The Financial Times is
reporting (paywall) that Apple is close to securing a deal to buy Beats
Electronics for $3.2 billion. It would be the biggest acquisition in
Apple’s history. The FT says the deal could be announced as soon as next
week. Singer/ model, Tyrese & Dr. Dre, himself, also confirmed it
(see his Instagram post after the break)
Beats makes fashionable
headphones and sells them at high margins, in a way similar to Apple’s
own electronics business. Beats also recently launched a streaming music
service. The company was founded in 2006 by hip hop star Dr. Dre and
music producer Jimmy Iovine.Private
equity group Carlyle recently invested $500 million in the business at a
valuation just over $1 billion. Apple CEO Tim Cook has been under
pressure to invest the company’s enormous cash pile into new products.
But sometimes, it’s easier to buy than build. Guess Forbes might
need to update their list which came out 2 weeks ago cos there’s a new
billionaire in town, lol. Congrats to the notorious Compton “gee”! I
guess its “Dre Day” all over again!
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