Beats takeover is the biggest deal for Apple since the purchase of Steve Jobs’ NeXT for $400 million in 1997
Apple’s deal with Beats Electronics is finally official.
The two companies announced the takeover late Wednesday, after weeks of rumors and speculation. The official terms of the deal hold the takeover valued at $3 billion, $2.6 of which will be in cash while $400 million will be in stock vested at a later date. The deal includes all of Beats’ properties, including its music streaming business.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” CEO Tim Cook said in a statement. “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.”
A big question many had is what kind of role would Dr. Dre and Jimmy Iovine have at Apple. The answer is still not too clear, as a press release only states that the duo would be joining the company with the titles “Dre” and “Jimmy”.
But many are left wondering why exactly Apple made this play for Beats. While Google and Facebook are well-known for their mega takeovers, it just isn’t Apple’s style.
Speaking to Re/Code, Cook explained part of the rationale for the deal.
We could build about anything that you could dream of. But that’s not the question,” he said to the blog. “The thing that Beats provides us is a head start, and it provides us with incredible people, kindred spirits.”
The deal is set to close in the fourth quarter of the year, after it clears regulatory approval.
Now read how Monster Cable was beat by Dre through its own hubris and Dre’s Goliath like approach to business.