Photo Courtesy of Beats By Dre
Apple looks ready to acquire headphone company Beats Electronics for 3.2 Billion dollars which would make it the most expensive acquisition is Apple’s History. This news comes as a bit ironic considering the formation of Beats Electronics was in direct reaction to what the creators perceived as diminishing sound quality coming from Apple’s music devices.
In addition to the high-end headphones produced by Beats, Apple will also acquire their new streaming music service. The deal marks the largest move made so far by current CEO Tim Cook since the death of co-founder and tech icon Steve Jobs more than two years ago. It is unknown whether the current owners of Beats will continue to have a role in their company’s development after the purchase.
Beats Electronics began in 2007 by Music Mogul Jimmy Lovine and producer-rapper Andre Young aka Dr. Dre. By 2008 their $300 Beats studio model grew into a wildly popular high end headphone thanks to endorsements from pop culture titans Lady Gaga, LeBron James, and Justin Bieber. In the subsequent years headphone sales grew due to their unrivaled sound quality and the series of musical ads featuring Aloe Blacc and his hit song “I’m the Man“.
If the deal does go through, the sell would make Dr. Dre hip hop‘s first Billionaire. Prior to Producing, Dre was one of the pioneering rappers of the 80’s and is largely responsible for making the genre what it is today. Throughout the decades he has remained highly influential as a producer and mentor to such high profile artists as Eminem, 50 Cent, Jay-z, and Kanye West.
Their is much belief that the buyout may be too high, as only 9 months ago half of the company was bought from electronics maker HTC for a mere $265 million. Then again, The Verge postulates Beats has also exponentially grown in the past few years most notably in quintupling its revenue from 2010 to 2012. There’s also the belief that Beats’s music service design will provide an opportunity for Apple to compete more efficiently with companies such as Spotify. Recent attempts by Apple in iTunes Radio and iTunes Match have been seen as disappointments by the music industry
The official announcement of the deal is said to come within a week. Until then, the speculation will continue as the biggest merger in Apple’s history comes around the bend.