Apple Reportedly in Talks to Buy Beats Music for $3.2 Billion
Apple is reportedly in talks to buy Beats Electronics. Beats, founded by Dr. Dre and Jimmy Iovine in 2008, is known for its headphones, earphones, speakers and author audio equipment. These products include the Beats portable Pill speaker pictured above. Beats also launched its Beats Music streaming service last year. CNET reports that the service has about 200,000 subscribers.
Fortune reports that Apple is prepared to pay $3.2 billion for Beats. This would make it the company's largest acquisition ever if it goes through. The next biggest acquisition according to MacRumors was NeXT in 1996, which cost Apple $404 million.
Apple is known for making its own accessories for its products so it is not completely clear why it wants Beats. Beats is a very popular brand and Apple does sell third party accessories in its stores. Bloomberg reports that the Beats leadership team would reported directly to Apple ceo Tim Cook.
Posted on May 8, 2014