Apple acquiring Beats for $3.2 billion

By: Marawan Alwaraki, May 12, 2014
Apple is acquiring Beats for a large $3.2 billion, making this Apple's most expensive acquisition ever. The news comes in after reports of Apple wanting to make a music streaming service that competes directly with services such as Pandora, Spotify & Rdio. There are several reports confirming this deal, and even a video embedded below where Dr Dre confirms it himself.

Joining the family soon


However, the music streaming service is a very small part of Beats. Beats was founded in 2006 by Dr Dre who is now the first billionaire in Hip Hop. Over the years it has gained popularity for it's overpriced headphones. It's really interesting to see how Apple will benefit from this acquisition.

Dr Dre appeared in a video which was posted on Tyrese Gibson's Facebook page but was later taken down, perhaps for the language used:
“The first billionaire in hip-hop, right here from the motherf**king West Coast.”
However you can watch the re-uploaded video on YouTube here.



I get excited when I see such acquisitions. It adds interest to tech companies and I'm eager to see how it turns out. Apple could do with Beats the same thing it did with Siri, integrate it directly into Apple's products. But the worry is that Apple may kill Beats the same way it killed other companies after an acquisition. Let's hope that doesn't happen.

Sean Hollister from The Verge suggests that this purchase is to help promote the iWatch rather than for the streaming service or the headphones. His argument is that Beats has successfully sold expensive headphones due to a strong brand name rather than quality, and that's what Apple needs. I recommend you read his article here.

I'd like to know what you think about this? Are you happy or worried with such an acquisition? Is Apple about to get cooler?

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