Apple Could Finalize Beats Deal Next Week

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Dr. Dre's proclamation that he's about to be the first billionaire in hip hop may have been just a little premature because it looks like Apple won't finalize the deal to buy Beats until some time next week. Rumors claim a deal is happening, and Dr. Dre backed that up in a video at a party.

Apple and Beats are expected to wrap up their acquisition deal next weekApple and Beats are expected to wrap up their acquisition deal next week

The rumored deal will set Apple back US$3.2 billion and will give the iPhone and iPad maker control over Beats' headphones, the Beats Music streaming service, and will also reportedly include music producer and Beats executive Jimmy Iovine.

Apple hasn't commented on the deal, and if it really does come together, will make for the biggest acquisition the company has made so far.

Paying $3.2 billion for Beats seems like an expensive deal. Considering how tight Apple usually is with money, however, there must be something in the purchase that's worth such a high price tag.

[Thanks to Re/code for the heads up]

Comments

geoduck

Only time will tell
If this was a wise move
Or Apple’s AOL

adamC

Yes, people in the know sure know a lot.

FlipFriddle

Why? Might have to sell my stock after the split. This makes no sense to me.

Blissmonkey

I was shocked when the deal was first reported.  Shocked again when Dr. Dre released the video, which runs opposite to Apple’s style of divulging information (it probably rustled some feathers in Cupertino).

Apple seems to be seeking to refresh its entire approach to the music business, and Iovine has a fairly unique insight in how to tap new markets by delivering popular, expensive products while serving artists’ interests—not to mention Ioveine’s history with Apple.

Moreover, Beats brings in one billion annually, so there’s that element to consider as well.

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