Beats Electronics acquires digital music service MOGBy Hanleigh Daniels 4 July 2012 | Categories: news
Beats Electronics has announced that it has agreed to acquire the on-demand digital music service MOG. The music firm forked out $14 million (approximately R113 million) for MOG.
This is Beats Electronics’ first acquisition, and will result in MOG’s music service continuing to function as an independent company, with no immediate changes to the service for the company’s subscribers.
The MOG music network (MMN), which delivers music content as well as music-focused advertising online, does not form part of this deal and will remain its own entity. MOG founder and CEO, David Hyman, will assume the title of CEO of MOG, and report directly to Beats president and COO Luke Wood.
“Beats By Dre was born out of a need to restore the emotional connection with music that was lost by the degradation of sound from the digital music revolution, starting with the weakest link in the experience at the time—headphones,” explained Wood.
“But it was never about just headphones. We’ve since expanded the Beats mission to every other link in the music experience chain – speakers, mobile phones, personal computers and automobile sound systems. With MOG, we are adding the best music service to the Beats portfolio for the first truly end-to-end music experience. With their talent and technology, the possibilities around future innovation are endless,” Wood stated.
Beats Electronics was co-founded in 2006 by legendary rapper and hip hop producer Dr. Dre and Interscope Geffen A&M chairman Jimmy Iovine. In August 2011, the Taiwanese smartphone and tablet maker HTC became a majority investor in the company.
Since that time, the firm launched a number of Beats-enabled smartphones in an effort to entice music lovers and the youth market away from HTC’s Android-based rivals and Apple’s iPhone.
“We’re thrilled to be joining forces with Beats, a company that’s committed at the highest level to the experience surrounding music delivery; the fit feels perfectly natural,” said MOG CEO, David Hyman.
“MOG subscribers can expect continued excellence from the best music service in the market, and we look forward to putting premium music experiences in the hands of millions of music lovers everywhere,” Hyman concluded.
In related news, Microsoft and Yammer recently entered into a definitive agreement, under which Microsoft will acquire the enterprise social network provider for a cool $1.2 billion in cash. The Yammer team is to becomes part of Microsoft’s Office division, and will continue to develop its standalone service.
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