Dive Brief:

• After conducting its due diligence, Apple is trimming $200 million from its offer and will buy Beats Electronics LLC for $3 billion.

• The purchase will garner Apple a music streaming service (which should boost its iTunes digital music business), an uber-popular high-fashion line of headphones, and two hip-hop executives. Rapper Dr. Dre and music executive Jimmy Iovine, the founders of Beats, will join Apple as executives.

• Apple CEO Tim Cook said that “Jimmy and Dre have built something phenomenal,” and that the acquisition gives his company a “head start” in the increasingly competitive music-streaming arena and a line of audio hardware already established and popular. 

Dive Insight:

Apple CEO Tim Cook seems quite enamored with the success Beats has had with music streaming and headphones, so much so that Apple is keeping the Beats name — a rare move for a company so devoted to its own brand. While many analysts questioned the move when it was first rumored, several are now saying the deal presents Apple with great opportunities to expand its content offerings, among other opportunities for growth.