Apple just announced today that they are acquiring Beats for $3 billion. The announcement was made via a press release from Apple. The deal will include both Beats Music and Beats Electronics. Beats co-founders Jimmy Iovine and Dr. Dre will be joining Apple.
Apple earlier introduced iTunes Radio but it's simply a streaming radio service and not an actual on-demand music service. Apple has been interested in coming out with a subscription basic streaming radio service for awhile now. Apple recently said that Beats Music is the first subscription service that they feel got it right. Tim Cook, CEO of Apple, is already promising new features that'll be coming to the Beats Music as well as new products.
The acquisition will include $2.6 billion in cash and $400 million that will be vested over time. That deal is expected to close sometime next quarter. At this time the apps are still available and actually were just updated today for iOS with an extended 14-day trial period and a price drop of it's yearly subscription from $120 to $100.