Linked by Thom Holwerda on Wed 28th May 2014 21:19 UTC
Apple

Apple, the company that turned digital music into a mainstream phenomenon, said on Wednesday that it was buying Beats Electronics, the rising music brand, for $3 billion, in a move that will help it play catch-up with rivals that offer subscription-based music services.

I still have no idea why Apple is buying these guys. Then again, that's probably why I'm not a billionaire.

Coincidentally, I find it highly entertaining that technically, this is now an Apple product.

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It's a departure but not a crazy one
by siraf72 on Thu 29th May 2014 09:29 UTC
siraf72
Member since:
2006-02-22

Apple has said in the past that it is not averse to make acquisitions not related directly to it's core services to diversify it's assets. It has just never done that until now:

Beats offers Apple a number of things:

1 As I understand it, a very profitable P&L statement
2 A fashion brand that is growing (see also point 1)
3 A growing streaming service (Presumably with attached licenses)

As a financial investment this might be justifiable in it's own right without any big mystery to it. All in all, it's not that crazy.

It would be interesting to see what would happen if a bit of Apple engineering and industrial design finds its way into Beats headphones.

(On a separate note, I managed to convince my teenage son that beats were a waste of money and that he should buy a good pair of Sennheisers for much less and enjoy the music more).

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