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Apple Reportedly Drops Its Beats Buyout Offer by $200M

by Jacob Kleinman | May 28, 2014May 28, 2014 9:00 am PST


Apple may not end up paying quite as much as planned to acquire Beats Electronics, at least according to a new report from The New York Post. The paper claims Cupertino has lowered its offer from $3.2 billion to $3 billion, citing an anonymous insider.

It’s unclear why Apple is slashing the original price, though it may have something to do with the news that Beats Music only has a measly 110,000 subscribers compared to Spotify’s 30 million listeners. The Cupertino company also allegedly balked after Beats co-founder Dr. Dre appeared in a rowdy online video soon after the rumor first broke to seemingly confirm the news. Recent reports suggest the deal is only 70 percent confirmed to happen, though it sounds like Apple is still actively pursuing the buyout.

It’s also possible Apple never agreed to the leaked $3.2 million deal at all. The Post‘s source claims “Apple hadn’t even begun its due diligence process when news of the number came out,” implying that probably won’t be the final price.

Beats co-founders Jimmy Iovine and Dr. Dre are expected to make an appearance at Apple’s Worldwide Developer’s Conference early next month. Hopefully we’ll get the full story then, though it sounds like the deal is still far from finalized.


Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...