Beats Receives $60 Million Investment To Build Music Streaming Service
Beats Audio, the company behind the popular headphones, has raised $60 million in funding led by billionaire Len Blavatnik. Blavatnik will be using the money to create a music streaming service called Daisy. Beats Audio was founded by music producer Jimmy Iovine and rapper Dr. Dre.
The Daisy music streaming service is expected to launch in late 2013. The investment was made through Blavatnik’s investment arm Access Industries and they will be joined by Marc Rowan (Apollo Global Management), James Packer (casino magnate), and Lee M. Bass.
Beats is creating the Daisy music-streaming service to compete against companies like Spotify, Rhapsody, and Rdio. Beats acquired the MOG music service last year.
“Beats has the vision, the brand, the management team and now the investor group to effectively change the expectations and experiences of a music subscription service,” stated Blavatnik. Access Industries also owns Warner Music Group. Last year Access invested $130 million into a Paris-based music streaming service called Deezer.
Apple is rumored to be in talks with Beats Audio for a partnership around a music streaming service. Beats said that New York based investment bank Moelis & Co. acted as a financial advisor and placement agent.