Apple Inc. (AAPL) reportedly drops price of Beats by $200 million
Apple Inc. (NASDAQ:AAPL) is still considering the acquisition of Beats Electronics, but the price will likely drop. Apple has cut its proposed acquisition price for Beats from $3.2 billion to around $3 billion, according to The New York Post. Even with a lower price, this would still be Apple’s largest acquisition to date.
Apple has not started the due diligence process for Beats yet, but the deal was leaked earlier this month. The value of the deal may have been dropped because the Beats’ streaming music service has only 110,000 subscribers.
Another reason why the deal became complicated because Beats’ founder Dr. Dre inadvertently confirmed the deal in a leaked video by Tyrese Gibson.
“Apparently, the Apple family near imploded with outrage when that video went up on Facebook of an ‘excited’ Dr. Dre with R&B singer/former Coca Cola pin-up Tyrese,” reported Billboard.