Schirter Music Technology, Inc. (SHT) announced a $5.4 billion, 20% buyout offer for its music technology business.
The company has a $2 billion investment in Beats Electronics Inc., which has the licensing rights to music and related content from Apple Music and Spotify.
The purchase includes a new $3 billion investment that will support a new “music ecosystem” with a range of services, including an “Internet of Things” music streaming service.
Schirber’s CEO Michael Schirner said in a statement: “The timing of this acquisition was perfect as we continue to build a sustainable and attractive business for the people who love the Schirters.
The opportunity to accelerate our growth and invest in a growing segment of the industry is an important part of the Schirs’ long-term strategy.”
“We are excited to work together to create a new path for our fans, our company and our industry,” Schirrer said in the statement.
“We look forward to the new direction we are taking together as we build the world’s largest music business.”
SHT CEO Michael Schroeder said in an interview with Forbes that Schirrter’s acquisition of Beats Electronics would give it access to a broad spectrum of the music streaming industry.
“If you’re in the streaming space, it is a great fit,” Schroeder told Forbes.
“You’ve got this huge amount of data, and you can tap into that data and understand how people are listening to their music, and it allows you to figure out where the biggest music trends are.
It’s really the way of the future.”
Schirner told Forbes that he’s not sure what Apple Music will be like when it launches, but that the company’s music app will be able to stream music from Apple’s own streaming service, iTunes, and other streaming services.
Schroeder said that Schircers purchase of Beats was not related to his company’s plans to acquire Beats Electronics.
SIR Music CEO Michael Shultz, the CEO of SIR, said in his statement that his company was “delighted” to acquire Schirrier’s music technology and digital music business.
Shultz added that the Schirchers’ acquisition of Schirster would help SIR create a music ecosystem with a focus on “creating innovative music and entertainment experiences.”
The news comes a week after Schirler said in March that he would invest $3.2 billion in Beats Music.
According to Bloomberg, SIR will also be acquiring Beats Electronics’ U.S. headquarters, the acquisition of which was approved by a board of directors that includes CEO Michael D. Schirkner, chairman and CEO, and CEO Michael R. Schircher.
The Schirs are expected to announce the acquisition in the coming days, according to Bloomberg.
Read more about Schirker and the Schirlers here: https://www.businessinsider.com/schirmers-music-technology-company-michael-schirner-buyout-offer-shes-still-the-king-of-music