Apple will possibly buy Beats

If completed, this could be Apple’s biggest acquisition to date. It is being seen as a move by Apple to get a stronger foothold in the phone and music accessories business and boost its online music offerings.  The two areas are expected to see fast growth in the coming years.  

Beats was founded by music producer Jimmy Iovine and the hip-hop star Dr Dre and until recently was best known for its headphones.  It started a subscription-based music streaming service earlier this year.  Apple already has its own iTunes store which is the world’s largest music download service. It also launched iTunes Radio last year.

The reported price is also a huge premium on Beats’s previous valuation. Beats was valued at just $1bn after its last funding round in September, which saw it get a $500m investment from the Carlyle Group.