Apple may acquire Beats Electronics for $3.2 billion

Alex Wagner
Editorial Director of News and Content from  Omaha, NE
| May 8, 2014

Apple iPhone 5 rear

Late last year, Beats Electronics ended its partnership with HTC by buying the Taiwanese firm’s stake in Beats. Fast forward to today and a new rumor claims that Beats may be getting involved with another mobile company.

Sources speaking to the Financial Times say that Apple is in talks with Beats Electronics to acquire the headphone maker for a cool $3.2 billion. The deal will reportedly see Apple acquire both Beats Music, the recently-launched music streaming service, as well as the Beats audio equipment division that makes headphones and other audio products.

Apple’s acquisition of Beats Electronics could be made official as early as next week. However, the sources of today’s report said that because some parts of the deal have yet to be worked out, there’s still a chance that the negotiations could fall through.

This deal is still very much a rumor at this point, so it’s not clear exactly what Apple may have planned for Beats Electronics. It’s possible that Apple could use Beats Music to help beef up iTunes and make it a real competitor in the streaming music space.

Why do you think that Apple may be interested in dropping $3.2 billion on Beats Electronics?

Via Financial Times