Snippet: Apple in Talks to Acquire Beats Electronics for $3.2b ☇

Shared on May 8, 2014

Originally reported by the Financial Times and confirmed by Bloomberg, The Wall Street Journal, and The New York Times and posted by Juli Clover on MacRumors:

Apple will acquire Beats’ streaming music service, which launched this year, and its audio equipment business, which includes its brand of headphones and audio equipment. The Beats management team will report to Mr Cook, said people familiar with the deal. Apple and Beats declined to comment.

If this is true, which is looking like it is, this is a big deal—not only is it one of Apple’s biggest acquisitions, but it makes some sense. The music service could easily be folded into the iTunes Radio brand (or vice-versa) and the hardware business works with no necessary overlap. I suspect the first thing to go would be the branding deals with HP and HTC (sadly no iPhone Rezound), but this could give Apple some more appeal to a younger demographic. I’ve always said that Apple would acquire companies where it wouldn’t have a lot of legacy products to support—this is why other smartphone or computer manufacturers never made sense. Although this is surprising, it plays into my theory nicely. Then again, this could be the next iPod Hi-Fi.

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