Apple will soon acquire Beat Electronics for an estimated $3.2 billion. The acquisition should be announced sometime next week. This purchase will be Apple’s largest acquisition ever.
Jimmy Iovine and Dr. Dre co-founded Beats Electronics seven years ago which bagan the high-end headphones craze. Ironically Dre and Iovine came up with the idea for Beats because of the decline in sound quality ushered in by Apple’s own iPod and the MP3 era. The two set out to market headphones that reproduce, Iovine said, “as close to the sound I hear in the studio as possible.”
They introduced the original $300 Beats Studio model in 2008 and since then, Beats has expanded its lineup to include other headphones with the help of Lady Gaga, LeBron James and Justin Bieber, as well as portable speakers and even music-processing technology for cars, computers and smartphones.
HTC bought half the company in 2011 for $300 million, and Beats Audio was introduced to cellphones. Last year, Beats bought back all of HTC’s share of the company and got a reported $500 million investment from The Carlyle Group.
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