Apple close to buying Beats Audio for $3.2 Billion (Update: Its Done!)
Today it is being reported that Apple is in negotiations to buy Beats Audio for an estimated price of about $3.2 Billion. Beats Audio is a premium headphones company with its own music service akin to iTunes Radio. HTC had originally purchased 50% stake in Beats back in 2011 for about $300 Million and started offering free headphones with their high-end smartphones. But soon the cost became prohibitive, and HTC divested its holding in Beats.
Beats was co-founded by Dr. Dre and Jimmy Iovine. At last earnings call, the company was worth about $1 Billion, so it seems Apple is willing to overpay or maybe Beats Music might have sprung up that extra cash.
Update: Apple has acquired Beats equipment and services company for $3.5 Billion, making Dr. Dre the first Hip Hop Billionaire. Beats Music, the online streaming service will become a part of iTunes Radio but that's the extent of our knowledge at the moment. Would be see beats branded or co-branded headsets being packaged with the next iPhone? Probably not, but Apple might use their expertise to make their own Earpods better.