Feeds

$3.2bn Apple deal would make hip-hop mogul Dr Dre a BEEELLLIONAIRE

$3.2bn acquisition would be largest in Cupertino's history

The essential guide to IT transformation

Insiders claim that Apple is close to acquiring Beats Electronics, the headphones-and-streaming-music company founded by music mogul Jimmy Iovine and rapper Dr Dre, in what would be the largest purchase in Apple's history.

Separate reports by Bloomberg and the Financial Times both value the proposed deal at $3.2bn.

Previously, the most Cupertino ever shelled out to acquire another company was when it paid $404m to snap up NeXT in 1997 – that's $595m in today's dollars – which was the deal that brought fanboi icon Steve Jobs back into the Apple fold.

Apple wouldn't be the first tech company to lob some cash Beats' way. In 2011, Taiwanese smartphone maker HTC invested $309m for a 50 per cent stake in the company, and while it sold back half of its stake a year later, it remains Beats' largest single shareholder.

According to the FT report, Apple would be buying Beats' audio equipment business and its streaming music service, which launched in January. Both would be valuable assets.

Aside from flogging headphones, Beats makes a fair amount of coin licensing its audio enhancement technology to electronics vendors. HP offers a whole range of products that boast of onboard Beats Audio, as did HTC when it was cozier with the company. More recently, BeatsAudio speakers have appeared in some Chrysler cars.

It's not clear whether the BeatsAudio brand would become an Apple exclusive under the deal, but we certainly haven't seen many vendors advertising AuthenTec fingerprint sensors since Apple bought that company for $350m in 2012.

And then there's Beats Music, the streaming service currently headed by former Yahoo! Music chief Ian Rogers. It seems likely that Apple plans to merge it with its own iTunes Radio, which launched in 2013 but so far hasn't managed to win much market share away from industry leader Pandora.

Sources say the deal is far from done, and it could yet be scrapped if certain details can't be hammered out. But if it does go through at the reported price, Dr. Dre will have another reason to pop the Cristal; as recently as September 2013, Beats accepted a $500m investment from the Carlyle Group, placing its valuation at just over $1bn – a third of what Apple reportedly plans to pay. ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.