World famous and popular headphones with their famous “b” logo could soon be arriving in package along with the newest iPhone model, because Apple supposedly plans to buy the company Beats Electronics for 3.2 billion dollars.
Will the Beats be branded like this in the future?
World media has exploded and the reports are coming in that the deal is near closure and that the IT giant from Palo Alto is soon going to announce its biggest purchase of a company ever. Beats Electronic is owned by a famous rapper, music producer and businessman Dr.Dre.
Financial Times has supplied us with information that the possible deal is about to be closed next week, and it is said that Apple would be buying Beats music streaming service and the department for making of audio equipment.
Headphones “Beats by Dre” have become the status symbol in last couple of years, much like the iPhone in 2007. and the company who makes them has later expanded its business to music streaming.
The purchase of Beats could mean that the head of Apple Tim Cook has decided to change the company’s strategy significantly.
His predecessor Steve Jobs is famous for transformation of the music industry with iTunes and iPod nearly ten years ago.
However, iPod devices are in decline, and there is a possibility that Apple is planning to turn to big acquisitions in order to revert the trend.
With the purchase of Beats streaming service Apple gains additional power in battling its rivals like Spotify or Pandora.
This acquisition could be even bigger then the one in 1996. when Apple bought Steve Job’s company NeXt for 404 million dollars.
At the beginning of 2014. CEO of Apple Tim Cook has said that he hasn’t got nothing against spending huge amounts of money on certain business moves. Tim Cook has 133 billion dollars available for purchases.
“I haven’t got any problems to spend billions if the purchase of the right company is the right long term move for Apple, none what so ever” – Cook said.
Founders of Beats Electronics Dr. Dre and Jimmy Iovine own around 25% of the shares, HTC has backed down from the company, and after some US investments and investments from Carlyle Group the estimated value of the company is 2 billion dollars.
Apple is allegedly ready to pay much more, so analysts are doubting that Beats has succeeded in hiding something from the competition.
“This is something pretty confusing, because companies are purchased in order to gain technology or users that other people don’t have, there must be something well hidden in the Beats Electronics” said Forester analyst James McVivi for BBC News.