Apple confirms $3bn Beats buy in music services push

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Apple has acquired Beats Music and Beats Electronics for $3bn in a move widely believed to be an attempt by Apple to kick-start its efforts in the mobile streaming market to rival firms such as Spotify.

The final sum paid is less than expected, but is still good money. Apple said that it is handing over $2.6bn now, and holding on to $400m for a period of time.

Tim Cook, Apple chief executive, said he was pleased with the deal and that Apple and music have always been linked. Now that Beats co-founders Dr Dre and Jimmy Iovine have joined Apple that relationship is a lot closer.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Cook.

“That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

Beats was once part owned by HTC, but always belonged at Apple, according to Iovine.

“I’ve always known in my heart that Beats belonged with Apple,” he said. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”

Eddy Cue, Apple’s senior vice president of internet software and services, said that Beats will roll into the Apple proposition nicely, and that he is looking forward to its part in the Cupertino mix.

“Music is such an important part of Apple’s DNA and always will be,” he said. “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.”

However, while Apple and Beats have been talking up the deal, others have been more sceptical. Analyst Benedict Evans wrote on Twitter that it was hard to see a clear reason for the buy.

29 May 2014 | 9:30 am – Source:

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