Apple gets its groove on with $3 billion Beats deal

By | May 28, 2014

Scalper1 News

Apple late Wednesday confirmed that it is buying high-end headphone maker Beats Electronics and subscription streaming-music service Beats Music for $3 billion, sealing its largest acquisition ever. Apple (AAPL) executives confirmed the deal in an interview with the New York Times, three weeks after news of the acquisition first leaked out. It later issued a press release announcing the purchase. As part of the acquisition, Beats co-founders Jimmy Iovine and Andre “Dr. Dre” Young will join Apple. Their roles weren’t disclosed in the press release, but the New York Times said they will work under Eddy Cue, Apple’s senior vice president of Internet software and services. Apple is paying for the deal in cash with $2.6 billion upfront and $400 million that will vest over time. Apple did not say if it is buying Beats with domestic or overseas cash. Beats established tax residency in Ireland, which has lower corporate taxes, in 2012.   Scalper1 News

Scalper1 News