Apple, Inc. is in talks to buy Beats Electronics LLC, a company known for its high-end headphones, for $3.2 billion. This will be the iPhone maker’s largest purchase of all time.
First Big Purchase
According to previous reports, Apple has never acquired big companies with multibillion-dollar valuations. But it’s now taking a huge leap under its chief executive, Tim Cook.
Apple executives have admitted that its brand needed to reinvent itself, after its competitor, Samsung, enjoyed skyrocketing sales.
People familiar with the negotiations said the details are yet to be announced.
Earlier this year, Beats started a subscription-music service to Spotify called Beats Music.
Paid album downloads in iTunes Store have significantly reduced, and a subscription service could strengthen Apple’s music business.
Beats by Dre
Beats, a popular headphone manufacturer and music-streaming operator, was founded by hip-hop star Dr. Dre and music industry veteran Jimmy Iovine. The two created the high-end headphones because of the “poor sound quality of iPods and iPhones.”
The “Beats by Dre,” which start around $300 per pair, are popular with celebrities and rappers.
Beats also manufactures in-ear headphones and the Beats Pill, a Bluetooth speaker.