Apple seeks to regain cool with $3B Beats buy

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Beats By Dr. Dre & GRAFF Diamonds Special Event

The Million Dollar Headphones by Beats by Dr. Dre & GRAFF Diamonds on January 31, 2014 in New York City. (Photo by Noam Galai/Getty Images for Beats by Dr. Dre)

CUPERTINO, Calif. (AP) — Apple is striking a new chord with a $3 billion acquisition of headphone and streaming music company Beats Electronics.

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.

RELATED: Apple close to making Dre ‘first billionaire in hip-hop’ with Beats deal: report

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.

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