Apple Confirms Deal to Buy Beats

(Los Angeles Times/MCT) -

Apple Inc. has confirmed that it has reached a deal to buy headphone maker Beats Electronics and digital music service Beats Music.

The Cupertino, Calif., tech giant said Wednesday that it will acquire the two companies for a total of $3 billion.

That’s less than the $3.2 billion Apple was said to be prepared to pay for Beats when talks leading up to the deal were reported earlier this month, but still is easily the biggest acquisition in the company’s history.

Beats, which is headquartered in Culver City, Calif., was founded in 2008, and is best known for its premium headphones. It launched the subscription music service Beats Music as a separate entity in January.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s chief executive, in a statement. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

The deal, which consists of about $2.6 billion in cash and $400 million in stock, is expected to close later this year.

“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine, Beats co-founder, in a statement.