Apple Rumoured To Buy Beats For $3.2 Billion

There is currently a massive deal underway which will see Apple acquiring Beats Electronics for $3.2 billion.  Old school Hip-hop artist Dr. Dre and record producer Jimmy Iovine founded the headphone maker and music-streaming distributor. Both Apple Inc. and Beats Electronics have declined to comment officially on the deal, but Dr Dre has made his feelings known in foul-mouthed fashion on social media outlet Facebook although the video has since been removed.

The Financial Times have said Apple could announce the deal as early as next week. In a report posted late on Thursday, the newspaper did warn the deal could collapse if the two sides are not able to agree on final details.  This potential acquisition would insert Beats Electronics’ popular line of headphones and their music streaming service to the Apple world.  This sphere already includes digital music players and the iTunes store and is the top music retailer on the planet.  If the deal were finalised then it would be the largest purchase in Apple Inc.’s 38-year history by a long way.

Apple has not released a groundbreaking product since its former CEO, Steve Jobs, died back in October 2011. This void has amplified the pressure on Tim Cook, to prove he is capable of sustaining the accomplishments and growth that has turned Apple into the world’s most valuable company.

Spending money is something that Cook has shown a willingness to do.  Jobs never did like using the firm’s finances.  But $3.2 Billion is a monolithic amount by anybody’s imagination.

The pursuit of Beats Electronics by Apple is yet another indication that the company is having a spot of trouble generating growth on its own.  The negotiations also are taking place as the music market is increasing toward streaming and away from downloads, the media that once drove the success of Apple’s iTunes store.  In 2012, Beats purchased streaming music service MOG. This service it then transformed and re-launched as Beats Music in the start of this year. The commencement of the service was fuelled by a momentous partnership with AT&T.  The partnership allowed up to five family members to pay $15 per month for the service so long as they continued as AT&T wireless customers.

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[Image via beatselectronic]

SOURCE: http://phys.org/news/2014-05-apple-verge-32b.html