Apple Completes $3 Billion Beats Deal

Apple Completes $3 Billion Beats Deal

Beats Electronics and Beats Music is now officially part of Apple.

In a “Welcome to the family” post on its website Friday, Apple said that the $3 billion has officially closed.

“Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family,” it wrote. “Music has always held a special place in our hearts, and we’re thrilled to join forces with a group of people who love it as much as we do. Beats cofounders Jimmy Iovine and Dr. Dre have created beautiful products that have helped millions of people deepen their connection to music. We’re delighted to be working with the team to elevate that experience even further.

“And we can’t wait to hear what’s next.”

Apple announced it would acquire Santa Monica, Calif.-based Beats for $2.6 billion in cash and $400 million in stock in May, a deal that would give it control of Beats’ popular headphone business, as well as the company’s new Beats Music streaming service.

But the acquisition already has led to cost cutting, with 200 staffers expected to be let go in positions that overlap with roles already in place at Apple. The cuts represent 29% of its 700-employee workforce.

Apple’s stock rose 53 cents to close out the week at $96.13.

 

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