According to a report in the Financial Times, Apple (AAPL) is in talks to purchase Beats Electronics, the headphone manufacturer founded by legendary rapper Dr. Dre and music producer Jimmy Iovine, for $3.2 billion.

The deal, if completed, would be the iPhone maker’s largest acquisition, the FT said.

Beats is most famous for its sleekly designed (but expensive) headphones, but earlier this year it launched a subscription music service, priced at $9.99 per month for one person, with other options including subscribing through AT&T (T). According an article in The Verge last month, subscriptions were slow to trickle in, with the first hundred days producing numbers “in the low six figures.”

Beats saw a valuation of $1 billion in September 2013, according to the FT. The paper also reported that in the proposed deal the Beats management team would report to Apple CEO Cook.