Apple (NASDAQ: AAPL) may be looking to acquire Beats Electronics to build its own music recording business, an idea presented by Mashable.

Jimmy Iovine and Dr. Dre are both acclaimed producers that have worked with several top artists. Part of the acquisition may include contracts for Dre and Iovine to consult or work within the company while it launches a music production division.

By distributing its own music, Apple’s margins would climb significantly and give it an upperhand in the industry because of its domination in the digital distribution business. Adding to this idea, Beats Electronics has its own music streaming service, another opportunity for Apple to boost margins with music it is distributing. Apple could even provide incentive for customers to buy its hardware versus Samsung’s by offering iPhone users free downloads or streaming for the artists it produces.

Apple shares have given up about one percent on the news and are currently trading at $581.74.