Apple seeks to regain cool with $3B Beats buy - 13 WTHR Indianapolis

Apple seeks to regain cool with $3B Beats buy

Updated:
CUPERTINO, Calif. - Apple is striking a new chord with a $3 billion acquisition of headphone and streaming music company Beats Electronics.

Wednesday's announcement confirms earlier reports of an imminent deal. It's by far the most expensive acquisition in Apple's 38-year history, a price that the company is paying to counter a threat posed to its iTunes store.

The growing popularity of music streaming services such as Pandora and Spotify has been reducing sales of songs and albums, a business that iTunes has dominated for the past decade.

Apple Inc. broke into music streaming with the launch of iTunes Radio last September, but the Beats deal is a sign that the service hasn't been a big hit.

Beats launched its streaming service earlier this year to supplement its trendy line of headphones.

___

The AP's Ryan Nakashima contributed to this report from Los Angeles.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

5/28/2014 4:33:00 PM (GMT -4:00)

Powered by WorldNow