Apple is in the final stages of planning to acquire Beats Electronics for $3.2 billion according to this report. The company is behind the popular Beats by Dr. Dre headphones founded by rapper Dr. Dre and the music executive Jimmy Iovine. Not a bad exit strategy for a new company that’s just 6 years old. If this deal goes through this would be the biggest acquisition in Apple’s history. But with $159 billion in its coffers I guess they are not going to feel a pinch.
The deal would also include the new Beats Music streaming service, which was introduced earlier this year as a competitor to Spotify and Pandora. The Beats service makes millions of songs available for streaming over the Internet. Together with iTunes store this would definitely be a game changer in how Apple serves its media hungry customers as they will have two huge platforms together in which to capture the music downloads market.
Annual sales of Beats products, which also include speakers and other audio items, have been estimated at more than $1.5 billion.