After weeks of speculation that left many scratching their heads as to why they would be interested in buying Beats Audio–Apple finally pulled the trigger and announced this evening that they were acquiring both Beats Electronics and the Beats streaming music service for 3 billion dollars. Some in the Media speculated that negotiations had stalled and that Tim Cook was upset with a leaked video that portrayed a celebratory Dr Dre before an official announcement regarding the mega-deal had been made.
With the deal Jimmy Iovine, Dr Dre, and the Beats Music team will now report directly to Eddy Cue (pictured together with Cook above), and the Beats speaker and headphone division will be under the watchful eye of Phil Schiller. After the deal, Tim Cook addressed Apple employees in a company memo…
Beats Music was built with deep respect for both artists and fans. We think it’s the first subscription service to really get it right. Both Apple and Beats believe that a great music service requires a strong editorial and curation team, and we will continue to expand what we do in those areas. The addition of Beats will make our incredible iTunes lineup even better, extending the emotional connection our customers have with music.
…I hope you are as excited as I am about this new chapter in our history.
Stay tuned as this developing story becomes clearer, and more details are revealed.