Apple Inc. finally broke its silence and announced that they have met ground with Beats founder and famous rapper Dr. Dre and the deal has been sealed for $3 billion. As per the terms of the deal, we have already come to know the payment structure where $2.6B will be paid in cash, and the rest $400M in terms of equity.
This is the second biggest acquisition that Apple has ever made. The last being NexT which was undertaken to bring back ‘ Steve Jobs ’ back to Apple and to set it back on its rightful path of creativity( which has now been kinda lost!!? ) . CEO Tim Cook is satisfied with this deal and says that Beats will continue its operations independently providing music to all. He also reports that the Beats Music app wouldn’t be pulled out of the Android and Windows stores for good.
A lot of buzz and speculation has aired about this deal, about what benefit does Apple have by acquiring a radio streaming service, when they have their own ITunes service or from even the Beats Hardware division. As TechCrunch reports, Apple is influenced by the capability of the company to turn the free trial users to paid subscribers quite easily and they would now also have the expertise of Jimmy Iovine and Dr. Dre on the executive panel too.
So, why do you think Apple bought Beats Music? For their streaming service, or their hardware services for producing headphones and quality sound gear (a rather new market for them)?
Click here for the full story on the Beats Electronics blog!!