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Apple Preparing to Buy Beats for $3.2 Billion

Beats Electronics founded by Dr. Dre and Jimmy Lovine are about to become billionaires if Apple buys the company as rumors have reported. The audio company may be purchased by Apple for a staggering $3.2 billion. If the reports are correct, this would be the largest purchase from the mobile giants large cash stockpile. “People familiar with the negotiations” said the deal could be announced sometime next week, but final details at this point are still rolling in.

Beats could help Apple reach Android, which reports have surfaced that the company was working on a version of iTunes for Android. Now it’s unclear if Beats branding would be placed on Apple computers and phones, but its likely the brand will likely stay intact. The price tag seems small compared to other tech purchases such as Facebook’s $19 billion buy of WhatsApp.  The price tag is large considering that Beats is valued at $1 billion last september.

While neither company has released any official statements, a YouTube video of Dr. Dre has surfaced hinting that Apple has purchased Beats.

Apple is trying to compete with with other streaming services like Spotify, Rdio, and others. The company doesn’t have any music services on Android which is a growing market that Apple has not been to stop. While Beats has a wide audience with a lot of sports players wearing them before games. These players already have iPhones many times so if Apple could control all the tech players have it could be great for the company. Now its not like Apple will start boxing Beats headphones with iPhones right away but that could be a future plan for the company.

Tell us what you think about the rumors that Apple will purchase Beats Electronics in the comments below!

Source :

Financial Time

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