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Apple said to be buying Beats for $3.2 billion

A takeover of Beats would be Apple’s biggest acquisition to date.

lil-wayne-beats

Apple and Beats executives are currently in the final stages of negotiation of a deal that would see Apple acquire Beats in its entirety, according to a report by the Financial Times and later confirmed by multiple news sources.

Though the deal has yet to be announced, and neither Apple nor Beats will comment on it, the acquisition would see both Beats’ audio accessory division and music streaming service taken over by Apple. The deal is rumored to be for $3.2 billion, but that has not been confirmed.

Apple and Beats have historically had a good working relationship, as Apple sells Beats headphones in many of its retail stores. Likely Apple will retain some Beats branding after the deal goes through.

The timing of this deal comes days after a report by Nielsen’s Sound Scan which revealed that albulm and track sales have been declining substantially quarter over quarter. In the first quarter of the 2014 calendar year, sales of both dropped 13 and 11 percent respectively.

Last year Gizmodo’s Sam Biddle published a fascinating inside scoop of how Monster was outmaneuvered by Dr. Dre and Interscope Records’ Jimmy Iovine, signing a one sided deal that had them effectively act as a white label ODM manufacturing the headphones for a fixed fee while Dre and Iovine raked in the profits. The piece is certainly worth a read.

Source: Financial Times

 

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