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World News 4 - Apple buys Beats Electronics in $3 bil. deal

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2014-05-29

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And finally‚ the technology giant Apple has officially confirmed it will purchase Beats Electronics in a deal worth three billion U.S. dollars.
Paul‚ we heard rumors of this deal more than two weeks ago.
But what exactly is Apple getting in this buy-out?
Well according to Apple executives‚ they're getting three things: a pool of talented engineers‚ a leading headphone maker‚ and a popular music streaming service.
This is Apple's biggest acquisition in the company's 30-year history and it actually goes against the late Steve Job's view of only buying smaller and less expensive start-ups.
The deal is also seen as Apple's effort to make up for lost ground in the music streaming market - the fastest-growing segment of the music industry.
Services like Pandora and Spotify have raced ahead of iTunes Radio‚ which the company launched last year.
The iPhone maker also gains a line of high-end headphones that's popular with a young and urban demographic and reportedly boasts revenues of over a billion dollars a year.
As part of the deal‚ Beats co-founders Jimmy Iovine and rapper Dr. Dre will join the Apple family however‚ what specific role they'll play in the future of the company still remains to be seen.
Alright Paul. Thanks for that update. We'll see you back in just about two hours. Reporter : paulyi@arirang.co.kr

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