Apple announces $3 bn deal to acquire Beats Music

iPhone maker Apple today announced its $3 billion deal to acquire subscription streaming music service Beats Music and Beats Electronics.

The American devices vendor, which is slated to bring out Apple iPhone 6 smartphone in September this year, will expand Beats music subscription service and Beats headphones, speakers and audio software to more markets through the Apple Online Store, Apple’s retail stores and select Apple Authorized Resellers. Currently, Beats is more popular in the U.S.

Beats co-founders Jimmy Iovine and Dre will join Apple, as part of the acquisition.

“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.”

Apple says the acquisition of Beats will assist the device vendor to spruce up its music offerings, from free streaming with iTunes Radio to subscription service in Beats.

Analyst say Apple want to focus on mobile content as part of its long term strategies.

In five years since launch, the Beats “b” has become the brand of choice in the music and sports worlds, and is the market leader in the premium headphone market, said Apple in a statement.

Beats does not share its revenue details.

Music superstars including Lady Gaga, Lil Wayne and Nicki Minaj have designed their own customized Beats headphones and speakers.

Fashion designers and street artists such as Alexander Wang, Futura and Snarkitecture collaborated on special limited products, while athletes including LeBron James, Serena Williams and Neymar use Beats as a critical part of their training and game day process.

TelecomLead News Team