Apple in Talks to Buy Beats Electronics for $3.2 Billion

[Maura]

Big news in the tech world this morning, so big that it’s trending worldwide on Twitter in fact, with a report in the Financial Times (via MacRumors and multiple other sources) that Apple is currently in talks to acquire Beats Electronics for $3.2 billion.


If the deal were to go ahead, it would see Apple owning not just the Beats audio equipment business, which includes Beats headphones, but also the Beats Music streaming music service. The Financial Times’ source said that the Beats management team would report to Apple CEO Tim Cook.


The Beats brand was created by two legendary music figures, Dr. Dre and Jimmy Iovine, who succeeded in recreating their huge success in the music world with an aspirational tech product that turned headphones into a fashionable object of desire.


MacRumors notes that if the deal goes ahead, and Apple pays the rumoured sum of $3.2 billion, this would far exceed its previous highest payment of $404 million to acquire NeXT in 1996.


Source: MacRumors

Picture: Beats by Dre Instagram

 

[s2mikey]

I find Beats headphones to be grossly overpriced for what you actually get. But, I don't get sucked into the brand thing and I go just by sound and performance. My niece has pair and I thought they felt like some thing Fisher-Price would have made. Whatever though.

 

[gadget001]

I bought the in-ear Beats by Dre and took them back within hours because i had a cheaper pair that sounded just as good. Now I splurged and got the wireless beats and I absolutely love them! They're perfect for me when I go to the gym!

 

[AQ_OC]

In my mind the "beats" brand is tarnished....buying beats is like buying Bose. Two things I'm loath to do. I'm surprised Apple is interested in this.....

 

[scifan57]

In my mind the "beats" brand is tarnished....buying beats is like buying Bose. Two things I'm loath to do. I'm surprised Apple is interested in this.....

Maybe Beats has technology and patents that Apple wants?

 

[KevinJS]

Apple is all about making money. I read a Forbes article earlier that stated simply that this is money in the bank for Apple. It represents less than a months worth of profit, and will automatically be recouped. Additionally, it gives Apple a brand which could be used to market phones and tablets for a section of the market that the iPhone/iPad doesn't presently cater to; Beats devices could run versions of iOS and be built down to a price currently untouched by Apple.

 

[AQ_OC]

Maybe Beats has technology and patents that Apple wants?

My understanding is that all they do is some processing to make headphones sound better. Usually jack the bass or something like that.

 

[AQ_OC]

Apple is all about making money. I read a Forbes article earlier that stated simply that this is money in the bank for Apple. It represents less than a months worth of profit, and will automatically be recouped. Additionally, it gives Apple a brand which could be used to market phones and tablets for a section of the market that the iPhone/iPad doesn't presently cater to; Beats devices could run versions of iOS and be built down to a price currently untouched by Apple.

Perhaps. However, several other companies have gone this route...didn't seem to help them so much as far as I can see...but I'm sure Apple knows what its doing. They didn't get where they are by being clueless.