Apple confirms its acquisition of Beats
It’s the takeover that has had everyone talking for the past few weeks and now Apple has finally confirmed that it will be taking over the headphone manufacturer and music-streaming service provider Beats Electronics.
The deal is reportedly Apple’s biggest acquisition costing them a total of $3bn and will see co-founders Dr Dre and Jimmy Lovine join the company. The move will not only see Beats’ popular brand of headphones fall under Apple’s influence but also its music service, which would easily integrate with iTunes and could also do with the support due to its lacklustre number of subscribers which currently stands at about 250,000. This will also help to bolster Apple’s iTunes which constantly faces more threat from the likes of Spotify and Pandora.
Apple has always been known for its development of new products in house rather than purchasing already established brands, which has bought the acquisition to question by some.
The deal has been reported to go through during Q4 of this financial year and will be paid with an initial instalment of $2.6bn with another $400m to be paid over the time.
Dre who recently claimed he would become “the first billionaire in hip-hop” may not have been lying afterall.