It took a bit longer than expected, but Apple announced today that it is indeed buying Beats—which makes headphones and a streaming-music service—for $3 billion, including $400 million that will vest over time.
Telling, perhaps: Apple listed Beats Music—the “critically acclaimed” but so-far modestly popular streaming music service—in its press release ahead of Beats Electronics, the headphone business. As expected, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple.
“We could build about anything that you could dream of. But that’s not the question,” Apple CEO Tim Cook said in an interview with Re/code. “The thing that Beats provides us is a headstart, and it provides us with incredible people, kindred spirits.”