Just about three weeks ago, news first broke of a potentially huge acquisition Apple was pursuing, with word that it would acquire headphone-maker and streaming service-provider Beats for $3.2 billion. While we first heard that confirmation was just a matter of days away, rumors of delays swiftly arrived, as plenty of opinions were offered about just what this buy could mean for Apple, as well as the future of Beats. Well, it took a while for Apple and Beats to iron our the details, but today the purchase goes official, with Apple snatching up both Beats Music and Beats Electronics for $3B.
That’s a couple hundred million less than initially rumored (some nice pocket change), but still a fantastic sum for Apple to spend on this investment. In both a public statement announcing the acquisition, as well as an internal letter from Tim Cook to current Apple employees, the company sings the praises of Beats, talking in particular about the role founder Jimmy Iovine has had in the growth of iTunes. Cook also talks about how the Beats Music subscription service will help extend “the emotional connection our customers have with music.”
Assuming no regulatory hiccups, Apple expects to close the deal sometime in the fourth quarter of the year.