Beats Could Be Apple’s Biggest Acquisition Yet

Rumors are circulating around technology news sources that Apple could potentially buy Beats Electronics, including the popular Beats by Dre headphones and the Beats Music subscription service, for $3.2 billion. Over the last few months, Apple’s acquisitions have mainly included maps, technology hardware, and software, so Beats would be the first purchase to include both an electronics manufacturer bundled with a a proprietary software with a user base of around 200,000.

Beats Music, a venture by Dr. Dre and FlashFWD nominee Jimmy Iovine,  hasn’t had an entirely successful start, mainly overshadowed by a wealth of other streaming engines, including the massive (and recently redesigned) Spotify. However, iTunes has suffered the inevitable decline of music downloads, so a brandable streaming model at its fingertips could mean a new entry point into the rapidly expanding market. But Apple rarely ventures into such high-profile acquisitions of widely known brands — the company is known for its brand integrity and razor-sharp focus on details, and the Beats acquisition could undermine this diligence if mishandled.

As an aside, the rumored deal has potential for Dr. Dre to become the first billionaire in hip-hop, due to his stake in the Beats Electronics company. A video selfie from the rapper/entrepreneur earlier this morning may have confirmed the deal.

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