Apple closes $3bn deal to acquire Beats Music

Apple makes Beats acquisition official

Apple has officially closed its $3bn acquisition of Beats Electronics and Beats Music.

Posting a page on its web site on Friday, the iPhone maker said the deal was officially closed but still left us in the dark as to what exactly Apple is planning to do with the audio firm.

“Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family,” the statement read. “Music has always held a special place in our hearts, and we’re thrilled to join forces with a group of people who love it as much as we do.”

With no word as to how Beats will integrate into Apple products, or if they will at all, the Cupertino firm said Beats cofounders Jimmy Lovine and Dr. Dre have “created beautiful products that have helped millions of people deepen their connection to music” and it will be working with the team to “elevate that experience” even further.

“And we can’t wait to hear what’s next,” the statement concluded.

Apple announced that it had laid down $3bn, about £1.78bn, to acquire Beats Music in May. While the company was interested in Beats’ core headphones business, it also said that the move was influenced by Beats Music, a streaming-music service that Apple is expected to integrate into its own product line-up, somehow.

The deal received clearing by the European Commission (EC) just this week when it said that since Apple and Beats already both sell headphones, and have a combined ‘low’ market share, it could not object on those grounds.

“The Commission concluded that the combination of the two businesses did not raise competition concerns because the combined market share of Apple and Beats Electronics is low,” it said.

Both Apple and Beats offer music services too, and again the EC could find no issues. It said that while Apple has competition in Europe in this area already, Beats, a relatively small provider, is not currently active locally. Nevertheless, we are stil left in the dark as to why the Apple has gone through with the deal and it’s difficult to see a clear reason for the buy. 

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2 August 2014 | 8:30 am – Source: v3.co.uk

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