Apple's annual developer conference in San Francisco.
Apple to Announce Beats Acquisition This Week, Drops Price to $3 Billion
Since the acquisition was originally reported on May 8, Spotify -- the leading player in the subscription music field -- announced that it had 10 million paying subscribers, and this could have given Apple additional negotiating leverage.
Still, the company is understood to place a high value on the profitable Beats audio business which retails headphones — costing up to $450 — and speakers around the globe.The paper notes that both Jimmy Iovine and fellow Beats co-founder Dr. Dre are expected to attend Apple's Worldwide Developer Conference next week. Dre is expected to net somewhere around $750 million from the sale as he currently owns approximately 25 percent of the company.
That business recorded sales of $1.3 billion in 2013.
“Apple hadn’t even begun its due diligence process when news of the number came out,” one source close to the talks said Tuesday.