Apple in Talks to Acquire Beats Electronics

What does Apple stand to gain from Dr. Dre's Beats headphones?
2:07 | 05/09/14

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Transcript for Apple in Talks to Acquire Beats Electronics
focused on just one thing. A playoff win. Ryan smith, ABC news, New York. Now some news for you and the music you love. The company that revolutionized our lives with the iPod, apple, and the famous name be able to cash in. Here's Paula Faris. Reporter: For a company that's always marched to the beat of it's own drum -- apple dropping an unexpected tune. Reportedly in negotiations to buy the company beats electronics, which was founded by hip-hop artist Dr. Dre, and famed music producer jimmy iovine, for a reported $3.2 billion. Beats, best known for those headphones worn by celebrities like Lebron James, Katy Perry, and Justin Bieber, recently got into the lucrative streaming music business. Streaming services like Pandora and spotify allow users to listen to whatever they want, whenever they want. Beats charges $10 for a monthly subscription. Which industry experts say could be what lured apple. It's an area that apple's late CEO Steve jobs didn't project. Once saying, "Customers don't seem to be interested in it. People want to own their music." But the itunes era may be ending. Last year, for the first time, online music sales dropped. One media expert saying, "The age of digital downloads is basically over." Apple hasn't commented on the potential deal. However, Dr. Dre posted this video just last night. The first billion air in hip-hop. Reporter: Dre, up from the rough streets of Compton, conquering the hip-hop world. Six grammys under his belt, but this could be his biggest hit yet. That number, $3.2 billion. The largest acquisition in the history of apple. Eight times more than they've ever paid for a company. Coming up next, confessions

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