Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
The acquisition is Beats’ first since rapper Dr. Dre cofounded it in 2008.
Beats Electronics LLC, which sells headphones, speakers, and audio systems to consumers, will buy the digital music service Mog. Beats did not say how much it will pay for Mog.
Rap artist and producer Dr. Dre founded Beats with Jimmy Iovine, chairman of Interscope Geffen A&M Records, in 2008. The Mog deal is the first acquisition for Beats.
“[Beats] 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,” says Luke Wood, Beats president and chief operations officer. “With Mog, we are adding the best music service to the Beats portfolio for the first truly end-to-end music experience.”
Mog streams more than 15 million songs to listeners via any Internet-enabled device, including smartphones, TVs, Blu-ray players and car stereo systems. Mog will continue to operate as its own unit, without service interruptions for subscribers, Beats says. Mog CEO David Hyman will report directly to Wood. “We’re thrilled to be joining forces with Beats, a company that’s committed at the highest level to the experience surrounding music delivery,” Hyman says.
Beats Electronics sells the ‘Beats by Dr. Dre’ headphones line and Beats Audio HD-sound systems.