“When you hear that Apple may buy a well-known company, it’s dangerous to assume that it’s going to happen,” Harry McCracken writes for TIME Magazine. “Actually, based on history, the safest assumption is that the idea is sheer fantasy–there have been countless rumors of such acquisitions which, though always fun to speculate about, never amounted to anything.”
“With that out of the way: Matthew Garrahan and Tim Bradshaw of the Financial Times are reporting that Apple is “closing in” on a $3.2 billion deal to buy Beats, the maker of headphones and speakers (and a new subscription music service) co-founded by Jimmy Iovine and Dr. Dre. They say it’s possible it could be announced next week,” McCracken writes. “I’m not assuming that the acquisition is as real and close to being done as Garrahan and Bradshaw say it is–and even they stress that it could fall apart at the last minute. But even if you just mull it over as a theoretical business transaction which may or may not happen, it raises some obvious questions.”
1. Why would Apple make an acquisition so atypical for Apple?
2. Why would Apple want to own an audio accessory company?
3. Or is it the music service that’s enticing?
4. Could it be the brain trust?
5. Would the Beats brand live on in its current form?
6. Would its design aesthetic?
7. Would this be a genius move in a way I’m not seeing?
Much more, as McCracken attempts to answer his questions, in the full article here.
The reason for Apple’s $3.2 billion interest in Beats? Spotify – May 9, 2014
Apple buying Beats Electronics: Its best idea since the iPad? – May 9, 2014
Why would Apple want to blow $3.2 billion on Beats Electronics? – May 8, 2014
Apple in talks to buy Beats Electronics for $3.2 billion – May 8, 2014