Could bring a Spotify-like service to trendy headphone maker's parent firm, HTC.
HTC is the majority owner of Beats, which is best known for very expensive 'cans' beloved of rappers and footballers everywhere.
At present, HTC phones regularly ship with Beats headsets included, but this new deal hints at a wider music play.
The acquisition of MOG, USA Today reports, suggests a streaming music service could be integrated into HTC devices.
Previously, HTC had flirted with such a service when it launched and then quietly dropped HTC Listen.
But now, with Samsung beefing up Samsung Music Hub and Spotify doing all manner of pre-load deals, HTC clearly needs to up its game.
Luke Wood, president and COO, Beats, said: "Beats was created as a response to the complete erosion of the music experience. Our whole reason for starting Beats was to try to bring emotion back into that experience. We believe music services is a vital part of that ecosystem."
David Hyman, MOG founder and CEO, said: "The addition of MOG's music service to the Beats portfolio will provide a truly end-to-end music experience. Time will tell exactly how we integrate our products and services."