Apple nears deal to buy Dr. Dre's Beats Electronics for $3.2 billion
Apple is looking to go big on Beats Electronics.
The tech juggernaut is close to buying Dr. Dre's headphone company for $3.2 billion and if the deal goes through, it will mark the largest acquisition in Apple's history. The Financial Times said Thursday that the deal could be finalized as early as next week, though contract details are still be worked out.
Beats, headquartered in Santa Monica, was created by Dre and music producer Jimmy Iovine in 2008. The company initially created headphones, which surged in popularity among young people. Beats expanded their brand this year by starting a music streaming service.
The Beats acquisition is driven by Apple's desire to up their “cool” factor with consumers with Apple executives saying that their brand needs revitalizing.
Interestingly, Dre and Iovine created Beats Electronics after becoming frustrated with the poor quality of the headphones packaged with iPhones and iPods.