Apple sets its sight on Beats, for a whopping $3.2 Billion
Beats electronics, founded by rapper and legendary music producer Dr. Dre, famous for its ‘Beats by Dr. Dre’ line of trendy headphones is up for sale, and Apple is looking to buy.
Right now both companies are silent about the details of the deal, and there is speculation as to whether anonymity is part of the agreement. Nevertheless, it’s no secret that Apple is in the market for a subscription-based music service to go hand in hand with its ‘iRadio’ ad-based subscription.
More on the deal, analysts question if Beats actually worth that much, I mean it was valued at $1 billion just last September.
Well, Beats recently received a $500 million investment from Carlyle Group, at the time the company was valued at around $1 billion. It also managed to buy back a 24.84 percent stake which was held by smartphone maker HTC Corp.
This is a change from Apple’s usual (yet unofficial) policy of steering clear of billion-dollar acquisitions, preferring to develop its products in-house. Maybe it’s in response to the pressure being placed on it to try and revitalize growth coming at a time when iPhone sales slow in what seems to be a rapidly maturing market.