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Apple to Acquire Beats Audio

The business wires are ablaze today with the story that Apple is acquiring Beats for $3B. Curiously, the press consensus (and pre-market reaction) is that it's a bad move for Apple, either because they're overpaying or because Beats' phones are poorly regarded (a curious stance, since Beats has 70% of the premium market). I disagree--$3B is bar change for Apple and Beats, I assume, is an exceptionally high-margin cash cow with tremendous brand cachet among consumers, if not audiophiles. I'm not personally sold on Beats streaming service, but I'd be surprised if it wasn't successful. Interesting move, in any event.
loomisjohnson
theo's avatar
theo
2,690 posts
 
I wonder if this will end the streaming of Beats via Sonos?
Since Apple would want their hardware sales to increase. As far as MOG goes it is already owned by Beats and I would bet the purchase of Beats is all inclusive. On another plain of thought maybe they will continue to allow Sonos to stream Beats as Sirus did with XM and kept both audiences captive. Looks like a bigger fish always comes along doesn't it?
mofimadness's avatar
mofimadness
4,993 posts
 
My thinking was thus:

MOG sold out to Beats and I'm sure Beats made MOG sign a non-
compete agreement. This agreement would be between MOG and
Beats not MOG and Apple. So "maybe" MOG could
restart a new service and not violate any conditions that
they had with Beats. Just a thought, (and a hope and
prayer).

I'm not a lawyer...I just play one on TV :-)
theo's avatar
theo
2,690 posts
 
Reading some of the business mags on line lead me to believe that MOG was struggling when Beats bought them. Also speculation is Apple was motivated more by the music service than the hardware side of Beats. So I guess my hope is that Apple will maintain the current Beats customer base by continuing things as are and allowing Android and Sonos users to subscribe. I just started my free Beats trial over the weekend as MOG shuts down in 20 days. Time will tell as it always does.
buconero117
2,311 posts
 
Just confirms my 'greater fool theory of investing. The way it works is that all you need is to find a greater fool to buy your 'investment' to make a profit. Value has nothing to do with it.
chrshanl37
835 posts
 
This will surely be the end of Beats for Sonos. It appears as if Apple is moving towards streaming which marks the end of music downloads save for High-Res.
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