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Beats finally set to announce acquisition of MOG

The company co-founded by Dr. Dre is at long last ready to unveil the acquisition deal that was first reported on in March, sources tell CNET.

Greg Sandoval Former Staff writer
Greg Sandoval covers media and digital entertainment for CNET News. Based in New York, Sandoval is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at @sandoCNET.
Greg Sandoval
Greg Sandoval/CNET

Beats, the maker of the high-end headphones that have become a status symbol, is finally ready to disclose that it is acquiring digital music service MOG, according to sources familiar with the deal.

The deal could be announced any day, the sources said. Financial terms weren't available.

CNET first reported that MOG was for sale in February and AllThingsD reported three weeks later that Beats was amid an acquisition of the service, which had been a back-of-the-pack subscription music service for years.

"There's nothing to confirm at this time," said a Beats spokeswoman. Representatives from MOG were not immediately available to comment. We'll update the story as soon as we hear back.

Beats is famous for the company's founders, producer-rapper Dr. Dre and Universal Music Group producer and executive Jimmy Iovine. Beats was acquired last year for $300 million by Taiwanese cell phone maker HTC.

My sources say that Beats doesn't intend to make any dramatic changes -- initially. In March, insiders said Beats managers were considering a plan to use MOG as the backbone for a Beats-branded online store, where it would offer music, headphones, and other merchandise.

Beats has become a designer brand in urban America. The name is to headphones what Nike is to sneakers.