Apple reportedly in talks to acquire Dr Dre's Beats Electronics
Apple is reportedly in talks to buy Beats Electronics, the maker of well-known headphone brand Beats by Dr Dre.
Takeover: Apple is reportedly in talks to acquire Beats
The Financial Times reported that the companies were in talks and if a deal is complete Apple could pay as much as $3.2bn for the business, which was founded by Jimmy Iovine and hip-hop artist Dr Dre in 2006.
While mostly known for its headphone and speaker range, Beats recently launched a streaming music service, Beats Music, which competes against Apple’s iTunes.
The move would be a departure from previous policies under Steve Jobs, who was more reluctant to make large acquisitions. If the deal goes through, it would be Apple’s biggest to date.
When Apple CEO Tim Cook announced the company’s Q2 earnings last month, he said that Apple had bought 24 companies in two years, but added: “We are not in a race to spend the most or acquire the most. We’re in a race to make the best products that enrich people’s lives.”
James McQuivey, a Forrester analyst, told the BBC that the potential deal was “puzzling”, adding: “You buy companies today to get technologies that no one else or customers that no one has. They must have something hidden under the hood.”
Last year, Carlyle invested $500m in Beats and valued the company at more than $1bn.