An Apple a Day Acquires a Dr Dre – Apple Buys Beats for £1.88bn
According to the FT, negotiations between Apple and Beats are in progress as Apple seeks to acquire the company for a hefty $3.2 billion (£1.88 billion). This will of course include Beats Music (the online music streaming service) but none the less this is a big purchase, particularly for Apple.
If the information in The FT published is correct then this would be the largest acquisition Apple has ever made by a substantial margin and breaks the trend for Apple which, as a company, usually acquires smaller emerging brands.
If this acquisition does go through it would be nice to see an increase in new ideas and developments from Apple as in recent years they just seem to be developing already existing ideas rather than surprising us with something brand new that we never knew we needed!
Since the FT release, Dre has since semi confirmed teh purchase himself by appearing in a video with actor Tyrese Gibson that was posted on Facebook (but has since been removed) where Dre is congratulated on the acquisition. To which he responds “The first billionaire in hip-hop, right here from the motherf**king West Coast”
Of course, Apple is famous for seeking inspiration internally rather than relying on acquisitions or outside influences. But maybe this indicates a turn of tide?
According to The FT, the Beats management team will report directly to Tim Cook (Chief Exec of Apple) who recently advised that Apple were looking for more acquisitions both large and small… a bit of a change from Apple’s usual behaviour, where they are more than hesitant when buying almost anything.
Currently there are no real clear reasons as to why Apple would buy Beats other than the fact the company has grown successfully and substantially over a very short space of time but we really hope they put their ideas together and Apple gets better sounding headphones supplied with their products and Beats headphones get taught a lesson in general build quality.
According to Cook, “we (Apple) are not in a race to spend the most or acquire the most. We’re in a race to make the best products that enrich people’s lives.” Hopefully this is a good sign of things to come although he did then go on to say that Apple has purchased 24 companies over the past 18 months which does kind of contradict this statement.
Either way we’ll have to wait any see…