Apple set to buy Beats for USD 3.2 billion - report

News Broadband Global 9 MEI 2014
Apple set to buy Beats for USD 3.2 billion - report
Apple is in advanced talks to acquire headphone maker and music streaming operator Beats Electronics for USD 3.2 billion, Apple's largest purchase to date, people familiar with the matter told the Financial Times. The deal could be announced as early as the week of 12 May, but some details have still not been agreed and the talks could still break down. 

Apple is expected to buy Beats' streaming service and its audio equipment business, with Beats' management team reporting to Apple CEO Tim Cook. Beats holds a leading position in the market for premium headphones, but its real value to Apple is its potential to revitalise Apple's coolness factor as iTunes' popularity has waned and the iPhone brand has been hit hard by Samsung marketing campaigns. 

Apple is paying a high premium, as Beats was valued at over USD 1 billion when it secured a USD 500 million investment from Carlyle last September. Neither Apple nor Beats would comment on the matter.

Categories:

Internet,  Mobile

Companies:

Apple,  Beats

Regions:

Global

Countries:

United States

Tags:

Consumer devices, Wireline, Wireless, Consumer, Digital Music, M&A buyouts & divestments

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