Apple has confirmed it is to pay $3 billion (£1.76 billion) for Beats Audio. In an official statement, Apple said Beats’ founders Jimmy Iovine and Dr Dre will join the Cupertino company as part of the deal.
The move sees Apple take control of Beats’ lucrative headphones business.
But it’s arguably the Beats Music streaming platform that's the biggest draw for Apple, with Tim Cook and co clearly hoping it will help the company regain lost ground to the likes of Spotify and Pandora.
“The addition of Beats will make our music line-up even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services.
Iovine added: “Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”
However, falling sales on iTunes has clearly got Apple rattled. With consumers moving to streaming services, the tech giant needs to move quickly in order to ensure Beats Music is readily available on all of its iOS and OS X devices.
With WWDC due to start next week in San Francisco, expect to hear more about the Beats deal very soon. Chances are the Beats Music platform could wind up being a key part of iOS 8.