According to media reports, there are talks of Apple finalising a deal to buy Beats Electronics for a whopping $3.2 billion.
The deal should be announced next week, according to The Financial Times who were the first to report of the talks. If the deal is true, it will be Apple’s biggest acquisition yet, and will turn away from their normal strategy which has traditionally stayed away from high dollar acquisitions
Full details of the deal still haven’t been revealed according to the Financial Times, but the word on the Street is that Apple will take control of Beats’ Headphones (hardware products) and its streaming music service.
James McQuivey, an analyst with Forrester said in his blog that “This is really puzzling” Why would Apple want to buy into Beats, when they both offer similar technologies in the music industry?. Beats has recently released its streaming music service earlier this year and Apple already has its iTunes store and iTunes Radio. He then stated that “They must have something hidden in the hood”.
Beats’ is well known for it’s celebrity backed campaigns, so it will be interesting to see how Apple will approach this strategy.