Apple has ended the speculation and confirmed its heavily rumoured acquisition of the headphones giant co-founded by hip-hop producer Dr Dre.
The iPhone maker will invest US$3 billion to acquire Beats Electronics, which makes the popular Beats headphones, speakers and audio software, as well as subscription streaming music service Beats Music.
The acquisition brings a raft of benefits to Apple. The addition of a market-leading headphone range to Apple's mobile devices offering has obvious synergies, but Beats Music is also an important addition as consumer increasingly move from downloads, such as iTunes, to subscription-based streaming services, such as market-leader Spotify.
Eddy Cue, Apple’s senior vice president of Internet Software and Services, said: "Music is such an important part of Apple’s DNA and always will be. The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.”
The deal also sees Beats co-founders Jimmy Iovine and Dr Dre join Apple, bringing the kind of music and pop culture know-how to a tech giant that flourished off the back of Steve Jobs' creative credentials.
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