Like many other rich companies, Apple also periodically buys smaller scale companies which hold patents or products considered useful for enriching their own technological baggage. Unlike other companies, Apple focuses on fabulous non discrete amounts of money. According to a rumor, Apple is preparing for the most expensive acquisition to date, and the company concerned is a very well known one: Beats Electronics.
The producer of expensive headphones and portable speakers, the famous Beats is not a company really appreciated by audiophiles, but is instead a very popular name among ordinary users who are attracted by fashion trends rather than radio quality without compromise. According to the Financial Times, Apple is very close to completing a full takeover of the company for the amount of $3.2 billion, the most expensive acquisition made by the company so far. According to internal sources that brought media attention to this info, the contract is not yet perfected, but negotiations are in an advanced stage and the successful completion of these could result in an official announcement somewhere net week.
Apple is not the first mobile phone manufacturer which is attracted by Beats. Perhaps readers will recall, in 2011, HTC bought a 50.1% stake in Electronic Beats for the sum of 309 million dollars and used the name of the company to promote their products, but gave up this commitment when he hit known financial problems for a profit of 85 million dollars.
The famous and pricey products are not the only targets in Apple’s sight, the use of the famous name in a similar manner like HTC did is of no concern, keeping in mind how Apple cares about its image in the media. Beats also launched its own streaming service and Beats Music and Apple might be interested in taking to develop its iTunes Music Service.
The famous digital store, iTunes, was basically selling music services that have been successful, but such businesses are beggining to fade in the face of demand for streaming services such as Spotify, Deezer and Pandora, or iTunes Radio, which so far did not receive much acclaim. Following this acquisition, Apple could benefit from both the platform and the experience of Beats Music behind it, and the rumor that Jimmy Lovine could get behind Apple’s team as a Special Adviser makes us belive thats the company’s intention.
Even if the transaction is completed, Apple does not disclose how it intends to use the purchase, so we would have to have patiente to see the direction in which things will evolve.
I’m more curios on how the prices will carry on after the purchase will be made, but I’m sure the stores will tell that story when the time comes hehe.