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# What's Behind Apple's Acquisition Of Beats Electronics

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## Video: What's Behind Apple's Acquisition Of Beats Electronics

[Watch (HLS stream): What's Behind Apple's Acquisition Of Beats Electronics](https://cdn.jwplayer.com/manifests/v6SFTucq.m3u8) (1:40)

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_Published 2014-05-09. Apple is said to be in talks with Beats Electronics about a possible acquisition. The $3.2 billion price tag would be Apple’s largest single acquisition to date. From the iconic Beats headphones to streaming music, the buyout makes a lot of sense._


---

Jul 27, 2023 4:37 PM UTC

---

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## Transcript

Apple is said to be in talks with Beats Electronics about a possible acquisition with a $ 3. 2 billion dollar price tag, that would make it Apple's largest single acquisition to date. A merger would net Apple's streaming service Beats' music as well as the Beats' brand. Probably know best for it's stylish headphones. The Beats management team would reportedly work under Tim Cook. According to the New York Post, Beats co- founder Jimmy Iovine would act as a direct advisor to Cook on creative matters. With this acquisition, Apple would buy itself further into a market it left mostly untouched until last year.

Its iTunes radio service debuted in September to compete with the likes of Pandora and Spotify. Since then, it's grabbed some 8 % of the market, a share that could increase with the addition of Beats Music. Dr. Dre seemed to confirm the acquisition, in a Facebook video posted by actor Tyrese Gibson, which was later deleted. But not before a copy made it to YouTube. [ INAUDIBLE ]. The first billionaire in hip hop, right here from the west coast. But what of those iconic headphones? Analysts tell the New York Times, despite Beat's popularity Apple will probably rework its hardware to integrate more closely with existing products.

Since Beats' signature product is the headphones, Times speculate wearable tech could also be the goal here. The deal could pose a threat to Google, Facebook, and other companies that are forging ahead on smart glasses and watches. That is if an acquisition goes down in the first place. Neither Apple nor Beats Electronics have officially commented on the deal. Thanks for watching. I'm Cliff Judy

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