Apple seeks to regain cool with $3B Beats buy

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CUPERTINO, Calif. (AP)

Apple is striking a new chord with a $3 billion acquisition of headphone and streaming music company Beats Electronics.

(AP)

Wednesday’s announcement confirms earlier reports of an imminent deal. It’s by far the most expensive acquisition in Apple’s 38-year history, a price that the company is paying to counter a threat posed to its iTunes store.

The growing popularity of music streaming services such as Pandora and Spotify has been reducing sales of songs and albums, a business that iTunes has dominated for the past decade.

Apple Inc. broke into music streaming with the launch of iTunes Radio last September, but the Beats deal is a sign that the service hasn’t been a big hit.

Beats launched its streaming service earlier this year to supplement its trendy line of headphones.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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