dre's co-founder, jimmy ivine, one of the earliest adopters of new platforms. he reportedly is in talks with apple in a creative role. >> if you take it a step further and think about the -- what it adds to their management team it starts to make sense, albeit a very expensive hire. >> this typically builds its own hardware internally rather than acquire it. talent or not, analysts are skeptical. but beats did put in a reported $1.2 billion in revenue last year. and the brand is not just recognizable among consumers, it is even considered cool. >> i think it is very dope. >> i think it is very exciting news. apple is a great company. and the combination of the two will be awesome. both companies. >> i just hope that doesn't mean prices go up. >> apple, it will still be in the same position, i will still be broke, so yeah, i'll try to save up for it. >> reporter: but a deal is not done yet. sources say an official announcement could come as soon as next week. but negotiations could also still fall through. for "nightly business report," i'm morgan brennan in san

dre and producer jimmy ivine is known for the high end headphones. one pair can go for more than $400. it would be apple's largest acquisition to date if it goes through. >>> working for a little less than a billion is bill karins. >> a little. >> just a tiny bit. >> the next time i negotiate it won't be so easy. >> share some of the wealth, especially with mom. >> a lot of people had plans, going to brunch or a nice picnic outside. we'll get to this in a second. let's show you what happened yesterday. we showed you pictures earlier of the outbreak in the central and northern plains. this was to the north. southern minnesota, portions of iowa. seven tornadoes, none of those big, huge and strong. no fatalities, no injuries. today we'll still have a chance of strong storms in the middle of the country, i get it, do not think we'll see a lot of tornados with that. the rain just won't turn off. someone needs to shut the faucet in the northwest. a wet spring. one of the weste eswettest we h seen. it continues to rain at this hour. we're getting some shado

dre and music producer jimmy ivine, is known for its high-end headphones. it would be apple's largest acquisition to date if it goes through. >>> first round of the nfl, shall we? the draft there. giant men with tears of joy and vis visions of dollar signs filled radio music hall. the number one overall pick, first offensive player to go number one since 2006. some other notables, bills traded up to claim sammy watkins. eric ebron goes ten to the lions. earlier in the day he proposed to his girlfriend on the observation deck. two of his teammates chosen ahead of him, johnny manziel got called up as the 27th pick to the cleveland browns. rounds three and four of the nfl draft are tonight. now to the nba, shocking surprise for the trailblazers f before the game, finding a three-foot baby rattle snake in his locker, shown in this picture taken by mo williams. no one was hurt, just a little rattled, as you can imagine. taking it back for the jumper. we'll see that in a second. what that's going to do is actually put the spurs up by 8. here it comes, right there

dre and jimmy ivine will take on undisclosed roles for the company. >>> when we come back here tonightdle schoolteacher who has his students learning and singing a different tune. abc 7 news at 9:00, back in a moment. >>> a bay area teenager is heading to the semifinals of the scripps spelling bee. he is 1 of 46 semifinalists from across the united states. a 13-year-old from san ramon got knocked out of the competition today. and it was a tough competition. >> p-o-d-o-t-h-e-c-a. >> correct. >> the 46 competitors are all that's left from 281 students who began the week vying for the title of spelling bee champion. the winner will receive more than $33,000 in cash and prizes. the stakes are high. a lot of prestige, as well. the finals will be held tomorrow night. we'll report to you what happens. >>> as the school year winds down, you've heard that our students need to do much better in math and science. and tonight, the bay area teacher who has unlocked the secret to push kids to the top, by turning his class into a music lesson. it's remarkable. here's abc news reporter, neal karlinsky

i did think they overpaid, but if you can somehow get jimmy ivine involved, on the music side, then it'sl not worth $3.2 billion. >> if this deal happens, which it has not happened yet, don't we think it has to be more about the headphones? >> it's not about technology. it's not about buys headphones. i would say this guy spoke too soon. we haven't heard the vision, but it's technology-driven, maybe it's wearables, but not to put an apple on the headphones and take the "b" off. >> anthony? >> i think -- >> by the way, we tried to get sacks from yammer, which was bought by microsoft, and we haven't heard back. >> i think this is an intellectual capital acquisition as much as anything else. if we go back, bangone was purchased by jpmorgan, a lot of different reasons, but the main one was to get jamie dimon. this will be positive for apple. it's not that expensive. >>> we have tallied the results about our ibm debate. you have steve wyche, the bear, won the debate. steve, congratulation. tickers, pete? >> immax. >> suntrust. >> g.o.l. >> long macy's. >>> have a great rest of the day. power

thdre and jimmy ivine, famous producer in los angeles. tim cook. brings talent sboboth into t fold and streaming music business which is something that could be helpful to apple. a lot of analysts have been questioning like these companies are kind of alike. why would apple buy another brand and bring it into the fold. but now more and more people are saying it just makes sense. >> what does -- one obvious things that beats gets out of it is a whole lot of cash and maybe dre becoming a billionaire. what does beats get out of it? >> beats gets a whole lot of cash and you've got these two music producers part of the apple family and a whole new venture for them. if you look at what it means for the hip-hop billionaire, is he really going to be a billionaire. dr. dre is worth $550 million predeal. he owns up to a quarter of beats. we don't know exactly for sure. with apple paying $3 billion for beats he might get there. he might just get close. >> he might get there. quick, does it change -- do you think it will change anything for the apple consumer?

