Apple Reportedly Nearing US$3.2 Billion Acquisition of Beats Electronics
Apple is rumored to be in talks with Beats Electronics co-founders Jimmy Iovine and Dr. Dre to buy the audio accessories company for US$3.2 billion.
Citing sources close to the deal, The Financial Times has reported that Apple could be close to acquiring Beats Electronics for as much as US$3.2 billion. The acquisition would be the most expensive in Apple's history, as Apple has never paid more than US$400 million for a company (NeXT back in 1996).
Apple would acquire Beats’ streaming music service, which launched earlier this year, as well its audio equipment business, which includes its premium headphones lines. The Beats management team will report to Mr Cook, said people familiar with the deal.
HTC previously acquired a 50.1% share of Beats in 2011 for US$309 million, only to sell back half of its share the following year for US$150 million. In 2013, it sold its remaining 25% share in the company back to Beats for US$265 million.
If Apple does pay US3.2 billion for Beats, it would be paying far above market value. In September 2013, Beats took a $500m investment from Carlyle, which valued the company at slightly more than US$1 billion.
Source: The Financial Times
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