Beats is a company that not only produces headphones, but they have also launched a music streaming service of their own that could be thought of as a competitor to Apple’s iTunes Radio. That being said, an interesting report from The Financial Times (paywall) has surfaced that seems to suggest that Apple could be gearing up to acquire the company.
The deal has been rumored to cost Apple a whopping $3.2 billion, but then again with all that money Apple is sitting on, we’re sure that they can afford it. In fact Apple’s CEO, Tim Cook, has stated in the past that they are more than willing to make 10-figure acquisitions as long as it made sense.
We’re not sure what Apple will be doing with the Beats brand or their technology. Could it be that Apple plans to bundle Beats earphones in future iOS products in place of their EarPods? Could Apple be thinking about launching high-end headphones of their own? Also, could it mean that Beats Audio technology will make its way into future iOS/Mac products?
This is an interesting situation because Beats already has deals with companies like HP and HTC which sees their technology being used in the two company’s products, so we’re not sure how this will work out once Apple acquires them. Now assuming that everything goes through, the deal could be announced as early as next week. Other publications such as Bloomberg and The Wall Street Journal have similarly “confirmed” the deal via their own sources as well.
For the most part Apple’s acquisitions have been more about acquiring new technology and patents (such as acquiring companies to create Siri, Apple Maps, and etc.), which is why many are confused and surprised by this move. What do you guys think? What does Apple have planned for Beats?