Music streaming service MOG has been acquired by Beats Electronics, the headphone and speaker company founded by rap legend Dr. Dre and Interscope-Geffen-A&M chairman Jimmy Iovine.
Buy is the first-ever acquisition by Beats, which will keep MOG’s employee structure and product offering intact. Financial terms of the long-rumored deal were not disclosed.
Founded in 2005 by former Gracenote CEO David Hyman, the Berkeley-based MOG has a catalog of more than 15 million songs. Initially started as a blog network, MOG added a subscription music service in 2009. After the Stateside launch of Swedish service Spotify in summer of 2011, MOG became the first U.S. subscription service to offer its own free tier.
Beats, which is majority owned by HTC Corp., became a household name largely through its Beats by Dre line, which has become nearly ubiquitous in the high-end headphone market.
“With MOG, we are adding the best music service to the Beats portfolio for the first truly end-to-end music experience,” said Beats president-COO Luke Wood. “With their talent and technology, the possibilities around future innovation are endless.”
Hyman will now officially become CEO of MOG, reporting to Wood. Boutique financial firm Mesa Global completed the transaction.