CUPERTINO, Calif.( CBSMiami/AP) — Apple says it will acquire headphone and streaming music company Beats Electronics for $3 billion, making it the most expensive acquisition in Apple’s 38-year history.
The company made the announcement Wednesday,May 28th which confirms earlier reports of an imminent deal.
It’s the 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.
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