14 DAY TRIAL // Apple is on the cusp of making its biggest acquisition ever. People familiar with the company’s plans say it is closing in on signing a deal that would see the Cupertino giant engulf Beats Electronics, the company founded by music producer Jimmy Iovine and rapper Dr. Dre.
Beats Electronics not only sells its own branded audio gear, which audiophiles have embraced for the high sound quality, but also a music streaming service that may help revitalize Apple’s own iTunes Radio, should the deal go through.
People familiar with the negotiations tell the subscription-based Financial Times that the papers could be signed as early as next week, but warn investors that the two parties have yet to come to terms on some aspects of the acquisition, which may delay or even cancel the deal. None of the two companies would comment on the rumor.
Although Apple ships some pretty decent headphones with its iPhones and iPods, the company also sells Beats audio gear through its online and retail stores. For example, the Beats Solo HD headphones retail for $169.95 in the United States and €169.95 in Europe.
Listed as one of the company’s favorite accessories, “Beats Solo HD headphones are made for music lovers looking for high-definition headphones that look as good as they sound,” according to the description on the online Apple store.
“These headphones combine advanced driver technology and premium design that deliver legendary Beats by Dr. Dre sound and are lightweight and durable.”
“These are the only Beats by Dr. Dre that come with not one, but two speakers inside each can,” reads the marketing material. “That means you get crystal-clear highs and deep, rumbling lows in high definition.”
Apple says the headphones are almost impossible to break, being made from “a super-durable, flexible material, reinforced with a metal strip to make sure it never comes apart.”
Much like the headphones that ship with Apple’s iDevices, the Beats Solo HD allow users to control playback using a remote control placed on the cord. The remote also lets users take calls and adjust the volume. The Cupertino giant could end up rebranding the Beats headphones following the acquisition.
The deal will also give the company years of experience in “wearable technology,” according to the FT report.
Tim Cook recently told the press that Apple will go after any company as long as the acquisition makes sense, and that the iPhone maker is not shy of spending huge sums of cash on long-term investments.