Poll: Is Beats Really Worth $3.2 Billion?

One of last week’s most-talked-about stories was the rumor that Apple is set to announce its acquisition of Dr. Dre’s audio company, Beats Electronics. The alleged purchase price: 3.2 billion dollars. Yep, billion. And while it hasn’t been officially announced yet, tech websites and business writers are all over the potential transaction. They’re all speculating as to why Apple is willing to pay so much money for Beats: The headphones? The marketing power of the ‘Beats’ name? Or is it some other cool potential product we don’t know about yet?

Whatever the reason is, if and when the deal is announced this week, it’s definitely going to be huge news. What do you think: Is Apple spending too much money on this purchase, or are they making a sound investment?

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Tell us why or why not in the comments below.

Comments

Comments

4 thoughts on “Poll: Is Beats Really Worth $3.2 Billion?

  1. Mitchell M says:

    This is another case of expensive branding. Over 50% of the cost comes from that simple little logo on the outside of the earphones, but unless “fashion” and materialism runs that deep in you, then it is what’s on the inside of the product that really matters. No don’t get me wrong, beats are terrible headphones by any means, they are actually quite good. The problem lies in the price. A true audiophile would never dell out the much dough for a silver plastic/metal “b”, they strive for quality. To answer the question, in some ways Beats is worth the billions that it is just because it is marketed well and is not /terrible/ (just as could be said with iPhones and other Apple products).

  2. Rob Nevico says:

    If you remove the logo, they are basically colorful, yet mediocre headphones which can be easily rivaled by even some ten dollar sets at Target.

  3. Jonathan Montalvo says:

    What I believe people aren’t understanding is the fan base that beats have brought to the world, not to mention the beats app which I believe is the main reason why they have bought beats as a whole. Apple has tried to hit the music stream like Spotify and Pandora, here comes beats with their own which is quite successful.

  4. Anatoliy Adamitskiy says:

    The biggest thing that people can’t see is the fact that ITunes is slowly dying. Most people are switching to streaming services like spotify. Apple acquiring Beats is a step into a world where we no longer have to pay per song or album, instead we’re going to spend $9 or so a month to get all the music we want to listen to. Now the biggest problem with streaming services like pandora one and spotify is that they don’t pay the artists well. This is the biggest thing that has held Apple from a paid streaming service. Here comes Beats music, a streaming service that actually pays artists well and puts the artists first. This is the biggest reason for such a huge acquisition. But also their headphone business. Leaving the Beats headphones alone an still operating as a separate business, apple will use Beats’ expertise on headphone technology to redevelop their own earbuds for better and more comfortable use. 3.2 Billion could actually be a very cheap investment for Apple. If anyone can grow this even bigger, It’s Apple. After all they have almost 300 Billion in cash so this is just pocket change for them.

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