Beats by Dre, the Santa Monica-based maker of high-end headphones founded by rap pioneer Dr. Dre and veteran music executive Jimmy Iovine, is expected to shortly announce a deal to acquire digital music service MOG, according to executives familiar with the transaction.
The agreement, which is not yet finalized, calls for Beats to pay roughly $10 million for MOG, a Berkeley, Calif.-based streaming service with about 500,000 subscribers.
A MOG spokeswoman was not immediately available for comment. A Beats spokesman declined to comment.
The Times reported in March that the two companies were in acquisition talks. A deal could be announced within days, said people with knowledge of the matter.
Should the transaction go through, Beats would use MOG's technology to build on-demand music services into its products. Though the companies have no concrete plans to do so, MOG's service also could be embedded in devices made by HTC Corp., a Taiwanese manufacturer of cellphones and other mobile electronics. HTC in August paid $300 million for an undisclosed stake in Beats.