“Word, now confirmed by the Financial Times, Bloomberg, The Wall Street Journal, and The New York Times, that Apple is in talks with Beats Audio about an acquisition to the tune of $3.2 billion is surprising only because of the price,” Anthony Wing Kosner writes for Forbes. “The dollar value of Dr. Dre and Jimmy Iovine’s cool aside, there are many things that make sense about the idea. Apple has never been considered a street brand or the maker of particularly good headphones.”
MacDailyNews Take: The latter goes double for Beats.
“And iTunes Radio is far from a Spotify or Pandora killer, so the new Beats Music streaming service could bolster it and declining iTunes sales,” Kosner writes. “But for a company that was valued at $1 billion at the time of the Carlyle Groups investment of $500 million last September, the hyper-inflation of its valuation can only mean that others were in the bidding.”
“Apple has never spent a billion buying another company, something that rivals Google and particularly Facebook can’t say. Facebook, in particular, stacks up as a likely suitor,” Kosner writes. “And, like Apple, Facebook has a cool problem. Instagram and WhatsApp were both attractive because of their teen appeal. Beats would bring not only youth but some amount of urban street cred as well… But Beats is really much better aligned with Apple than any other tech company I can think of. Both have succeeded at launching product line after product line that are a cut above its major competitors in both quality and price.”
MacDailyNews Take: Beats. A triumph of marketing over sound quality. Kosner has obviously swallowed Beats’ marketing hook, line, and sinker. A pox on you, Anthony, for ever daring to mention “Apple” and “quality” in the same sentence as “Beats” whose audio hardware is, to be generous, overhyped mediocrity at best.
You want to kill an audiophile? Just slap a pair of Beats’ headphones on him and press play.
Kosner writes, “My guess is that Beats may have played Facebook or others to drive the price up, but secretly (or not so secretly) have always wanted to be acquired by Apple.”
Read more in the full article here.
MacDailyNews Take: The fact that some poor, tin-eared and/or gullible souls think Beats’ audio products are “quality” is proof positive that some people will believe just about friggin’ anything.
Apple in talks to buy Beats Electronics for $3.2 billion – May 8, 2014