Apple closes $3-bn acquisition of headphone co Beats, to lay off 200

DPA San Francisco | Updated on August 02, 2014

Apple has formally closed its $3-billion acquisition of Beats Music and Beats Electronics and said it would lay off 200 of its workers.

In a post on its website on Friday Apple welcomed Beats “to the family” but gave no clear indication as to how the headphone and streaming music company would be integrated into the giant electronics enterprise.

“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,” Apple wrote.

“We’re delighted to be working with the team to elevate that experience even further. And we can’t wait to hear what’s next.” Beats was founded by music executive Jimmy Lovine and rapper Dr Dre in 2006 and was bought by Apple for $3 billion in May.

In the interim the company has been sued by Bose over the noise-cancelling technology in Beats’ headphones. Bose is seeking an injunction to prevent Beats from selling products that allegedly violate its patents, as well as an award for damages.

According to the Apple website, Apple executives visited Beats headquarters earlier in the week and outlined plans to lay off some 200 Beats employees in areas such as finance, support and human resources, where there is significant overlap with Apple’s existing structure.

Apple however is keeping the company’s creative and development teams, the report said.

Published on August 02, 2014

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