Apple confirmed this afternoon that it is indeed acquiring Beats Electronics for $3 billion, including $2.6 billion in cash and $400 million in stock.
Apple CEO Tim Cook told the Wall Street Journal that Beats co-founders Jimmy Iovine and Dr. Dre will stay with the company and work with Apple’s electronics and music-streaming divisions while also working to break down the “Berlin Wall between Silicon Valley and LA.”
I also think it’s significant, though, that Apple intends to keep the Beats brand. As I suggested in a previous post, I think the Beats brand represents a significant part of the value in the deal for Apple and could eventually be used as a brand for non-Apple — even non-iOS — products in the future.
Certainly nothing in today’s announcement forecloses that possibility.