Apple in negotiations to buy Beats Audio for $3.2 billion?

Apple in negotiations to buy Beats Audio for $3.2 billion?
Apple is in negotiations to buy Beats Audio for $3.2 billion, according to rumors circulating on Thursday afternoon. The deal could be announced as soon as next week. If announced, it would be the largest acquisition ever by Apple. The maker of premium headphones recently started a streaming music service that competes with Apple's own iTunes Radio.

HTC had originally purchased 50.1% of Beats in 2011 for $300 million and started offering phones with special Beats Audio software and branded earphones. Eventually, HTC stopped offering the earphones due to cost. In two transactions in 2012 and last year, the Taiwan manufacturer divested its holdings in the company.

Beats was founded by music producer Jimmy Iovine, and rapper Dr. Dre. Including a $500 million investment from the Carlyle Group, Beats Audio recently had a value of $1 billion, which means that Apple is either about to overpay big time for the company, or Beats Audio has tripled in value over the last few months.

source: NYTimes via BusinessInsider

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98 Comments

1. toiletcleaner

Posts: 224; Member since: Oct 10, 2012

iBeats? no iThanks

31. akki20892

Posts: 3902; Member since: Feb 04, 2013

imee itoo

97. sgodsell

Posts: 7521; Member since: Mar 16, 2013

Now we know why Beats took back all the beats stuff from HTC and bought back 265 million dollars off of HTC recently. They knew they were going to sell to Apple. How good would it be if the competition was also using beats on their phones.

98. sgodsell

Posts: 7521; Member since: Mar 16, 2013

I should have said beats bought back all the shares that HTC bought from beats originally. Which was only a few months ago. I think they beats was in talks with Apple at that time and knew that they were going to strike a deal.

49. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Toilet cleaner Wth lmfao what a name and avatar

68. vincelongman

Posts: 5745; Member since: Feb 10, 2013

Beats by Jobs?

81. Nexus_bear

Posts: 32; Member since: Nov 19, 2013

I Agree!!! I will sell my Mixrs and Pro head phones both!!! no!!!

84. SleepingOz unregistered

Why not? Both are overhyped and overpriced POS.

94. TheLolGuy

Posts: 483; Member since: Mar 05, 2013

Yeah, I'd have to agree to be honest. Beats Audio must've been worth that 1 billion due to branding sales, because their products really aren't above any of the others...

2. shead202

Posts: 52; Member since: Nov 02, 2013

HTC actually invested 300 million and made 415 million in return. I don't like Beats personally but I think it's a great deal for Apple. It's like the rich gets richer with this type of deal.

3. sipha

Posts: 440; Member since: May 12, 2012

Dr Dre may finaly pass JayZ and P.daddy's net worth with this..

4. nctx77

Posts: 2540; Member since: Sep 03, 2013

Cook/Dre, TAKE MY MONEY!!!!!!!!

13. maccess

Posts: 742; Member since: Jan 16, 2013

Very sad..

74. InspectorGadget80 unregistered

very very sad and he will be broke. 300$ could help pay bills and lots of other stuff.

42. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

That's the problem; their going to take your money.

5. StanleyG88

Posts: 240; Member since: Mar 15, 2012

Typical Apple, why compete when we can just buy the competition.

9. Sauce unregistered

Ouch….. Ninety, take it easy! Don't smack this ignorant fool around that hard lol. He'll call his anti-Apple crowd on you. Matter-a-fact, I think he already did.

11. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

No worries..it's wiki so it must be fake :)

61. engineer-1701d unregistered

Its matter or fact in your case

15. Zero0

Posts: 592; Member since: Jul 05, 2012

Difference: Google typically buys for technologies. Apple is buying a brand. Beats headphones are not particularly good from an audio standpoint. They have a big name and solid industrial design. Incidentally, Apple has both of those things on their own. Apple could crush Beats if they really wanted to do so.

18. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Oh and google bought NEST for the technologies? They could also crush them if they wanted. Dude you should all relax and stop crying over every apple related news. All big tech companies buy smaller ones, For their own reasons. And you and me have no idea what exact those reasons are and probably never will.

21. StanleyG88

Posts: 240; Member since: Mar 15, 2012

NEST did not compete with Google.

30. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Well over 90% of tech buyouts is to give the smaller company an exit strategy so the giant VC/investment bank machine keeps running. This is likely the case with Apple/Beats as well.

40. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Call me when they have three semiconductor firms in the fold designing the best mobile processor on the planet.

39. kryme

Posts: 469; Member since: Oct 24, 2013

lol that was harsh..... tho i get ur point..... but google is buying start ups.... apple buying company to avoid competition..... youtube waze android there were all start ups... beats audio could bring the heat to apple and they dont want that.... hope u r smart enough to understand the difference.... both campany buy start ups but apple buying beats is just to kill competition

41. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

coughcoughMotorolacoughcough... sorry..got something stuck in my throat..

46. Run.n.Gun

Posts: 45; Member since: Nov 06, 2013

Probably a piece of apple

50. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Lmfao That was epic +1

55. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Funny you mentioned Waze, I think you should look it up again. Waze was competition.

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