In case you have been living under a rock, Apple has officially announced Wednesday its interest in Beats Electronics for a cool $3 billion. Rumors had been surfacing for sometime but everything is now official. This makes apples largest purchase in company history. Read after the jump for more information about the deal.
Many speculated that all Apple wanted was the beats music service but Apple is acquiring both the headphone business and beats streaming music service. The deal still has to go through proper regulatory approvals and the company expects the deal to close sometime in September. The $3 billion deal is made up of $2.6 billion in cash and $400 million in stock value.
Tim Bradshaw, of the Financial Times, tweeted yesterday that the beats music apps for Android and Windows Phone will live on.
Beats Music will still be available on Android and Windows Phone after the deal, @Tim_Cook tells @FT. "It’s all about music." Story @FT soon
— Tim Bradshaw (@tim) May 28, 2014
It is great news and only makes sense for Apple to let the Beats Music application live on rival platforms. HP will still have the rights to license the Beats name on its products until sometime in 2015. This deal opens the door up for apple to be even more profitable than it already is. With Beats reportedly owning 27% of the headphone market and 57% of the "premium" market, there is little doubt Apple will come out on the bottom from this deal.
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