Apple closes $3B Beats deal, welcomes the company 'to the family'

Apple says that it will work with the Beats team to "elevate" the experience already created by Beats products.

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Apple has officially closed its $3 billion deal to acquire Beats.

The iPhone maker posted a page on its site on Friday, announcing that the deal has officially closed. Apple provided no insight into what it has planned for Beats now that it owns the company, but did welcome the firm "to the family."

"Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family," Apple wrote. "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," Apple continued. "We're delighted to be working with the team to elevate that experience even further. And we can't wait to hear what's next."

Apple announced that it had acquired Beats for $3 billion in May. While the company was interested in Beats' core business of headphones, it also made clear that it was enticed to make the move by Beats Music, a streaming-music service that Apple is in some way planning to leverage for its own product lineup.

That Apple was able to close the deal so quickly is perhaps no surprise. The deal received European Union approval earlier this week after the regulators indicated no competitive issues would arise from the deal.

The big question now, however, is what Apple has planned. Earlier this week, a report surfaced, suggesting Apple could cut as many as 200 jobs at Beats. The cuts are expected to impact those in human resources, finance, and other roles that overlap with those at Apple. Creative workers at Beats will stay on at Apple, the report said.

CNET has contacted Apple for comment on the closing. We will update this story when we have more information.

About the author

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

 

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