Following the official announcement regarding Apple’s $3 billion acquisition of Beats Electronics and Beats Music, Apple CEO Tim Cook has sent a letter to employees regarding the deal. Cook goes through Apple’s focus on music throughout its history, how Apple and Beats will be structured upon the closing of the deal later this year, and why this acquisition is important.
Apple’s history in music began with selling Macs to musicians. That remains important to us today, but we also bring music to hundreds of millions of customers with iTunes, which is at the forefront of the digital music revolution. Music holds a special place in our hearts at Apple, and we know that we can make an even bigger contribution to something that is so important to our society. That’s why we have kept investing in music and why we’re bringing together these extraordinary teams — so we can continue to create the most innovative music products and services in the world.
Beats co-founders and music industry pioneers Jimmy Iovine and Dr. Dre will join Apple, along with their team of employees. Jimmy has been on the cutting edge of innovation in the music industry for decades, including as a key partner for Apple in the launch of the iTunes Music Store more than ten years ago. He has produced or collaborated with some of the most popular artists in history, and been an important contributor to the success of the iTunes Store.
Beats Music was built with deep respect for both artists and fans. We think it’s the first subscription service to really get it right. Both Apple and Beats believe that a great music service requires a strong editorial and curation team, and we will continue to expand what we do in those areas. The addition of Beats will make our incredible iTunes lineup even better, extending the emotional connection our customers have with music.
Beats Music (along with Jimmy Iovine and Dr. Dre) will be integrated into Eddy Cue’s services team while headphones and speakers will now fall under Phil Schiller’s domain. Cook ends his letter by saying “I hope you are as excited as I am about this new chapter in our history.” You can read the full memo below:
