Apple Inc. (Nasdaq: AAPL) is close to striking a deal with Dr. Dre.

In what would be the largest-ever purchase by the iPhone maker, Apple is in advanced talks to acquire headphone maker and music-streaming service Beats Electronics LLC for $3.2 billion, people with knowledge of the matter said. (For previous coverage on Beats, see Carlyle to Pump Up Dr. Dre's Beats Electronics.)

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