After nearly three weeks of waiting and speculation, Apple has officially announced the acquisition of Beats Electronics and Beats Music in a $3 billion deal.
Beats founders -- Interscope-Geffen-A&M chairman Jimmy Iovine and hip-hop producer Dr. Dre -- will be joining Apple in executive roles not specified in the announcement. Billboard previously reported the likelihood of Iovine and Dre being made part of the Apple executive team at next week’s Worldwide Developers’ Conference in San Francisco.
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. The deal is expected to close by Sept. 30, the end of Apple’s fiscal fourth quarter.
Notably, the companies' press release leads with the purchase of the fledgling Beats Music streaming service -- the much larger, more established Beats Electronics is listed second.
According to a memo put out by Apple CEO Tim Cook and posted on the Verge, the tech company plans to bring over at least part of the Beats staff. "Beats co-founders and music industry pioneers Jimmy Iovine and Dr. Dre will join Apple, along with their team of employees," Cook wrote. He also said that the Beats team will report directly to Eddy Cue, Apple’s senior vice president of Internet software and services.
“I’ve always known in my heart that Beats belonged with Apple,” Iovine said in a statement. “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.”