Apple set to buy Beats Electronics for $3.2bn

Reports that US company is to takeover the headphone maker and music streaming distributor founded by the rapper Dr Dre.

    The US technology company Apple is reported to be on the verge of a $3.2bn acquisition of Beats Electronics, the headphone maker and music streaming distributor founded by the rapper Dr Dre.

    People familiar with the negotiations told the UK's Financial Times newspaper that the agreement could be announced as early as next week, a report posted online late on Thursday said.

    If the deal is completed, it would be the largest purchase in Apple 38-year history. Both companies declined to comment to the AP news agency.

    Apple's pursuit of Beats is the latest indication that the company is having trouble generating growth on its own.

    It already sells Beats gear in its stores, giving the company insights into how much the trendy headphones and other audio equipment appeal to its customers.

    Apple has not released a breakthrough product since Steve Jobs, its former chief executive, died in October 2011.

    The innovative void has increased the pressure on Tim Cook, Jobs' hand-picked successor, to prove he is capable of sustaining the success and growth that turned Apple into the world's most valuable company.

    Cook has shown a willingness to spend more of Apple's money than Jobs.

    Among other things, he began paying Apple stockholders a quarterly dividend and has progressively committed more money to buying back the company's shares.

    Beats success

    Beats Electronics was founded in Santa Monica, California in 2008 by Dr Dre and Jimmy Iovine. Its headphones were manufactured by Monster Cable until the two companies parted ways in 2012.

    In 2012, Beats bought streaming music service MOG, which it transformed and relaunched as Beats Music earlier this year.

    The launch was fueled by a landmark partnership with AT&T that allowed up to five family members to pay $15 a month for the service as long as they were AT&T wireless customers.

    The deal broke the industry mould of charging each person $10 per month.

    SOURCE: Al Jazeera and agencies


    YOU MIGHT ALSO LIKE

    Interactive: Take a tour through divided Jerusalem

    Interactive: Take a tour through divided Jerusalem

    Take a tour through East and West Jerusalem to see the difference in quality of life for Israelis and Palestinians.

    Stories from the sex trade

    Stories from the sex trade

    Dutch sex workers, pimps and johns share their stories.

    Inside the world of India's booming fertility industry

    Inside the world of India's booming fertility industry

    As the stigma associated with being childless persists, some elderly women in India risk it all to become mothers.