dre and music producer jimmy ivine. back in january, rubenstein was on set with us.

beats co-founder jimmy ivin and dr. dre, too. now, apple expects the deal to close in its fiscal fourth quarter. tim cook tweeted this photo, saying, sharing a laugh with jimmy and dre. interestingly for apple here, what do you think of it? >> i think it's an interesting move. because over the sort of past 20 years apple has been very much seen as a product innovator. and this is the first time that i can think of where they've actually bought somebody who is a product innovator. in the overall scheme of things, for apple, $3 billion is not a huge sum but it is an interesting move. they're seeing they're having to make moves like this as well. >> a lot of heads being scratched about the price tag right now. if they want to get into the streaming business it's perhaps going to cost them a lot more to not be in this business at this stage or at least going forward. from that perspective it makes sense. >> absolutely. i think that's probably the major reason they're going for this. they want to get away into the streaming business. t

dre and record chairman jimmy ivine, from hoops to hollywood, beats are seen as a must-have acce accessod they're not cheap. the average pair, $200. the thing with beats is they have become as much as a fashion statement as anything else. i'm not even listening to music. plus they match my outfit. >> there's a cool factor there and i think apple is targeting that cool factor. it doesn't necessarily mean that the company itself has lost its mojo but is recognizing another company that could potentially bring something to the table. >> while the deal is not official, dr. dre was seen celebrating the news on a video. >> billionaire boys club for real, homie. >> if this does go through, the deal would be apple's largest-ever acquisition, proving once again that only the cool kids stick together. the deal would definitely be a departure from apple's normal way of doing business, creating new products on their own within the company. stay tuned. we'll see what happens. >> i thought you would have purple ones on right now to match your outfit. >> that's how i roll. i'm just a fashionista to the

. >> jimmy. >> ivine? >> are you up to speed on the elections around europe? >> yes, the anti-establishment parties did extremely well except in italy. >> but nutty anti-establishment. they are drawn together by anti-european union? >> yes, absolutely. not all of them are fringe and nutty, right? in greece there was the left wing. >> this anti-establishment. >> pretty much anti-eu. nigel farage was a guest here. he was great. >> you can extrapolate to our elections necessarily at this point? >> no, i don't think so. >> i was thinking in reference to the alstom bid, whether hollande is recognizes that you better eventually try to create jobs through the private segment. >> he advocated lowering taxes on businesses, lowering taxes on individuals. >> they're coming around before us. which is typical. >>> bank of america faces a deadline to resubmit its capital plan. the firm discovered an accounting error in preparing its 10q and found that it made a $4 billion miscalculation. as a result, b of a's plans for a stock buy back and dividend increase are in question.

dre and music producer jimmy ivine. back in january, rubenstein was on set with us. he put on a pair and explained how he was learning the hip hop business. with a deal like this, looks like he was a good learner of all this. we'll talk much more about this potential deal in just a few minutes. >> immediately people are saying apple never paid for a brand, it was always its own brand. beats, at first i didn't understand it. it was totally overpriced. my kids both have a couple of pairs. they're plastic. i don't know whether the sound is better. i know kids want them. i remember a couple of kids were looking at them. i wonder, are those knockoffs, are there real? >> there's a cache around it. >> there's the music business. >> that's fledgling. that's what apple really wants. for a couple of years, downloading itunes was growing and growing. now it's down 6% or something, year-over-year for those tunes. i was amazed that sales of beats is like $1.2 billion in revenue. >> i was thinking about that. everybody who wants a pair has them. >> but they break. at least the one

it's a $3 billion bat that jimmy ivine will be able to join apple and create a spotify killer productle culture kills his mojo. very, very tricky to do successfully. they do not know what it will be. beats streaming product is not the right product. they implicitly admitted that yesterday at the code conference. this is a case of two very, very different cultures coming together with a hope that he will be able to work his magic. i think it is a long shot but so the of appallsy acquisition by apple. we will see what happens. >> so you love the deal? >> no, i don't. i do not love the deal. rink there's a sense in which when you have a market where there is a product four orders of magnitude larger, in this case spotify, the table is largely set. apple has sort of woken up. spotify was founded in 2006. apple has woken up and realized their download is broken, the future of streaming. they have gone out and bought one of the best people in the music industry to help them. >> is that a word lott west coast now in the nomenclature? ballsy. >> you're going to use it regardless. >> well, you