In a major shift in the industry today, it was been now official announced that Apple will be buying Beats Electronics for $3 Billion.
The two companies will aim to give consumers around the world more options to listen to music. The Beats brand will remain separate from Apple’s, and Apple will offer both Beats streaming music service and premium headphones. Apple, which sells music and offers a streaming radio service, would be offered alongside the Beats music service.
Dr. Dre and Jimmy Iovine will be working under Eddy Cue, Apple’s executive in charge of Internet services.
Says Jimmy Iovine:
“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.”
This news coincides with the development that John Janick will now be the chairman and CEO of Interscope Geffen A&M, replacing Jimmy Iovine. John has been working under Jimmy for past two years and will have the task of bringing the label back to the top in terms of market share.
Discussion about this post