Today Apple has confirmed that they would be buying Beats Electronics, a music accessory brand known mainly for their headphones, in order to “give consumers more options to listen to music”. Apple uses iTunes as its main music distribution service, but they plan on integrating with Beats Music, a streaming service, and their premium headphones to create a more Apple-centric listening experience.
Acquiring Beats also brings the two founders of Beats, Jimmy Iovine, a longtime music executive and one of the founders of Beats, and Dr. Dre to work under Eddy Cue, Apple’s music executive in charge of Internet services.
Apple is paying $2.6 billion in cash and $400 million in stock. The deal is expected to be concluded later this year. This will be the largest deal that Apple has ever made.