Apple has bought 24 companies in past 18 months, it was recently disclosed, and more deals are likely on the way, with Tim Cook, the CEO, describing Apple as "on the prowl" for potential acquisitions that make sense. Cook's comments coincide with news reports that Apple is seeking to bolster its streaming-music business with a proposed $3.2bn deal to acquire Beats Electronics LLC, the high-end headphone maker that recently launched the Beats Music subscription service, according to people familiar with the matter - - Beats Electronics LLC is a privately held US firm and Beats Electronics Holding Limited, an Irish offshore tax avoidance company that is domiciled in Jersey, Channel Islands, is the owner of the international operations.
The Financial Times reports that Apple is closing in on its largest acquisition with the planned $3.2bn purchase of Beats Electronics, the headphone maker and music streaming operator founded by music producer Jimmy Iovine and the hip-hop star Dr Dre.
The FT says that a decade after Steve Jobs
transformed the music industry with the iTunes download store and the iPod
digital music player, the deal is likely to be seen as an admission that Apple
needs to look outside its Cupertino labs to continue making an impact.
The Wall Street Journal reports that Carlyle
Group would be a big winner in Apple Inc's possible acquisition of
headphone-maker Beats Electronics.
Late last month speaking during his company's
quarterly earnings conference call, Tim Cook told analysts that Apple is on the
lookout for companies with talented employees and "great technology." But a key
factor for those acquisitions is that they "fit culturally," the CEO said.
Apple has usually acquired smaller companies in
strategic deals, never having spent more than $1bn on any acquisition but Cook
said that could change, if it were the right deal.
HTC of Taiwan, the smartphone maker, bought 50.1% of Beats Electronics in 2011 for $309m and in 2012, it sold back half it stake to the co-founders.
Beats Electronics Holding Limited had revenues of $1724m in 2012 and profit before tax of $8,2m.
It paid the Irish Revenue $537,563 in tax even though its presence in Ireland is only as a mailbox company.
OECD BEPS Project: Ireland should embrace corporate tax reform -- including how Apple and rappers like Dr Dre are able to benefit from Ireland's tax regime.
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