May 28 2014, 11:59pm CDT | by Bijon Kumar Pramanik
According to the New York Post, the original price Apple was going to pay for Beats, $3.2 billion, has been reduced to $3 billion, cutting out two hundred million dollars.
There is no information on why this happened, although it hasn’t been a secret that negotiations were taking longer than either party would have liked. Part of those negotiations were held up due to the trouble they are having placing a value on the 111,000 subscribers that Beats Music has. That number, to some, was much lower than expected and it has placed a bit of concern in Apple’s mind.
They still want Beats, though, and the $450 price tag that the company’s headphones sport is in line with the high premium that Apple customers are always willing to pay. The popularity of these headphones is what earned them $1.3 billion in 2013 alone, in addition to investments from a number of companies, further complicating the process.
Even at a reduced price, it is still rumored that both Dr Dre and Jimmy Iovine are going to be taking jobs at Apple in some capacity. Steve Jobs had been courting Iovine in the early 2000s, although it isn’t known what they might do with him at this point in time.
Source: NY Post
Bijon Kumar Pramanik
Bijon Kumar Pramanik is an experienced technology writer working since years in the consumer electronics field.
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