Apple looking to acquire Beats Electronics for $3.2 billion

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Comparing Apple’s acquisition record to any other high-tech company is weird, while Microsoft, Facebook and Google have all had multi-billion dollar acquisitions, Apple’s highest price for a company is $500 million.

This may change in the near future, according to multiple sources Apple is currently in talks with Beats Electronics, interested in acquiring the company for $3.2 billion in cash and stock.

The news has been backed up by Dr. Dre, co-founder and owner of Beats Electronics, after Tyrese Gibson posted a Facebook video revealing Dr. Dre will be the first billionaire rapper after the $3.2 billion deal.

There is still nothing official from either side, Apple may be waiting for everything to be settled before announcing it. This has come out of the blue and it looks like Tim Cook is finally ready to make a big acquisition.

What does Beats Electronics bring to Apple? Well, apart from an audio brand that is known worldwide, they recently acquired MOG, now Beats Music, a music streaming service like competes directly with Spotify and Rdio.

This might be the major reason Apple is looking to acquire Beats Electronics, the music streaming service could be turned into another branch of iTunes, allowing users to stream, create radio stations and buy music.

The only problem with this is why Apple needs Beats Music to make a streaming service successful, surely if Apple wanted they could just develop their own “iTunes Stream” service and sell it to iOS users for a cheaper price than competitors.

Beats headphones may be one of the most popular brands in the world, but we have no clue about Beats’ revenue this year and if they are still making enough revenue to deserve a $3.2 billion acquisition price, it looks like they do since Dr. Dre is already claiming to be the first billionaire rapper.

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