Apple close to buying Beats for $3.2 billion

Recording artist Dr. Dre wears a pair of Beats headphones as he attends the 2010 season opener baseball game between the New York Yankees and Boston Red Sox in Boston

Apple Inc is close to paying a record $3.2 billion for Beats Electronics, two people with knowledge of the matter said, an expensive foray into music streaming and headphone gear that would mark a departure for the usually cash-conservative iPhone maker.

Both companies are hashing out details and the envisioned deal could still fall through, one person told Reuters on condition of anonymity because the discussions were private.

A second source familiar with the matter told Reuters that Apple was in the market for a subscription-based music service to complement its “iRadio” ad-based offering, launched in 2013 as part of an attempt to jump into a music-streaming arena then split between a handful of startups such as Pandora Inc.

 

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