According to the report, the deal's value may have been impacted by published reports that Beats' streaming music had only 111,000 subscribers, far fewer that Spotify's 10 million paying subscribers.
"Apple doesn't have a streaming music business so it would be a nice instant get, but the hardware is the profitable business," an unnamed source close to the talks told the publication. The wildly popular headphones saw sales of $1.3 billion last year.
Dr. Dre and co-founder Jimmy Iovine could walk away with "hundreds of millions of dollars" after the deal is done, the Post reported. At least one corporate backer, Universal Music Group, will send more than $400 million back to its owner, Vivendi, it added.
To read the Post's full story, click here.