According to various reports, Apple is set to acquire Beats Electronics in a 3.2 billion dollar acquisition that could be officially announced early next week. Ironically enough, Beats Electronics was founded seven years ago, in response to the diminished audio quality associated with mp3 players, most notable the iPod.
Beats was founded by music executive Jimmy Iovine and hip-hop artist Dr. Dre, producing headphones that ultimately spurred a number of companies to manufacture high-end headphone products. The original model launched in 2008, and has been rebranded several times, with the help of celebrities like Lady Gaga, Justin Bieber, and LeBron James.
Beats has also expanded over the years, producing portable speakers, car stereo equipment, and music-processing technology. Last year, the company also launched Beats Music, about which Iovine commented, “Now, it’s all about completing a circle and giving people the full experience of music.”
No telling exactly how Apple would use their newly acquired technology, though this could usher in a new era of high-sound quality portable music players. However, as HTC sold their shares in Beats for only $265 million last year, it seems Beats Electronics will be making a pretty penny on the Apple transaction.
Is this a wise investment for Apple, or a foolish one? Let us know what you think.
[Via USA Today]