Apple all set to gobble-up Beats Electronics for a staggering 3.2 billion
Apple is all set to buy Beats Electronics founded by Dr. Dre and record producer Jimmy Lovine. According to reports, $3.2 billion takeover is going to be Apple’s biggest takeover till date and it will strengthen their line-up of electronics, to stiffen the competition against Spotify and Pandora. If the deal goes through then Apple will have full control of Beats audio hardware division and their subscription-based music streaming service.
This deal that is rumored to be finalized next week, will surpass Apple’s $404 million deal to buy NeXT Computer Company which is their biggest deal on paper so far. If this deal is done, it will be a huge leap for Apple. According to Financial Times the deal is very much on the cards as Apple is looking to invest 10 figures worth of money on the right company. And what better than to invest in a high-end company like Beats Electronics.
Beats Electronics products are estimated to have annual sales of more than $1.5 billion and last year private equity firm Carlyle Group invested $500 million in Beats, valuing the company at more than $1 billion.
According to Timothy D. Cook, CEO Apple Inc.
We are expanding Apple’s products and services into new categories, and we are not going to underinvest in this business.
UPDATE: Apple has indeed purchased Beats Audio hardware and Beats Audio Music for $3.2 billion, with $2.6 billion in cash and $400 million in stocks.