Beats Brand Bought By Apple For $3 Billion

Apple today bought the Beats brand which includes Beats headsets and Beats Music for $3 billion. Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as part of the deal. Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4. So, why buy Beats? The subscription service called Beats Music would be at the top of the list. Sure Apple could have built a subscription music service rather than buying one. But buying one gets them into the game immediately. Besides, Apple buying companies to get a jump into an area that they weren’t in is not new for them. I suspect the electronics business was a throw in.

This should be fun to watch.

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