cook cue dre iovine

After weeks of rumors and speculation, Apple confirmed that it has reached an agreement to acquire Beats Electronics this afternoon. The deal is worth $3 billion, split into a $2.6 billion payout and $400 million that will vest over time.

In the press release, Tim Cook said that ‘music is such an important part of all of our lives and holds a special place within our hearts at Apple.’ And he shared a similar sentiment in a memo he just emailed to the company’s employees…

9to5Mac’s Mark Gurman shares the memo:

Team,

This afternoon we announced that Apple is acquiring Beats Music and Beats Electronics, two fast-growing businesses which complement our product line and will help extend the Apple ecosystem in the future. Bringing our companies together paves the way for amazing developments which our customers will love.

Music is an important part of our lives and our culture. Music has the power to inspire us, to comfort us, and to send our emotions soaring. It brings people together and transcends the limits of spoken language.

Apple’s history in music began with selling Macs to musicians. That remains important to us today, but we also bring music to hundreds of millions of customers with iTunes, which is at the forefront of the digital music revolution. Music holds a special place in our hearts at Apple, and we know that we can make an even bigger contribution to something that is so important to our society. That’s why we have kept investing in music and why we’re bringing together these extraordinary teams — so we can continue to create the most innovative music products and services in the world.

Beats co-founders and music industry pioneers Jimmy Iovine and Dr. Dre will join Apple, along with their team of employees. Jimmy has been on the cutting edge of innovation in the music industry for decades, including as a key partner for Apple in the launch of the iTunes Music Store more than ten years ago. He has produced or collaborated with some of the most popular artists in history, and been an important contributor to the success of the iTunes Store.

Beats Music was built with deep respect for both artists and fans. We think it’s the first subscription service to really get it right. Both Apple and Beats believe that a great music service requires a strong editorial and curation team, and we will continue to expand what we do in those areas. The addition of Beats will make our incredible iTunes lineup even better, extending the emotional connection our customers have with music.

The Beats Music team will report to Eddy. The teams will be getting to know each other better in the weeks ahead, and we are very excited about the possibilities for the future.

Beats Electronics has become the brand of choice for headphones and speakers in both the music and sports world, just five years after its launch. They are among the most popular and highest-rated third-party products sold today in Apple’s retail and online stores. We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.

Please join me in welcoming Beats to Apple. I hope you are as excited as I am about this new chapter in our history.

Tim

Tim Cook says that the Beats Music team will report to Apple’s SVP of Internet Software and Services Eddy cue, and that the groups will spend the next few weeks getting to know each other better, as they prepare for an ‘exciting’ future.

  • I Didn’t Do It

    Damn.

  • Adrian

    I stick with Pandora free in the car & siruis XM.

  • Framboogle

    Finally, Apple’s first non-white exec!

    • Gróf Attila

      Why is it so important?
      Apple Is not going to get better just becuase they got an exec who is black?! It is about knowledge.

      • Antzboogie

        And both Dre and Lovine possess what you speak of, knowledge. Or else how are they making $$$ off of Beats you fail in that comment.

      • Gróf Attila

        I was saying the same thing!
        I doesnt matter that he is black, what matters is that is is talented in making a good business!

    • jack

      who gives a shit, you racist

      • Andrew Roth

        Lol the one supporting equality is the racist?

      • jack

        equality means treating people the same way, not differentiating skin color

    • Franklin Richards

      Race comes into this how?

  • Andrew Roth

    Lol it’d be funny if Tim’s iPhone auto corrected Beats to betas. :p

  • DIesel

    I for one think this is GREAT news. I still have my pair of Beats studio headphones from like 4 years ago and love them to this day. I feel they expanded into other product categories organically much like Apple giving their brand a solid reputation

    • Antzboogie

      Agreed.

  • Antzboogie

    This is great news seriously I Love It and the picture of them together. Im not sure about the subscription service, but for everything else yes!! Imagine Beats speakers built into the iPhone subpar speakers and your iPhone coming with Beats headphones. Can’t wait!!

  • Korden

    Anyone else notice Tim Cook clearly covering his wrist?

  • Korden

    Anyone else notice how Tim Cook is clearly covering his wrist

  • ✯Mike✯

    Mac with Beats integrated speakers? Talk about a fanboys dream.