Apple To Buy Beats
Can you purchase street cred? Maybe for a a few billion dollars. Apple could get that and much more as reports are confirmed today that it is purchasing Beats, and Dre himself has come out on social media to (sort of) announce the deal.
The Financial Times was the first to report the mammoth, $3.2 billion deal, which would be the largest acquisition Apple has ever made. With the purchase, Apple will gain a hugely successful accessories maker; Beats’ signature headphones had taken over 59% of the market for headphones over $99 just five years after their release, turning high-end headphones into a mass market item not just for audiophiles anymore.
But perhaps more importantly, Apple will get Beats Music, their online streaming service. Apple has seen a decline in iTunes song purchase recently, spurred by the rise of subscription streaming services. This purchase could open up new avenues for Apple’s music service.
The day the news leaked, Beats co-founder Dr. Dre was in the studio with Tyrese Gibson, who posted a video that seemed to show Dre confirming the deal. Gibson later removed the video, but replaced it with a message offering more definite confirmation.
What do you think of the deal? Is this good for Apple, Beats, consumers, or everyone? Let us know in the Comments.