×
You will be redirected back to your article in seconds

Apple Close to Buying Beats Electronics for $3.2 Billion

Apple could be close to making the biggest acquisition in the company’s history, offering $3.2 billion to purchase headphone maker Beats Electronics, which recently launched a streaming music service.

Should the deal close, it would mark a major payout for Beats founders and music industry icons Jimmy Iovine and Dr. Dre, who launched the Santa Monica, Calif.-based company in 2008. Its products were produced by Monster Cable until 2012, when founders bought back control of the company from Monster and mobile hardware maker HTC.

A deal could be announced next week, individuals close to the companies say.

The deal stands out not only for Beats’ holdings, but because Apple rarely buys other companies to bolster its bottom line. That’s changed under Apple chief Tim Cook, who has dug into the company’s $133 billion coffers and acquired 24 companies in the past 18 months. He is considering other additions to the company to help its products stand out from rivals, including Samsung, and inject a “cool factor” back into the company that has relied on iTunes, its iPhone and iPads for far too long.

The Beats deal would make a lot of sense for Apple.

Beats has established itself as a major player in the industry with its colorful line of headphones. And its music streaming service, which launched in January for $10 a month, would be used to tune up a streaming service Apple has been developing internally. Beats Music competes with Spotify, Google Play Music, Pandora and Last.fm.

The Beats brand is also licensed to others under the Beats Audio brand and can be found in cars made by Chrysler, Dodge and Fiat, HTC smartphones and HP computers.

Apple and Beats have declined to comment on the talks. The Financial Times first reported the news.

More Biz

  • MAGA Teens Taunting Native American Elder

    MAGA Hat-Wearing Teens Harassing Native American Elder Spark Condemnation From Hollywood

    The Internet erupted in outrage Saturday after a video of young men wearing MAGA hats and attempting to intimidate a Native American man at the Indigenous Peoples March in Washington D.C. went viral. The march is taking place amid the government shutdown, which is nearing the one-month mark and has interfered with many Native Americans’ [...]

  • Leonard Klady Dead: Film Journalist Was

    Leonard Klady, Veteran Film Journalist, Dies at 67

    Leonard “Len” Klady, a former Variety reporter and critic who most recently worked for Movie City News and Screen International, has died. His wife, Beverly Walker, said he had been diagnosed with cancer in November.  Klady was born in Winnipeg, Manitoba and graduated from the University of Manitoba. He was a founding member of the [...]

  • Jordan Feldstein

    Roc Nation Seeks $11 Million From Insurer in Jordan Feldstein's Death

    Roc Nation filed a federal lawsuit Friday seeking $11 million from its insurance carrier following the death of Maroon 5 manager Jordan Feldstein. Roc Nation, a joint venture of Jay-Z and Live Nation Entertainment, partnered with Feldstein’s Career Artist Management in 2016. At the time, Roc Nation says it took out a “key man” life [...]

  • Walt Disney HQ LA

    Disney Unveils Financial Data for DTC Unit, Sets April 11 for Investor Presentation

    Disney has rejiggered its business segments for earnings reporting to make room for the new unit housing its global streaming operations. Disney on Friday released restated earnings for fiscal 2018, 2017 and 2016 to give investors and financial analysts better visibility into its spending on the launch of the Disney Plus, ESPN Plus and other [...]

  • R. Kelly

    R. Kelly Dropped by Sony Music

    Sony Music has decided to dissolve its working relationship with R. Kelly, Variety has learned. No external announcement of the move is planned in the immediate future, says a source, who added that the company took its time to wade through the issues “responsibly” and avoid legal ramifications. R. Kelly was removed from the RCA [...]

  • CAA HQ LA

    Ex-Agent Stuart Manashil Ordered to Repay CAA in Fraud Case

    Former literary agent Stuart Manashil was ordered on Thursday to repay a $23,975 commission to CAA, which he admitted he had illegally diverted to a friend. Manashil, who now runs his own management company, pleaded guilty in March 2018 to a federal wire fraud charge. In a letter to U.S. District Judge Kimba Wood, Manashil [...]

More From Our Brands

Access exclusive content