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.
Create an account with the same email registered to your subscription to unlock access.
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.
-
What are Lucy Letby's grounds of appeal?
In depth Convicted former nurse's legal team claims judge at original trial wrongly refused her applications
By The Week UK Published
-
Grindr 'shared user HIV status' with ad firms, lawsuit claims
Speed Read LGBTQ dating app accused of breaching UK data protection laws in case filed at London's High Court
By Rebecca Messina, The Week UK Published
-
The best dog-friendly hotels around the UK
The Week Recommends Take a break with your four-legged friend in accommodation that offers you both a warm welcome
By Adrienne Wyper, The Week UK 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
-
Cellphone use may be lowering sperm count
Speed Read Electromagnetic radiation could be affecting male fertility
By Devika Rao, The Week US Published
-
Nasa reveals first findings from asteroid that could explain origins of life
Speed Read Sample from Bennu has been found to contain an abundance of water and carbon
By Jamie Timson, The Week UK Published
-
NYPD to monitor Labor Day parties using surveillance drones
Speed Read
By Justin Klawans Published
-
Elon Musk announces change to Twitter logo
Speed Read
By Justin Klawans Published