Two mega giants may be about to collide. Apple and Beats could come together in a new acquisition.
Apple, the highly successful computer company, and Beats, which are a high-end audio brand by Dr Dre, are expected to become one; as Apple moves to buyout the firm.
Reports claim that Apple is willing to pay up to $3.2bn for Beats, in a deal expected to be revealed next week. This would mark Apple’s biggest splashing of cash, yet. The Financial Times was first to report the deal.
You might find this a puzzling acquisition; but funnily enough, there is more between Apple and Beats than meets the eye. An analyst for Forrester, James McQuivey, commented on the two firms, and suggested that the company shares a lot of customers:
“This is really puzzling,” he said. “You buy companies today to get technologies that no one else or customers that no one has. They must have something hidden under the hood.”
In some senses, that statement is very true. Apple is a high-priced brand, Beats too, and if you’re into music, the likely chances are that you have at least heard of Beats. Apple has its roots in music, and Beats is a new (but highly influential) kid on the block in the industry.
If we think about how the two might combine, Apple needs help in streaming. iTunes Radio, if you even know what that is, hasn’t gone far. Beats’ streaming experience could be useful and background in headphones a nice addition to the ‘perfectionists’ that are the Apple designers.
Time will tell if Apple seals the deal, and dances to Beats’ tune.