Advertisement

Apple near deal to buy Beats Electronics for $3.2 billion

Apple near deal to buy Beats Electronics for $3.2 billion
Dr. Dre, front, and Jimmy Iovine, co-founders of Beats Electronics. (Damian Dovarganes / Associated Press)

Apple Inc. is nearing a deal to buy Beats Electronics LLC, the premium headphone maker that recently launched a subscription streaming music service. 

The Cupertino tech giant would pay $3.2 billion for Beats, according to a person with knowledge of the talks, which would make it the biggest acquisition in Apple's history if the deal closes.

Advertisement

The acquisition agreement has not been finalized, but the companies could make an announcement next week, this person said.

A representative for Beats declined to comment. Representatives for Apple could not be immediately reached for comment.

Advertisement

Founded in 2008 by hip-hop star Dr. Dre and Interscope Geffen A&M Chairman Jimmy Iovine, Beats in January launched Beats Music, a streaming music service, to rival the likes of Swedish company Spotify, Pandora Media Inc., Google Play Music and Apple's own iTunes Radio

Advertisement
For Apple, the deal would add revenue from Beats' popular, flashy headphones and give it a gateway into the subscription music industry. Last year, Apple launched iTunes Radio, a free, ad-supported streaming service. 
Advertisement
Beats Music charges $10 a month for access to its song library on the Web and mobile devices. The company also partnered with AT&T to offer a $15-a-month family plan. It has not disclosed its number of subscribers. 
Advertisement
Investors in Beats include asset manager the Carlyle GroupLen Blavatnik's Access Industries and Universal Music Group. 
Advertisement

The talks were first reported by the Financial Times.

Advertisement
Advertisement