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Apple in Talks to Buy Dr.Dre’s Beats for $3.2 Billion
RnB/Hip Hop | Friday 9th May 2014 | Annalisa
According to reports, the computer giants have struck up a $3.2bn (£1.9bn) deal with music streaming and manufacturing company Beats Electronics, making it the largest business proposition ever made by Apple. The popular and fast-growing music manufacturer, Beats, founded by Dr. Dre and music producer Jimmy Lovine, represents a large portion of the headphone market that apple can’t resist getting their hands on.
Taking control over Beats’ products and music streaming service would bring Apple closer to their goal of contributing to every part of consumer entertainment and put them in league with musical competitors such as Spotify and Pandora. This would mark a significant change in Apple’s strategy and open a whole list of new commercial possibilities given Beats’ popularity and valuable brand image.
Apple’s CEO Tim Cook said earlier in the year “We have no problem spending 10 figures on the right company, for the right fit that’s in the best interests of Apple in the long term”.
According to the Financial Times, a deal could be made as early as the beginning of next week. The mammoth transaction would see Dr. Dre become one of the few entertainers to gain billionaire business status along with the likes of Oprah Winfrey and Steven Spielberg.
As for Apple, it’s clear that their plans for the iUniverse are growing more and more plausible as the days go by; that won’t stop me using my iPhone any time soon though.
