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Apple in Talks to Buy Beats Electronics for $3.2 B

Apple is reportedly in talks to acquire Beats Electronics, the high-end-headphone maker co-founded by hip-hop artist Dr. Dre, in a deal worth $3.2 billion, according to the Financial Times.Beyond its line of bass-boosting ear pieces, Beats has also broken into the competitive market for subscription streaming-services, with a mobile offering that, unlike Apple's iTunes and iTunes Radio, offers ad-free, on-demand music listening for about $10 per month. If the deal goes through, Apple will acquire the subscription business alongside Beats' hardware division, with the Beats management team reporting to Apple CEO Tim Cook, the FT adds.

http://www.rollingstone.com/music/news/apple-in-talks-to-buy-beats-electronics-for-3-2-billion-20140508

http://www.usatoday.com/story/tech/2014/05/08/report-apple-to-acquire-beats/8868913/
hgeifman
ebm
9,311 posts
 
Wow I'm holding my breath!!
nonoise's avatar
nonoise
10,922 posts
 
It wasn't that long ago that Beats was worth $1Billion until Google sniffed around. I'm in the wrong business.

All the best,
Nonoise
jedinite24's avatar
jedinite24
1,503 posts
 
I agree with the points above. I think this deal for Apple is about the music streaming business of Beats and how it can help Apple make improvements.

I remember years ago trying $300 Beats Pro headphones on an IPod at the time and thinking the sound was bleh.
hgeifman OP
2,272 posts
 
As other noted above, the potential Apple Buys Beats deal, on the surface, certainly did not make sense to me. I was initially disappointed and puzzled by the news. However, with a bit more research it appears this is not a bad acquisition (maybe).

Please see the attached article for what is likely to be some of the logic the Apple management team is using in regards to this potential acquisition.

http://seekingalpha.com/article/2209563-apple-beats-cutting-through-the-hype-and-negativity

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