LOS ANGELES (AP) -- Upscale headphone maker Beats Electronics is buying MOG, a music subscription service that has struggled to compete with rivals such as Rhapsody and Spotify.
Beats is the parent company of the "Beats by Dr. Dre" line of headphones. It was founded by rapper and producer Dr. Dre and Interscope Geffen A&M Records Chairman Jimmy Iovine in 2008 in Santa Monica, Calif.
Taiwanese cellphone maker HTC said in August that it was buying a 51 percent stake in Beats for $300 million.
The combination announced by Beats on Monday suggests that MOG's music service could be integrated with Beats in its various businesses including speakers, mobile phones, personal computers and car stereos.
Terms of the deal, which closed on Monday, weren't disclosed.
MOG is based in Berkeley, Calif.