Apple Takes Beats Electronics at $3B: 10 Things to Know As Apple Buys Out Beats
Apple has finally confirmed the acquisition of the critically acclaimed subscription streaming music service, Beats Music and Beats Electronics.
Beats is known for developing headphones, speakers and audio software. Beats Co-founders Jimmy Iovine and Dr. Dre will be joining Apple once the acquisition is finalized.
When news broke worldwide many wondered what made Apple decide to buy the two companies for a total of $3 billion, which is considered the company's largest acquisition.
TechRadar highlights 10 things to know about Apple taking over Beats:
1. iTunes and iTunes Radio aren't going away.
Eddie Cue, Apple's VP of internet software and services, said consumers will have more options on iTunes with the acquisition as they will experience Apple-powered Beats music while iTunes Radio will be available as a free option.
2. Apple could have built a subscription music service.
Apple believes acquiring an established music service is better than building its own subscription. Tim Cook said Beats Music is "the first service to get it right." For a great music service, both believe that a strong editorial and curation team is required which Apple will continue to expand in these areas. With Beats, the iTunes lineup will be even better, extending the emotional connection between the customer and music.
3. Beats Music Android and Windows Phone Apps are sticking around.
Apple this time is not shutting down the Beats Music apps for Android and Windows Phone, while Beats maintains its independence.
4. Beats headphones are everywhere.
The overpriced and overrated Beats headphones and music products will be reaching to all consumers through Apple stores.
5. Dr. Dre and Jimmy Iovine are Apple employees.
Although there is no clear chit of their exact roles, co-founders of Beats will be stepping down from their ranks to work as full-time Apple employees.
6. It really is about acquiring talent.
Apple is proud to own Beats Electronics as it believes that Dre and Iovine are unique, rare and hard to find.
7. Apple's biggest buy ever.
Apple acquired Beats at $3 billion, which is its largest payment ever. This also showed the company is willing to spend to what it really wants.
8. Apple bought 27 companies in the previous year.
Apple is in its purchasing mode. From last year, it already has 27 companies in its pocket.
9. The deal isn't done yet.
Apple will close its deal by the end of the year once various regulatory bodies pass the purchase.
10. Apple finally catching up with the streaming times.
With the acquisition, Apple is moving away from its traditional process of anti-subscription and now it is heading to some real time music.