Apple Inc. 'Silent' With Acquisition of 'Beats' Brand

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By Daniel Joseph Cruz | May 12, 2014 12:58 PM EST

The Cupertino-based tech giant's acquisition of "Beats," the popularly loved bass-loud headphones, will be Apple's biggest acquisition to date.

REUTERS/Toru Hanai/Files
Apple is likely to buy Beats Electronics.

Compared to the past acquisitions, Apple has bought Beats for $ 3.2 billion. Tech watchers, pundits and "experts" were quick to look down on Apple's latest business move, while others said it will truly benefit the company in the long run.

Beat's Founder De Dre will be the first person to benefit in the acquisition, making him hiphop's first billionaire. With Dre already having a net worth of $550 million, "this means that Dre would need only an additional $450 to make it into the billionaire boys club (sic) a sum that's roughly equal to a 15 per cent stake in Beats Electronics if the $3.2 billion valuation holds true," The Independent reported.

When it comes to what Apple will gain, its new feat with Beats won't just gain them new headphone technology.  It gives them a chance to dominate a larger market, which the Beats brand was estimated to sell half of all premium headphones in the world. Combine Apple's existing market hold in "iTunes" with the Beat's influence, and in a few years time Apple will surely gain more for what the $3.2 billion it paid for. Though Apple hasn't expressed what its plans are in the new acquisition, pro- and anti-Apple industry watchers can never be too sure what Apple's future will be with the Beats brand.

What Apple buys here is a brand. This is also the first time for Apple buying a huge brand that is already in the consciousness of the public. From there, Apple already has something to start with in promoting its Apple-Beats partnership.

"To say that it is unclear quite how Beats and Apple would fit is be an understatement. The news that the two were in acquisition talks has prompted head-scratching around the world," quoted in The Guardian.

Apple may soon break its silence with its acquisition of Beats when the deal's been made final. As of the moment, both companies have yet to comment on the acquisition.

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(Photo: REUTERS/Toru Hanai/Files / )
Apple is likely to buy Beats Electronics.
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