Apple is said to close an acquisition with Beats Electronics, the California based producer of audio products and equipment. The company was founded by rapper and hip-hop producer Andre “Dr. Dre” Young and Interscope-Geffen-A&M Records chairman Jimmy Lovien, the company chiefly produces products under the brand “Beats by Dr. Dre”. According to Financial Times, the deal could be finalized anytime next week if negotiations go smoothly.
Although I think Apple’s buying Beats has nothing to do with headphones. All about Spotify & cloud-streaming music services iTunes.
Apple will acquire Beats’ streaming music service, which launched this year, and its audio equipment business, which includes its brand of headphones and audio equipment.The Beats management team will report to Mr Cook, said people familiar with the deal. Apple and Beats declined to comment.
The amount offered for acquisition of Beats Electronics is $3.2 billion dollars which is not a huge amount in comparison to the NeXT acquisition which Apple made back in the year 1996. Earlier this year, Tim Cook, CEO of Apple said that the company is open to make sizable acquisitions if the deal proves to be beneficial. “We have no problem spending 10 figures for the right company, for the right fit that’s in the best interest of Apple in the long-term. None. Zero.”
The acquisition of Beats Electronics seems bright as Apple has been rumored to be working towards an entire reconstruction of iTunes so as to address declining music sales. A part of Apple’s overhaul plan was said to include a streaming music service similar to Spotify, Apple’s choice to take over Beats comes out as an indication to purchase Beats services rather than building one from scratch.
Tim Cook and Beats CEO, Jimmy Iovine have had a constant association about a possible co-operation back in January 2013. Iovine also mentioned about Steve Jobs on a streaming music service long time ago but it didn’t get translated.