Why is Apple’s proposed $3.2bn acquisition of Beats “really puzzling”?


You might have seen the expensive headgear around London – in fact you might even own a pair. Dr Dre devotees and music lovers alike often rave about Beats headphones, which RRP up to £329.95.

But the company, Beats Electronics, which was founded by hip-hop star Dr Dre and music producer Jimmy Iovine, could become Apple’s latest acquisition.

A deal to buy the headphones maker, which also has a music-streaming service, could be completed as early as next week, with Apple set to fork out up to $3.2bn (£1.9bn). Considering Beats was valued at $1bn in its latest round of funding in September, that’s a considerable rise.

However, with Apple already owning iTunes, one of the biggest music stores in the world, many commentators have been puzzled by the move.

“This is really puzzling,” James McQuivey, an analyst with Forrester, told the BBC.

“You buy companies today to get technologies that no one else or customers that no one has.

“They must have something hidden under the hood.”


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