Apple Acquires Beats Electronics for $3 Billion
Apple has officially purchased the audio software and hardware company, Beats Electronics for $3 billion ($2.6 billion in cash, $400 million in stock). The company was started by co-founders Jimmy Iovine and Dr. Dre (Andre Young), and has become known for its high quality headphones and audio playing devices, as well as its mobile app that has recent become very popular among music fans.
This purchase was most likely the result of a reported decrease in iTunes sales because of apps like Pandora and Spotify that allow users to play music with a subscription based services, rather than paying per song. This purchase, when it is fully completed, will be Apple’s largest purchase ever. (4)