iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Apple announced on May 28, 2014, that it had agreed to acquire Beats Electronics and Beats Music for $3 billion. The announced total comprised approximately $2.6 billion in purchase price and approximately $400 million that would vest over time. The announcement described a proposed deal awaiting regulatory approval—not a completed acquisition.
What Apple agreed to acquire
The agreement covered two distinct businesses: Beats Electronics, known for consumer audio products and audio software, and Beats Music, a subscription streaming service. Apple described the hardware business as making headphones, earphones, speakers and Beats Audio software; it characterized the streaming service as focused on personalization.
| Business | What Apple said it included |
|---|---|
| Beats Electronics | Headphones, earphones, speakers and audio software |
| Beats Music | A subscription streaming service emphasizing personalization |
Apple’s announcement said Beats Electronics was formally established in 2008. It also described the Beats Music programming team as having “over 300 years of combined experience”—Apple’s promotional characterization, not an independently measured statistic. Apple’s May 28, 2014 announcement gives the company’s account of the businesses.
Recommended Free Tools
How the $3 billion was divided
| Announced component | Amount | What it means |
|---|---|---|
| Total consideration | $3 billion | Apple’s announced total for Beats Music and Beats Electronics |
| Purchase price | Approximately $2.6 billion | The purchase-price component |
| Amount vesting over time | Approximately $400 million | A portion Apple said would vest over time |
These are the figures Apple announced in 2014; they describe the proposed transaction terms, not a current valuation or a recurring payment.
#1 Best Overall
- INCREDIBLE SOUND: Custom acoustic platform delivers rich, balanced audio for music, calls and everyday listening.
- LOSSLESS AUDIO SUPPORT: USB-C lossless audio and sound profiles optimize music quality across devices and environments. Additional option to use the 3.5 mm cable for a standard analog experience.
- ACTIVE NOISE CANCELLING (ANC): block distractions at work, on flights or during your daily commute. Or use Transparency mode to let the sounds of your environment mix in with your music.
- SEAMLESS WIRELESS CONNECTIVITY: One-touch pairing with Apple & Android for easy switching across devices.
- SPATIAL AUDIO IMMERSION: Personalized dynamic head tracking, 360-degree sound for movies, music and immersive everyday listening.
Why Jimmy Iovine and Dr. Dre were named
Apple identified Jimmy Iovine and Dr. Dre—whose given name is Andre Young—as Beats co-founders who would join Apple as part of the announced agreement. Their inclusion linked the deal not only to Beats’ products and streaming service but also to its founding leadership.
Apple’s stated reason for the deal
Apple CEO Tim Cook framed the agreement as continued investment in music and an opportunity to bring the teams together. He said: “Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” adding, “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.” This was Apple’s rationale for the deal, not evidence by itself of what its later strategic results would be.
Rank #2
- Custom acoustic architecture and updated drivers for powerful Beats sound.
- Personalized Spatial Audio with dynamic head tracking.
- Ultralight ergonomic design for all-day comfort. Flex-grip headband and ergonomically angled, adjustable ear cups for a stable fit.
- UltraPlush ear cushions are designed for comfort and durability.
- Up to 50 hours of battery life.
Was the acquisition complete when Apple announced it?
No. Apple announced that it had agreed to acquire the businesses, said regulatory approvals were still required and forecast a closing in its fiscal fourth quarter. The May 28 announcement establishes the agreement and its expected timing, but does not itself confirm the date the acquisition actually closed.
Quick Recap
Best Value
- Custom acoustic architecture and updated drivers for powerful Beats sound.
- Personalized Spatial Audio with dynamic head tracking.
- Ultralight ergonomic design for all-day comfort. Flex-grip headband and ergonomically angled, adjustable ear cups for a stable fit.
- UltraPlush ear cushions are designed for comfort and durability.
- Up to 50 hours of battery life.
Rank #4
- INCREDIBLE SOUND: Custom acoustic platform delivers rich, balanced audio for music, calls and everyday listening.
- LOSSLESS AUDIO SUPPORT: USB-C lossless audio and sound profiles optimize music quality across devices and environments. Additional option to use the 3.5 mm cable for a standard analog experience.
- ACTIVE NOISE CANCELLING (ANC): block distractions at work, on flights or during your daily commute. Or use Transparency mode to let the sounds of your environment mix in with your music.
- SEAMLESS WIRELESS CONNECTIVITY: One-touch pairing with Apple & Android for easy switching across devices.
- SPATIAL AUDIO IMMERSION: Personalized dynamic head tracking, 360-degree sound for movies, music and immersive everyday listening.
Rank #3
- Custom acoustic architecture and updated drivers for powerful Beats sound.
- Personalized Spatial Audio with dynamic head tracking.
- Ultralight ergonomic design for all-day comfort. Flex-grip headband and ergonomically angled, adjustable ear cups for a stable fit.
- UltraPlush ear cushions are designed for comfort and durability.
- Up to 50 hours of battery life.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
