CUPERTINO (dpa-AFX) - Apple (AAPL) announced it has agreed to acquire the critically acclaimed subscription streaming music service Beats Music, and Beats Electronics for a total of $3 billion, consisting of a purchase price of about $2.6 billion and approximately $400 million that will vest over time.
Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.
Apple said as part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple.
The company noted that Iovine has been at the forefront of innovation in the music industry for decades, and he has been an instrumental partner for Apple and iTunes for more than a decade. Iovine and Dr. Dre are sound pioneers, artists and entrepreneurs.
Beats Electronics has brought the energy, emotion and excitement of playback in the recording studio back to the listening experience and has introduced an entirely new generation to premium sound entertainment. Beats Music was developed by a team of people who have each spent their entire career in music and provides music fans with an incredible curated listening experience.
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