Co-founders Dr. Dre and Jimmy Iovine will join Apple
Apple has formally completed the $3 billion (£1.78 billion) deal to acquire Beats Electronics and its streaming service Beats Music.
The deal was announced in May and came off the back of Beats announcing the streaming service which some commentators suggested could have eaten away at the revenues of iTunes and other established players such as Spotify.
“We love the subscription service that they built—we think it’s the first subscription service that really got it right,” Apple chief executive officer Tim Cook said at the time.
It is the largest purchase of another company in Apple’s history.
Beats, which was formed by hip-hop producer Dr Dre and Interscope Records chairman Jimmy Iovine in 2008, reportedly sells 64 per cent of US headphones priced at $100 and above. Both Dr. Dre and Iovine will join Apple as part of the deal.
In 2011, handset manufacturer HTC bought a 50 per cent stake in Beats for $309 million. A year later it sold half of that stake back to Beats for $150 and unloaded the other half back to the company last year for $265 million.
Beats has already announced on its website that all online purchasing will now go through the Apple Online Store.