It's official. Apple is buying Beats for $3 billion. In a statement, Apple CEO Tim Cook said that the acquisition will "complement our product line and will help extend the Apple ecosystem in the future. Bringing our companies together paves the way for amazing developments which our customers will love."
Today’s poll question was: Do you think Apple's $3 billion purchase was the right decision?
At the time of this post, 64% said YES; 36% said NO.
Of those who voted YES, one person explained, “Google bought Nest. Facebook bought Oculus. Apple buys Beats. We'll see more of this, and Apple will take Beats (and other acquisitions) to a new level.”
Another YES voter agreed, nothing, “What is $3BB for a company with a market cap of $500 BB (sad that with their R&D budget that they have to buy innovation but when you lose the innovator and now have an operator...this is what happens).”
On the opposite end, these NO explained why they thought it was the acquisition was a bad decision:
- “Steve Jobs is rolling over in his grave. They gave away $3 Billion of his money for a headphone brand? Now its not just for your head! Introducing Beats apps, Beats hardware, Beats websites, Beats me over the head! Now not just your headphones will be overpriced and mediocre, your whole experience will be!”
- “What are they getting, other than a couple rich guys whom they just made richer?”
- “Beats are an expensive inferior fad product. If it remains hip and Apple improves quality it might have a chance.”
- “What could AAPL have done with that $3bn if it invested in building its own technology in that area? Even if it failed to win, it'd still likely be a better ROI than buying Beats. Whenever a company that has grown organically through such an astounding innovation agenda buys a headphone/hardware company, it says something about organic growth prospects. Bottom line: What would Steve Jobs think? Doubtful that he'd like this one.”
- “They could've bought anything. ANYTHING. Forget home automation. Forgot in car dash displays. We want headphones!!!!!!”