Apple has agreed to acquire the streaming music service and headphones maker Beats. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple's creative team. Apple is acquiring the two companies Beats Music and Beats Electronics for a total USD 3 billion, including USD 2.6 billion upfront and USD 400 million when Beats meets future targets.
Beats Music will provide a boost to Apple's iTunes Radio service, enhancing the profile of the streaming music service and integrating with purchases on the iTunes store. Started three months ago, the streaming service has around 250,000 customers, Iovine said in an interview with Re/code. Following the takeover by Apple, the Beats headphones will be offered in more countries through the Apple Online Store, Apple's retail stores and resellers.
Beats previously had a partnership with HTC, but this was dissolved in 2012 when HTC sold back much of its stake in the company. In September 2013, HTC sold its last shares in Beats, and the company announced a new investment from Carlyle. Subject to regulatory approvals, Apple expects its takeover to close by September.
