Legal News

Apple in Talks to Buy Beats Music Brand for $3.2 Billion
Download PDF

Apple is in discussion to buy Beats Electronics, according to sources briefed on the talks. Beats Electronics, the company that provides the fast growing, Beats by Dre headphones, is in talks with Apple for an acquisition of $3.2 billion. It would be the biggest in Apple’s history.

In the deal, the new Beats Music streaming service will be included. That could lead to Apple transforming it’s method to music, after opening it’s iTunes download store more than ten years ago.

  
What
Where


The deal hasn’t been sealed, and negotiations could yet crumble, according to sources close to Apple. If completed, the sale could be announced as early as next week. Apple and Beats declined to comment.

Over the past few years, Apple’s revenue has declined, but the deal could put the company, which only last year released it’s streaming product, iTunes Radio, on the forefront of streaming music.

The purchase of Beats would put Apple on top of it’s game, plus the product and brand was founded by the rapper Dr. Dre and music executive Jimmy Iovine. Apple has been under pressure from investors to release new products after the iPhone and iPad success, but no new products have yet to be released.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The $3 billion deal would be the biggest for Apple. It’s co-founder Steven P. Jobs, preferred smaller deals, but before his death, Timothy D. Cook took over as chief executive of the company, and since then Apple has attained 24 companies in the last 18 months.

“We are expanding Apple’s products and services into new categories, and we are not going to under-invest in this business,” Mr. Cook said in the earnings call.



In 2008, Beats began to sell it’s bass-heavy headphones. They quickly became a fashion statement as some fetch as much as $450 each. Annual sales of Beats products have been estimated at more than $1.5 billion. A private equity firm, Carlyle Group invested $500 million in the company, making Beats valued at more than $1 Billion.

Ben Bajarin, a consumer technology analyst for Creative Strategies, said that a purchase of Beats would not be a big departure from Apple’s strategy of buying companies for their technology and talent to help develop future products. In other words, it is unlikely Apple would just ship Beats headphones with an Apple logo on them.

“This would have to fit into a much longer, more innovative strategy around perhaps the hardware and the service,” Mr. Bajarin said.

According to earlier reports from The Financial Times, the Beats deal suggests that Apple may want to shake up its approach to digital music. Apple is still the biggest seller of downloads, operating in more than 100 countries around the world.

Check here for the latest Apple jobs.

Image credit: watchloud.com



 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Defense Attorney with 3-4 years of litigation experience

USA-CA-San Francisco

San Francisco office of our client seeks defense attorney with 3-4 years of solid litigation experie...

Apply Now

Attorney with 3-7 years of litigation experience

USA-IL-Chicago

Chicago office of our client seeks attorney with 3-7 years of litigation experience. The candidate s...

Apply Now

Mid-level IP Litigation Attorney with electrical engineering experience

USA-CA-San Francisco

San Francisco office of our client seeks mid-level intellectual property attorney with 3-5 years of ...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Trust Administrative Associate / Office Manager

USA-NV-Reno

FIRM OVERVIEW: Laurel Trust Company (LTC) a retail trust company under organization in Reno, Nev...

Apply now

Associate Attorney

USA-NV-Minden

Over my objection, and after nineteen years together, my 69 year old partner is retiring.  I ne...

Apply now

Part-time Paralegal / Legal Assistant

USA-GA-McDonough

Family Law and Criminal Defense law firm is seeking part-time (20-30 hours per week w/ Flexible sche...

Apply now

Legal Assistant (Dallas)

USA-TX-Dallas

We are a growing firm in need of an experienced, reliable, flexible, and proactive litigation Legal ...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top