Apple Inc. to Buy Beats Music and Beats Electronics for $3B (AAPL)

After weeks of reports and speculation, Apple Inc. (AAPL) confirmed on Wednesday afternoon that it will be acquiring Beats Music and Beats Electronics.

Beats Music is a music streaming service, and Beat Electronics makes the “Beats by Dre” headphones, speakers, and audio software. The Beats company was co-founded by rapper, DJ, and producer Dr. Dre and music industry mogul Jimmy Iovine, who will both be joining Apple. Apple stated that the purchase price is $3 billion (lower than the rumored price of $3.2 billion), consisting of “$2.6 billion and $400 million that will vest over time.”

In Apple’s press release, Apple CEO Tim Cook gives the following comments on the deal: “Music is such an important part of all of our lives and holds a special place within our hearts at Apple. That's why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world."

The deal is expected to close in the fiscal fourth quarter.

Apple stock was up slightly in after hours trading, after finishing the day down $1.62, or 0.62%. YTD Apple stock is up 13.11%

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