Apple has confirmed that it is acquiring headphone maker Beats, as previously rumored. The Cupertino company deposits an amount of 3 billion dollars, converted about 2.2 billion euros.
Apple released the news via a press release. Beats founders Jimmy Iovine and rapper Dr. Dre, will work for Apple after the acquisition. The acquisition involves an amount of 3 billion dollars, converted approximately 2.2 billion euros, of which the largest part will be paid in cash. Apple expects the deal to close in the fourth quarter of this year.
According to Apple CEO Tim Cook, the Beats acquisition is an addition to his company’s music offering. However, no detailed plans were disclosed about what the Cupertino company wants to achieve with the acquisition. Beats is best known for its headphones and also released a music streaming service called Beats Music some time ago. This music streaming service would continue to exist after the acquisition as a separate service and not be integrated with Apple’s existing music offering.
Rumors of the takeover surfaced earlier this month. In a video, co-founder Dr. Dre at a party, calling himself “hip hop’s first billionaire,” referring to the amount due to him after Apple’s acquisition. The deal therefore comes as no surprise, but it is one of the largest in Apple’s history.
Apple CEOs Tim Cook and Eddy Cue pictured with Beats founders Dr. Dre and Jimmy Iovine.