Beats Electronics Acquires Mog

Rapper Dr. Dre's headphone makers scoop up digital streaming service

As the race to be the leader in the digital music streaming industry intensifies, even headphone manufacturers are getting in on the action. On Monday, Beats Electronics announced the acquisition of Mog, a digital music competitor to sites like Spotify and Rdio for an undisclosed amount.

The L.A. Times reported via anonymous sources that the deal is worth less than $10 million, while the New York Times reports the deal to be worth about $16 million.

According to an email from Mog Founder and CEO David Hyman, Mog was approached by Beats, the headphone purveyors co-founded by rapper, Dr. Dre and Jimmy Iovine (phone makers HTC also own a majority stake). The company has no plans at the moment to meddle in Mog's affairs. Yet. "Mog will continue to operate as an independent company with no immediate changes to our music service; there will be no impact on you," Hyman assured subscribers.

There is considerable speculation that Beats will look to pair Mog's streaming service up with Beats' high end headphones, which could introduce Mog to a much larger audience.  According to comScore, HTC has 6.3 percent of the mobile phone market share as of May 2012, which would make any standard Mog-HTC integration a considerable boost for the fledgling service.

Perhaps the most interesting aspect of the deal is what isn't included. Mog's advertising network is not included as part of the acquisition. The Mog Music Network features over 1,700 music and entertainment blogs and is said to be a significant source of revenue for Mog. While its future is uncertain, Mog may find itself in front of some new eyes in the near future, but with giants like Spotify gobbling up subscribers as quickly as 8,000 per day, they'll want to act quick.