Beats finally announces deal to acquire MOG
The companies have not disclosed the terms of the deal, but Beats says that MOG's commitment to high music-quality sold them on the deal.
Beats Electronics, the headphones and audio-software maker, has finally confirmed that it has acquired MOG.
The companies revealed the news to USA Today this morning, Terms of the deal were not disclosed, and both companies balked when asked how MOG, which provides over 15 million songs for users to stream, might be integrated into Beats., saying that the firms would be inking a deal quite soon.
However, CNET reported last week, citing sources, that Beats didn't have any plans to drastically change MOG in the near term. There has been some talk, however, of using MOG as the backbone for a Beats-branded marketplace for headphones and music, among other products.
Beats, which also makes earphones and speakers, got out of the gate quite quickly, thanks to famous founders: producer-rapper Dr. Dre and Universal Music Group executive Jimmy Iovine. HTC acquired Beats last year for $300 million, though the company still operates as it did before the purchase.
Although neither MOG nor Beats had much information to share with USA Today, Beats' president and chief operating officer, Luke Wood, said that the company chose MOG over others because of its desire to deliver high-quality audio.
"They were the first service to offer their entire catalog in the 320-kilobit format," Woods told USA Today. "I also think they were the most progressive and the first service to be really committed to multiple access points in the deals they did with LG and Samsung for the TV and BMW for the car (and) they were very quick to push music to the smartphone."
CNET has contacted both Beats and MOG for comment on the acquisition. We will update this story when we have more information.