Apple-Beats Deal Could Be Announced This Week, Valuation Dropped To $3bn [Rumor]

The Apple-Beats deal has been rumored for announcement for a couple of weeks now, with every week new rumors popping up suggesting that the announcement has been delayed. Well now according to a report from the New York Post, it has been suggested that the deal will be announced this week, and that Apple will be dropping the valuation of Beats to $3 billion, down from the rumored $3.2 billion.

Apparently Apple thinks that Beats might not necessarily be worth that much, especially since Beats Music does not exactly have a large number of subscribers. This seems to be in line with the previous rumor which suggested that the delay in the deal was because Apple was trying to place a value on Beats Music, a streaming service that was launched recently by the headphones company.

Given that Spotify, Beats Music’s rival, recently announced that they had 10 million paying subscribers, well safe to say that makes Beats Music’s subscriber base pale in comparison, especially since reports have suggested that Beats Music has yet to break the 1 million mark. In any case we suggest you take this with a grain of salt for now, especially since we have been hearing how the deal will be announced, but only to be delayed.

There are also rumors that Apple could introduce both Jimmy Iovine and Dr. Dre at WWDC 2014 where they will be brought on board Apple as special advisors. It was also reported that Apple’s interest in Beats could be more about Iovine and Dre, and how they can leverage their experience to make Apple more fashionable and savvy, like how Beats managed to market their headphones into a fashion accessory.

Tyler Lee
Categories: Apple, Audio, Rumors
Tags: beats