Apple acquires Beats (music headphones/streaming service)
Companies in Relationship
Initial Announcement Date:
Consideration: 2.6 billion in cash and $400 million in Apple stock that will vest over an unspecified time period (Source: Apple press release)
Apple acquires Beats Electronics (Beats), which develops and markets premium consumer headphones, earphones, and speakers as well as Beats Audio software technology and Beats Music streaming music subscription service.
Downloaded music sales on iTunes are drifting downwards, and streaming appeared to be the future. Not wanting to cannibalize music downloads on iTunes, Apple has been late to streaming. Coupling iTunes Radio with Beatsí streaming service could help Apple compete with streaming leaders such as Pandora or Spotify.
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