Report: Apple Close to Buying Your Favorite Headphone Maker for $3 Billion AP
Apple is close to buying a high-end headphone maker, reports the Associated Press. The deal could be worth as much as $3.2 billion, which is the most Apple will have ever paid for an acquisition, the story says.
"Apple is orchestrating a $3.2 billion acquisition of Beats Electronics, the headphone maker and music streaming distributor founded by hip-hop star Dr. Dre and record producer Jimmy Iovine, according to a published report," the AP story reports. The piece adds: "Citing people familiar with the negotiations, The Financial Times says Apple could announce the deal as early as next week."
The AP story also says, "Beats Electronics was founded in Santa Monica, California, in 2008 by Dr. Dre and Jimmy Iovine. Its headphones were manufactured by Monster Cable until the two companies parted ways in 2012. The headphones have become a bit of a status symbol worn by celebrities as well as audiophiles.
"In 2012, Beats bought streaming music service MOG, which it transformed and relaunched as Beats Music earlier this year. The launch was fueled by a landmark partnership with AT&T ... that allowed up to five family members to pay $15 a month for the service as long as they were AT&T wireless customers. The deal broke the industry mold of charging each person $10 per month."
The report adds, "Both Apple and Beats Electronics declined to comment to the Associated Press."