Apple looking to buy Beats Electronics in record $3.2 billion deal

Apple is reportedly ready to pay a record $3.2 billion for Beats Electronics, the company founded by hip-hop star Dr. Dre and music producer Jimmy Iovine.
The deal is not yet complete, but if everything goes according to plan the two companies could announce it as early as next week.
The Financial Times (FT) broke the news and Reuters later reported on the matter as well, each citing its own sources familiar with the situation. According to the FT report, Apple will acquire Beats' recently launched music streaming service as well as its audio equipment business, including its brand of headphones and audio equipment. The management team at Beats will report to Apple CEO Tim Cook, the FT further notes.
"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," reads the Reuters report.
"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."
Roughly ten years ago, late Apple CEO Steve Jobs revolutionized the music industry by launching Apple's iTunes download store and the iPod, but now Apple seems in desperate need of a revamp. The music scene is changing and streaming services are increasingly gaining momentum, and the iMaker seems to be willing to think outside the box and adapt to current times. The company's iTunes has dropped in popularity and its hardware devices are facing fierce competition from rivals, and Apple needs a new ‘wow' factor to stay at the top.
As the Financial Times further points out, Apple executives have acknowledged that the Apple brand needs a revamp. Beats Electronics has a ‘cool' factor that could benefit Apple, but analysts seem baffled by the record amount Apple is willing to pay for the company.
During its last round of funding back in September 2013, Beats was valued at just $1 billion, but Apple is reportedly willing to pay a whopping $3.2 billion for the company. On the other hand, Beats launched a music streaming service this year, which received praise for its neat design and human music curation, preferable to the computer algorithms most of its rivals use to come up with playlists.
Still, Apple has not made such a large acquisition in at least a decade, and this record deal suggests the iMaker may be feeling pressure from rivals. Observers have criticized the company for no longer being innovative enough, and Apple may want to prove that it's still capable of making bold decisions.
According to analysts, roughly half of smartphone users listen to music on their mobile device, and making a move in this direction may greatly benefit Apple in its effort to keep users loyal to its platform.
As previously mentioned, the deal has not yet materialized, but could be announced as soon as next week if everything falls into place. For the time being, neither Apple nor Beats have agreed to comment on the matter.