It was announced on Wednesday that Apple has agreed to purchase the streaming music service Beats Music and Beats Electronics, according to Yahoo. The company makes Beats headphones, which are incredibly popular. The company was co-founded by Jimmy Iovine and Dr. Dre. They will join Apple as part of the deal. The two companies will be acquired for $3 billion, with a purchase price of $2.6 billion and $400 million that vests.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO. “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.”
Jimmy Iovine added, “I’ve always known in my heart that Beats belonged with Apple. The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”
Apple’s Senior Vice President of Internet Software and Services, Eddy Cue, said, “Music is such an important part of Apple’s DNA and always will be. 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.”