To usher in the new month of August, Apple welcomed Beats to the family with an official announcement on its website.
“Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family. Music has always held a special place in our hearts, and we’re thrilled to join forces with a group of people who love it as much as we do. Beats cofounders Jimmy Iovine and Dr. Dre have created beautiful products that have helped millions of people deepen their connection to music. We’re delighted to be working with the team to elevate that experience even further.”
The announcement features the redone Beats official website front page with a statement from the team. From this month onawards, all of Beats Electronics online transactions will be dealt through Apple’s Online Store following its shut down. Bloomberg also reported that Vivendi’s Universal Music Group sold its 13 percent stake in Beats Electronics to Apple for $404 million.
With Apple’s $3 billion deal signed and sealed with America signing off, Ian Rogers, who was the CEO of Beats Music, will take on Apple’s own iTunes Radio streaming music service. He will be heading up both streaming music services. Beats co-founders Jimmy Iovine and Andre Young (Dr. Dre) are also expected to take on senior roles with the merge coming through.
However, the biggest catch that comes with the acquisition of the company, is that 200 out of the 700 Beats positions will be redundant in the coming months. Most of the firing is due to the overlap with Apple such as Human Resources, Finance and Accounts. And even, if the employees did receive job offers, it seems that these are just temporary positions. How incredibly sad for the loyal employees of Beats!
“Apple spokesman Tom Neumayr’s explanation: “We’re excited to have the Beats team join Apple, and we have extended job offers to every Beats employee. Because of some overlap in our operations, some offers are for a limited period and we’ll work hard during this time to find as many of these Beats employees as we can another permanent job within Apple.”