Apple in $3 billion deal to buy Beats Electronics

CUPERTINO, Calif. -- In its largest deal ever, Apple said on late Wednesday that it is buying Beats Electronics LLC for $3 billion. Beats is a key player in the premium headphone market and is also in the streamlining music business.



Apple will pay $2.6 billion in cash and another $400 million in equity for Beats, whose founders rapper and producer Andre Young (aka Dr. Dre) music-industry mogul Jimmy Iovine will join the tech giant.



With sales of digital media downloads on the decrease, Beats gives Apple entry into the booming area of Internet-based streaming, which is currently dominated by Pandora, Google Inc.’s YouTube, and Spotify Ltd.