Beats is majority-owned by Taiwanese smartphone maker HTC. There's no information yet on the price of the deal.
The news began to trickle out on Monday when Business Insider reported that a single source leaked information of the acquisition. By Tuesday, multiple sources had come forward to confirm the rumor.
Mashable has reached out to a spokesperson for MOG and is waiting for a response.
Started in 2005, MOG is a music subscription service with 14 million songs. It does not have the name recognition of music-streaming sites such as Pandora or Spotify, despite often being mentioned alongside other top music services. MOG CEO David Hyman has reportedly said MOG has 500,000 users, but won't say how many are paying subscribers.
Some have speculated that Beats' interest in the company lies with its music subscription service and connections with major record labels.
Digital music subscription services have grown from 8 million users in 2011 to already 13 million subscribers in 2012, according to a study by International Federation of the Phonographic Industry (IFPI). And digital music sales have grown for the first time since 2004. Gartner Inc., an IT research company, predicts that by 2015 online music sales will generate $7.7 billion dollars per year.
Just last month, MOG CEO David Hyman said the company had no plans to sell. HTC purchased a 51% stake in Beats Electronics in April 2011 for $309 million.