Now, it is official, after a few weeks of speculation, Apple has bought the audio giant Beat for 3$ billion. $00$ of which will be vested over time. This in record, is the largest purchases that Apple has made, ever. Although, now that just represent a small amount of Apple’s 160 billion dollars in the bank. Jimmy Iovine and Dr. Drew is very excited about their new product will be made by Apple, say: “Financially, I’m in a place I never dreamed of. Now I’m just ready to get started with the work.” Apple’s CEO, Tim Cook, assured die hard fans that the Beat brand will still be intact. Tim Cook also said that the two co-founder of Beat, Dr. Dre and Jimmy Iovine will start working with Apple in Silicon Valley.
The purchases, speculated by many was because of the fact that the Pay-per-tune system for iTunes is no longer compelling to consumers since there are other services like Spotify, Pandora, or even Nokia Mix Radio, have very cheap, to free music services.
However, many analysts think this is an overpaid when we put in consider that Beat Music had just over 111,000 in March. But with the headphone division earned over $1 billion in sales, that might just be the money Apple will use to invest in the streaming music division until it can make enough to support its own.
Source: USA Today
Via: Phone Arena