Beats By Dr.Dre was acquired by Apple.

On Wednesday, local time, Apple announced that it had agreed to acquire BeatsMusic, a streaming music subscription service provider, and BeatsElectronics, a manufacturer of Beats headphones. The total consideration of this transaction is $3 billion, which is the largest transaction in Apple's history. Some insiders said that Apple's acquisition of Beats will increase the valuation of the headset industry. With the mapping effect of US stocks on A-shares, headset industry stocks are also expected to be boosted in the A-share market. BeatsElectronics was founded in 2008 by legendary artists and producers Dr.Dre and Interscopegeffena &. Co-founded by Ai Owen, chairman of MRecords, whose products include BeatsbyDr. Dre headphones and speakers, BeatsAudio patented software technology and streaming music subscription service BeatsMusic.

Apple said in the acquisition statement that the transaction will be paid in the form of $2.6 billion in cash and $400 million in assets, and it needs to be approved by the regulatory authorities before it can be carried out. Apple expects that the transaction will be completed before the end of September 2065438+2004 in its fourth fiscal quarter. After the acquisition, Beats co-founders Ai Owen and Dr.Dre will join Apple, but it is not clear what they will do after joining Apple.

It is understood that last autumn, Carlyle Investment Group invested about 500 million US dollars in Beats. At that time, Carlyle Investment Group valued the company at about $65.438 billion. 20 14 In early September, it was reported that Apple planned to acquire Beats for $3.2 billion. Consistent with iTunes services

Why did Apple spend a lot of money to buy a music service provider?

Apple CEO Cook explained in an open letter: "Music is an important part of everyone's life and occupies a special position in the heart of Apple, which is why we continue to invest in the music business. We will integrate these special teams and continue to create the most innovative music products and services in the world. "

Some insiders believe that Apple's iTunes business revenue has stopped growing, and the acquisition of Beats will help this part of the business to resume growth. And compared with Beats' professional headset products, Apple's own headphones are not good.

Yi Lee, secretary general of cmnet Industry Alliance, said that apart from hardware, Beats also provides music sharing service, which is consistent with Apple's iTunes service. If it can be well integrated, it can increase the value of both sides. Yi Lee speculated that the integration of Apple and Beats might be carried out in many aspects in the future. In addition to iTunes' integrated streaming service, Beats' most familiar headset products may also be sold in the Apple Store. Yi Lee told reporters that before this, HTC had acquired shares in Beats, but it was only a selling point of mobile phone products at that time, and deep integration was not enough. Coupled with the immature market environment and timing at that time, the cooperation between HTC and Beats was not successful.