Beats Electronics, makers of the popular ‘Beats by Dr. Dre’ range of headphones, is buying MOG – a music subscription service that launched in Australia last month.
Beats was co-founded by rapper and producer Dr. Dre in 2008, and last year in August HTC bought a 51 percent stake in the company for US$300 million.
“With their talent and technology, the possibilities around future innovation are endless,” Beats President Luke Wood said in a statement.
Woods also revealed that MOG would continue to operate as a stand-alone service but did not rule out the option to integrate the Beats headphones and speakers further on down the track.
“For now, MOG will remain the same product today as it was yesterday and offer the same rich experience. What we do know is that we’re committed to offering an integrated experience for the consumer – from the point of discovery to the point of playback,” Wood said.
Terms of the deal were not disclosed, which was finalised on Monday, but executives familiar with the transaction said Beats, paid less than US$10 million for MOG, who has about 500,000 registered users. The executives declined to be named because they were not authorised to speak publicly, according to the Los Angeles Times.
MOG and Telstra recently announced an exclusive partnership earlier this year, providing ad-free, unlimited and on-demand music to Australian customers that can be accessed and streamed to their smartphone, tablet, desktop computer or smart TV via an internet connection for a monthly fee.
MOG users and subscribers can read a FAQ about the acquisition on MOG’s website.