Apple to buy Beats for $3.2bn to get 'cool' back, claim reports
Apple is reportedly on the cusp of buying headphone maker and music streaming service Beats Electronics for $3.2bn (£1.9bn), a move that would represent its largest ever acquisition.
Beats by Dre: Apple is reported to be mulling the acquisition of the parent company
The Financial Times reports that the deal could be announced next week if it does not fall apart, as some key elements are yet to be agreed.
It is understood the Beats management team will report directly to Apple chief executive Tim Cook
The Financial Times argues the deal is an attempt by Apple to revitalise its "cool" image in the face of a marketing onslaught from Samsung.
Emails released for Apple’s patent trial with Samsung show that marketing boss Phil Schiller considered changing long-standing ad agency TBWA\Media Arts Lab after the success of Samsung’s ‘next big thing’ campaign.
Rumours of the deal have raised eyebrows among some technology commentators because Beats has recently launched a music subscription service, which could prove incompatible with Apple’s iTunes store.
Beats Electronics was founded by music producer Jimmy Iovine and hip hop star Dr Dre and its business was launched on the back of its Beats by Dre headphones, which aim to provide studio quality sound within headphones.
The company has gone on to launch a speaker brand called Pill, which it has heavily advertised with activity including a real-time ad that played off Miley Cyrus’s infamous "twerking".
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- Brand Manager Ball & Hoolahan £40,000 + Car/ Car Allowance, South East England
- Creative Director, PR Agency, London Office + Great Benefits Fleishman-Hillard Up to £100,000, dep on experience, London (Central), London (Greater)
- Head of Digital & Social - Dublin / London The Great & The Good In the region of £60,000 - £65,000 per annum, Dublin
- ACCOUNT DIRECTORS - Integrated/ATL/TTL/BTL/SP/Shopper/Retail - London - up to £50k Judi Patton £40k-£50k plus excellent benefits, London (Central), London (Greater)
- Group Account Director - Experiential Agency The Great & The Good £70,000 - £75,000 per annum, London
- SENIOR ACCOUNT DIRECTOR/GROUP ACCOUNT DIRECTOR - shopper marketing agency - London Judi Patton £50-65k dependent on experience plus benefits, London (Central), London (Greater)