Apple has purchased Beats Music for nearly $1 billion in a deal that will see it pay the streaming service’s owners $8.5 billion, sources have confirmed to The Wall Street Journal.
The transaction was first reported by CNBC on Thursday.
It follows a series of announcements by Apple that have included the acquisition of Beats, the launch of Apple Music and its $10 billion purchase of Beats Electronics.
Apple Music, which was launched in November, allows subscribers to listen to music and other content from their phones using a subscription-based model.
It is also available on Apple’s online music service and through Apple TV.
The company also announced in October that it was partnering with YouTube to stream music from its own content and that it would soon begin offering access to its YouTube Music Library.
Beats Electronics, which has a separate streaming music service called Beats Music, also began streaming music in the US on Monday.
The deal comes a day after Apple paid $3.9 billion for Beats, which had been worth about $3 billion at the time of its initial public offering in August 2015.
The company previously announced that it planned to acquire the streaming music company earlier this year.
The Wall Street report says that the deal will pay $8 million in cash to the five owners of Beats who will receive a $1.1 billion cash payout and be paid out as a $10.5 million buyout, along with $750 million in additional earnings over the life of the deal.
Beats will be paid on the first of every month starting in 2019.
The report also notes that the purchase is expected to close in 2020.
The timing of the acquisition is significant, as it follows an announcement in October by Apple, which announced a series on the purchase of Spotify.
The purchase of a company that is “one of the world’s biggest music services” and that had over 300 million monthly active users was seen as a way to shore up Apple Music’s position in the market, especially as the streaming giant was losing subscribers.