Once again, rumors are turning out to be true. Beats Electronics, the company which makes the world famous Dr Dre headphones, is buying the music streaming service MOG. Both companies have confirmed the acquisition officially, putting an end to the long-running speculations about the deal.
The deal will help both companies survive in the competitive market. MOG will find it easier to fight it out with Spotify, the more popular rival service, while Beats has leveraged its chances of giving better consumer electronics experience.
MOG top brass believe that the acquisition will actually help both companies to provide an end-to-end music experience to their users.
The deal was in the grapevine since March though both companies kept a complete silence. It will be interesting to see how these companies merge their areas of expertise to enrich their products.
Despite digging deep and wooing insiders, we were not able to get any clue about the money involved. It was the first-ever acquisition for Beats, so at this point it is not very clear if it will go for more.
Industry sources indicate that HTC can also get involved since it has a $390 investment in Beats Electronics. We will have to wait and see if HTC will come out with a music streaming service to improve its position against the rival Samsung in the Android camp.