SAN FRANCISCO » A published report says Apple is orchestrating a $3.2 billion acquisition of Beats Electronics, the headphone maker and music streaming distributor founded by hip-hop star Dr. Dre and record producer Jimmy Iovine.

The Financial Times says the deal could be announced as early as next week. The newspaper cited people familiar with the negotiations. Thursday’s report warns there is a still a chance the talks could collapse.

Both Apple Inc. and Beats Electronics declined to comment to The Associated Press.

If the deal is completed, it would be by far the largest acquisition in Apple Inc.’s 38-year history.

The acquisition would add Beats Electronics’ popular line of headphones and music streaming service to an Apple line-up that already includes iPods and the iTunes store, the world’s top music retailer.