Dr Dre-founded Beats Electronics looks set for takeover by Apple

Apple have decide to buy the popular Electronic company Beats by Dr Dre for 3.2 billion. It is the California company's largest ever acquisition. Beats have been developed as rapper Dr Dre and music producer Jimmy lovine lunched a strong brand after it in 2008. Apple said that ‘we don’t have a rule on the price it will pay: "We'll spend what we think is a fair price."

Beats recently launched a streaming music service, which may have proven particularly attractive to Apple, the popularity of whose iTunes service appears to be falling. In contrast, subscription services are growing fast, with revenues increasing 50% to $1.1bn in 2013, according to a report by the the global music industry association IFPI. Downloads, however, fell 2% to $3.93bn.

The Apple deal, news of which was first reported by the FT on Thursday night, would mark a change in the California firm's approach under the leadership of chief executive Tim Cook following the reluctance of Steve Jobs to make large acquisitions. Reporting the company's second-quarter earnings last month, Cook said he was "on the prowl" for companies to buy. He told journalists: "We are not in a race to spend the most or acquire the most. We're in a race to make the best products that enrich people's lives." He added that Apple has purchased 24 companies over the past 18 months.

"In terms of acquisitions, Apple has been very, very light in their activity," Richard Lane, an analyst at Moody's, told the FT. He added: "I don't think they've spent $1bn in any of the last four years."

I think that Beats is a popular company and has done well one it own, I feel that they shouldn't of sold the business to apple because it would of done better on its own and generated a lot of money in the years before but selling the business to apple will be good for the apple business as they'll have a product which is popular and known in the market which is there own.