Apple Drops Beats Acquisition Price To $3 Billion
From the start of this month there have been numerous news items about Apple’s acquisition of Beats. Recently we heard about the probable delay of the acquisition due to a few reasons. The reports claimed Apple was in negotiation to buy Beats, headphone and streaming music company, for $3.2 Billion, making it Apple’s largest deal in history. According to a recent report of NY Post, Apple has dropped the price it’s willing to pay for the company to $3 Billion and the acquisition will commence this week. It’s not clear as to why Apple decided to lower its offer price, but it can be related to the reasons discussed in a previous article regarding the delay. There’s also a possibility that a leaked report saying Beats only had 110,000 paying subscribers made Apple more skeptical.
According to the report, Apple hadn’t even begun its due diligence process, which is the primary step companies follow before buying a business, when the news about $3.2 Billion as the acquisition price was leaked in the market.