Apple got into music at an early age with iTunes, but lately the trend has been shifting toward streaming music services. What can it do about that? Perhaps buying Beats Electronics may be just the thing. According to a new report from The Financial Times, Apple is in talks with Beats Electronics to allegedly purchase it for $3.2 billion, making the possible deal quite high profile.
According to people reportedly familiar with the negotiations, news on it could break at some point next week, though talks are not final.
Apple will apparently grab both Beats’s audio hardware business, and relatively new streaming-music service, with the top dogs from the audio company reporting straight to Apple’s Chief Executive Officer, Tim Cook.
The likely reason for Apple’s interest in spending this cool sum is to regain interest in their music platform, as it tries to upgrade marketing and products to keep customers. Also, a streaming-music service would likely turn into a powerful asset for Apple’s iTunes, which has yet to announce any products with that kind of pricing structure.
If this turns out to be correct, this will be Apple’s largest acquisition ever. Some may argue that the audio company may not be worth the price, as it is not valued anywhere near Apple’s $3.2 billion offer, but Apple may see great opportunity in the purchase. Needless to say, we are interested in how Apple acquiring Beats will play out.
Update: This deal still isn’t formally confirmed, but it might have just picked up a little extra support thanks to a celebrity shout-out. Tyrese was hanging out with Beats co-founder Dr. Dre and posted a Facebook message (which has since been taken down) describing himself being “in the studio with Dr Dre ON THE night his deal went public that he did with Apple 3.2 BILLION!!!!!”