Apple’s $3 billion acquisition deal with Beats has officially closed.
The deal closed very quickly–no surprise here. On Monday this past week the European Commission approved the deal, stating that “the deal creates no ‘competition concerns because the combined market share of Apple and Beats Electronics is low’ in the audio market.” On its website, the company posted a welcoming announcement of the completed acquisition. Apple wrote:
Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family. 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.
Though the post enclosed no details of what Apple is planning for Beats, sources say that Beats’ streaming-music service, Beats Music, attracted the tech giant and encouraged the company to acquire Beats. Apple is interested in Beats’ headphones business, but the company may be planning to incorporate Beats Music into its product lineup or using the service in some other way to its advantage.
What is certain is the job cuts. There will be as many as 200 layoffs due to the merger, all in areas such as finances and human resources–roles in Beats that overlap with positions at Apple. Those with creative jobs–designers and the like–will stay on at Apple.
