Update: Beats Electronics to buy online music service MOG for $14 million

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Beats audio just announced that they’re buying online music service provider MOG. This will be Beats first acquisition since HTC acquired 51% of the audio company. Judging from the acquisition, Beats wants to provide its customer an all-in-one and just the producing great sounds. MOG on the other will get another lease in life, after losing to another online music provider Spotify.

With the combine muscle of MOG, HTC and Beats; the company can now be a vertically integrated company that has control over the hardware, service and the content (more than 16 million tracks from MOG) to provide that one of a kind music experience to it’s customer/users.

According to Beats, MOG will still operate as an independent company, so MOG users/subscribers can keep enjoying the MOG service. Not included in the acquisition is MOG Music Network (MMN), which is advertising arm of MOG. Terms of the acquisition were not disclosed.

Update: TechCrunch is reporting that Beats revealed to its shareholders that the MOG acquisition is $14 million.

You read the full press release below.

Beats Electronics to Acquire Digital Music Service MOG.
02 July 2012

Santa Monica, CA—Monday, July 2, 2012—Beats Electronics LLC, the company co-founded by legendary artist and producer Dr. Dre with Interscope, Geffen, A&M Chairman Jimmy Iovine, announced today it has agreed to acquire the award winning on-demand digital music service MOG.

This is Beats Electronics’ first acquisition, and represents a significant milestone in the company’s commitment to creating the best end-to-end premium music experience for both fans and artists alike.

“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,” said Beats President and COO, Luke 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.”

MOG’s music service will continue to operate as an independent company with no immediate changes to the service or impact on MOG users/subscribers in any way. The MOG Music Network (MMN), the premier destination for music content online and largest music focused advertising network, is not part of the acquisition and will remain its own entity. MOG employees will remain with the company and will continue to work out of MOG’s offices in Berkeley, CA. MOG founder and CEO, David Hyman, will assume the title of CEO of MOG reporting directly to Beats President and COO Luke 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; 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.”

The acquisition closed today. Terms of the deal were not disclosed.

Last modified: July 2, 2012

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