Apple acquires Beats for $3 billion dollars. Beats was founded by Dr Dre and music producer Jimmy Lovine in 2008. It began as a headphone company, however just recently Beats announced their subscription based music streaming service.
Beats Music got only 110,000 subscribers while Spotify has 10 million subscribers. Its still unclear why Apple decided to buy Beats. Just last year Apple introduced iTunes Radio, which is a streaming service just like Spotify but it is free of cost and only iOS/Apple oriented.
Is it because they want to do something with iWatch? Are they planning on making a whole new wearable technology?
We don't have any answers to these questions yet and only time will tell what happens. As for now, a famous headphone manufacturing company with not so high quality headphones have been acquired by Apple.
Apple said that they will pay the initial $2.6 Billion dollar, and $400 Million will be paid gradually.
Its still unclear if we are going to see any product or any mention of Beats in next week's WWDC event. However, with iWatch production about to begin, we will be able to see the reason behind this deal by the end of 2014.
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