Apple buys Beats Electronics for US$3bn

Acquisition is the largest made by Apple

Apple has acquired headphones maker Beats Electronics for US$3 billion, in what is the company's largest-ever acquisition.

Beats makes a popular line of headphones and recently launched a streaming music service. The company was founded by music producer Jimmy Iovine and hip-hop artist Dr. Dre. As part of the acquisition, Iovine and Dr. Dre will join Apple.

The total value of the acquisition is US$3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time. The deal is expected to close in fiscal Q4, subject to regulatory approval.

The deal marks a major new content and hardware push for CEO Tim Cook. Apple was known to be wary of big acquisitions under his predecessor, the late Steve Jobs.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Cook in a statemement. “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.”

Eddy Cue, Apple’s senior vice-president of Internet Software and Services, added music would continued to be a core part of Apple's future.

“The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years," he stated.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

And signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Data has the power to build or burn brands

A brand can be severely wounded by use or misuse of any of its assets and you could say data has the greatest power of all to inflict damage.

Lucy Acheson

Head of data strategy and customer experience, LIDA

Totto and your inorganic future

At Cannes Lions this year we’ve been treated to many artificial intelligence (AI) insights. It’s one of the major discourses of our time.

Richard Brett

CEO, opr

Personas of one and the rise of ‘always there’ marketing

I’ve got some bad news. The ‘always on’ marketing approach that many companies have only just fully implemented is already out of date.

Nigel Roberts

Founding partner and strategy lead, Yell

thanks for sharing this post ....https://www.jigno.com/men/t...

Jigno shop

Freeview recruits Foxtel marketer as new head of marketing

Read more

This isn't new. Walmart in the UK (Asda) dropped loyalty cards over a decade ago because all research pointed to them not working. For ...

Fraser

Report: Australian consumers aren’t loyal to brands

Read more

I'm looking for the little golden books of fairy tales from when I was a child ( I tutor autistic kids and I'm disabled through Dv. I wan...

Ally forrester

David Jones aiming to be Australia's premier retail destination

Read more

The best design always features a minimalist approach to the use of color. Many designers are tempted to use many different colors but us...

Jose Salas

How email marketing automation is helping this Aussie electrical wholesaler enter the digital age

Read more

I read you post full. It's really good .

Yusuf

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Latest Podcast

More podcasts

Sign in