By Dr. Dre for a total $3 billion, of which $2.6 billion will be cash up front and $400 million in stock. The purchase consists of Beats Music, its subscription-base streaming music service, as well as Beats Electronics, the maker of Beats headphones, speakers, and audio software.
First reported by the Financial Times , there were rumors of the deal in jeopardy, especially after Beats By Dr. Dre’s co-founder, hip-hop artist Andre Romelle Young (aka Dr. Dre), released an obscenity-loaded online video confirming the acquisition.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO. “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.”
“I’ve always known in my heart that Beats belonged with Apple,” added Jimmy Iovine, who co-founded Beats with Dr. Dre. “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.”