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Friday, May 09, 2014
Apple To Buy Beats For $3.2 billion

Apple is close to a $3.2 billion buyout of Beats Electronics, the firm founded by rapper Dr. Dre that makes headphones and other products, news reports said Thursday.

Sources have confirmed to Reuters and Bloomberg the transaction, which would be the largest one tin Apple's history.

However, negotiations are still taking place, according to the reports, meaning that a final deal could still fall through.

Founded by rapper Dr. Dre, Beats Electronics is best known for its "Beats by Dr Dre" line of trendy headphones. The company has already launched a successful music service.

Apple is already a large music seller through iTunes and the iRadio service, so it is not clear how an acuisition of Beats Electronics would benefit the iPhone maker, as there is an overlap between the two companies' customer base.

Taiwanese smartphone maker HTC used to own a 51 percent piece of Beats. The company sold back 25 percent of Beats in 2012. Universal Music Group, the world?s largest music company, also owns a 14 percent stake in Beats.

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