Apple is reportedly in negotiations to buy audio company Beats by Dre electronics for $3 billion. The deal was first reported Financial Times a few days ago and has since been upped by Beats owners to sell for $3.2 billion. If this deal goes through it will be Apple’s largest ever. Although, the price tag seems a bit steep, it will be beneficial for Apple as their sales are flagging due to a lack of new products on the market (in Apple Stores), according to investor note from Needham analyst Charlie Wolf obtained by Apple Insider.
The “Dre” in Dre Beats has been solidified by notorious West Coast mogul Andre Young, better known as Dr. Dre. According to Washington Post the headphones are a streetwise fashion statement with a signature “B” on the ear, are as popular with teens as they are with celebrities. This, making their price tag not seen as a deficit for the company but rather an asset to make profit from. However, Apple will have some competition with Microsoft, Google, and Samsung who all would love to get their hands on the deal.
Dr has done a great job diversifying his assets. He does music, and has created a product for anyone in the world to use, even those who choose not to listen to his music in particular. Dre has built his brand and expanded his empire since he started in entertainment 1984. 30-years later he is still a force to reckon with. He is definitely a role model in the music industry and now in business if this deal lands.
Sources: Washington Post; Pictures courtesy of ubergizmo.com , billboards.com