Apple is gearing up to the make its largest acquisition yet. The company is in talks to acquire Beats Electronics for a deal that is said to rake in $3.2 billion.
Beats Electronics has been around for many years, founded by the hip-hop artist Dr Dre and music producer Jimmy Iovine. The company has distinguished itself in the music hardware market by offering headphones and other accessories which feature excellent design. In the past, Apple has partnered with Beats Electronics to sell their earphone products.
As a result of this expected deal, Apple will get a number of new tools to boost up its presence in the digital music industry. The audio technologies and the recently-launched streaming technology from Beats Electronics may soon become a part of the iTunes ecosystem.
Interestingly, Tim Cook seems directly involved and interested in this deal. Once the acquisition finalizes, the senior management of Beats Electronics will be reporting directly to Cook. In fact, some reports have it that Iovine will be directly collaborating with Tim Cook on ‘creative matters’ as a special adviser.
This is also a symbolic move on the part of Apple, denoting that the company is as ready as others like Google and Facebook to make multi-billion dollar acquisitions. In an increasingly competitive online music space, Apple is finally gearing up to maintain its dominance. And the acquisition of Beats Electronics may allow Apple to get that extra edge that will matter in the coming days.
Source: Bloomberg
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