New York – Microsoft agreed to purchase SMS Audio for $6.7 billion. This deal, should it be approved, will combine the two technology tycoons, forming “one of the largest audio companies of the century,” says founder Curtis Jackson, or 50 Cent.
Analysts agree that this consolidation will make SMS a more formidable competitor to long-time rival Beats Electronics, artist Dr. Dre’s corporation.
“It isn’t just about reaching more people- it’s about growing as a company,” says Microsoft CEO Satya Nadella.
SMS Audio shareholders will be offered one Microsoft (MSFT) share for each share that they own, valuing the audio company at currently $48.68 per share.
On a call with reporters on Friday, Microsoft executives projected $1.4 billion in operating efficiencies as a result of the deal.
“To really compete with Apple and Intel, SMS needs a partner large enough to rival both companies.”
The two companies expect the merger to take effect by March 2015 and anticipate approval of the deal within the next month.