Deals and IPOs

Apple-Beats deal may come with smaller price tag: Report

Jimmy Lovine and Dr Dre, co-founders of Beats.
Getty Images

The long-awaited deal between Apple and headphone maker Beats Electronics may come this weekbut with a slightly smaller price tag than originally thought, the New York Post reported Wednesday.

The tech behemoth is expected to announce a deal with Beats for $3 billion, down from the initially speculated price of $3.2 billion, the Post said.

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.