Just about two weeks ago rumours of Apple making its biggest acquisition ever went a little nuts. Apple was thought to be buying up Dr Dre’s headphone company, Beats for about $3.2 billion.
After Dre claimed to be the first billionaire rapper the rumours began to snowball more and more but it kind of petered out before anything came from it. Now the rumour mill has started up again and a report published on Tuesday 27 says Apple is going through with the deal but is cutting the price.
It’s thought Apple has dropped its offer to $3 billion after it learned the streaming music site Beats Music only had 111,000 paid subscribers in March. The company initially thought it had more and Apple wants to use it to boost iTunes Radio
Beats Music’s main competitor is Spotify which has over 10 million paying customers and 30 million regular users on its free service.
To the everyman that drop from $3.2 billion to $3 billion may not seem like much of a jump but it’s unclear whether Beats will accept the lower offer just yet. If it does we expect to see some official news come out of either camp by the end of the week. Either that or the doctor himself may post another drunken bragging clip on the internet.
The headphone division of Beats also managed to bring in $1.3 billion in 2013 so it’s no surprise Apple wants to buy up the business as well.
But we don’t exactly think the deal will be about the headphones themselves. If you haven’t already follow on to our piece about why Apple really wants to buy Beats.
by jamesp via Featured Articles
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