The big problem with Apple's reported $3.2 billion Beats Audio acquisition
ELSA/Getty Images
Apple is reportedly on the verge of forking over a mammoth $3.2 billion for hip hop impresario and production legend Dr Dre's Beats Audio, turning Dre into a billionaire and ensuring that nobody will ever forget about him again.
Now, $3.2 billion is a drop in the bucket for Apple, which is sitting on a pile of cash of up to $150 billion. And Apple would get a lot in this deal — namely, Beats' headphone business and its audio streaming service.
Still, as Business Insider's Jay Yarow points out, this is a strange acquisition for Apple, a firm that prides itself on its perfectionism. Although Beats sells a lot of headphones, the headphones are widely panned by critics for their relatively poor sound quality.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
And Beats Audio's streaming service is far less popular than market leaders Spotify and Rdio. Many will wonder exactly why Apple chose Beats when they could probably have bought a less trendy competitor for much less.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
John Aziz is the economics and business correspondent at TheWeek.com. He is also an associate editor at Pieria.co.uk. Previously his work has appeared on Business Insider, Zero Hedge, and Noahpinion.
-
5 ladylike cartoons about women's role in the election
Cartoons Artists take on the political gender gap, Lady Liberty, and more
By The Week US Published
-
The right to die: what can we learn from other countries?
The Explainer A look at the world's assisted dying laws as MPs debate Kim Leadbeater's proposed bill
By The Week Published
-
Volkswagen on the ropes: a crisis of its own making
Talking Point The EV revolution has 'left VW in the proverbial dust'
By The Week UK Published
-
Racist texts tell Black people in US to prepare for slavery
Speed Read Recipients in at least a dozen states have been told to prepare to 'pick cotton' on slave plantations
By Peter Weber, The Week US Published
-
Australia proposes social media ban before age 16
Speed Read Australia proposes social media ban before age 16
By Peter Weber, The Week US Published
-
FTC bans fake online product reviews
Speed Read The agency will enforce fines of up to $51,744 per violation
By Peter Weber, The Week US Published
-
States sue TikTok over children's mental health
Speed Read The lawsuit was filed by 13 states and Washington, D.C.
By Rafi Schwartz, The Week US Published
-
Amazon ending 'Just Walk Out' grocery checkout
Speed Read In its place, the company will let customers scan while they shop with Amazon Dash Cart
By Peter Weber, The Week US Published
-
Justice Department bites Apple with iPhone suit
Speed Read The lawsuit alleges that the tech company monopolized the smartphone industry
By Rafi Schwartz, The Week US Published
-
House votes to force TikTok to sell or face US ban
speed read The House passed a bill to ban TikTok on national security grounds unless it sells to a non-Chinese company
By Peter Weber, The Week US Published
-
Apple kills its secret electric car project
Speed Read Many of the people from Project Titan are being reassigned to work on generative AI
By Peter Weber, The Week US Published