Apple’s $US3.2 billion acquisition of Beats probably won’t close until next week, according toPeter Kafka at Re/Code.
“That’s a longer timetable than some people expected as recently as a few days ago,” says Kafka. He doesn’t provide much detail beyond that. It doesn’t sound like the deal in jeopardy, though.
Many people are still puzzling over the move since it’s out of character for Apple.
For a relatively low price, Apple is getting three assets: A headphone business, a streaming music service, and talented, popular executives.
Reportedly, Apple became interested in buying Beats after it was impressed by Beats’ streaming music service.
Apple also gets the Beats headphone business which seems like it’s a high margin business supported by a strong brand. And it gets access to Jimmy Iovine, Ian Rogers, and Dr. Dre, three talented, influential people in the music business.
Still, Apple has never paid this much for a company. And it has never operated a big independent brand like this, which is what makes it such a surprising move.
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