"3 Top Secret Weapons Apple Gets Buying Beats By Dre" Listed By TheStreet
TheStreet details how purchasing Beats Electronics helps Apple.
TheStreet, which calls itself "a leading digital financial media company," has created a list, "3 Top Secret Weapons Apple Gets Buying Beats By Dre," which details how purchasing Beats Electronics helps Apple.
The list, which was created by TheStreet's Brian Sozzi, includes Beats By Dre President Luke Wood as one of these "secret weapons."
"This man is a true Swiss Army knife type of executive," TheStreet says. "He was in a band, and still produces music. He oversees the Beats by Dre supply chain. He oversees product design. The occasional Beats by Dre pop-up store, yeah he oversees them as well. Wood is a creative individual that could add value to so many areas of Apple, from iTunes, to product development...To even tag-teaming with new retail store leader Angela Ahrendts to inject badly needed cool into the stores...globally."
The other "secret weapons" listed are "A New Dimension to the Apple Store" and "Greater Share of Floor in Kohl's, Best Buy, Target, & WalMart."
The publication also points out other ways the acquisition could help Apple.
"The obvious things Apple gains from buying Beats by Dre include the company's R&D pipeline," TheStreet says. "My sense, studying the company is that its pipeline is robust. Its online streaming music player, and a built-in installed base of happy headphone owners likely to upgrade to an integrated listening experience in the next year or two."
As reported yesterday (May 8), Apple was set to purchase Beats Electronics for $3.2 billion, according to gizmodo. The site reported that the sale of the company owned by Dr. Dre and Jimmy Iovine would make Dr. Dre approximately $1 billion. Apple is reportedly set to own Beats Music and it could be the largest acquisition in Apple history. According to CNBC, the purchase also goes against Apple co-founder Steve Jobs' policy. Jobs, who died in 2011, "was reluctant to pursue high-profile acquisitions," according to the news outlet.
Dr. Dre appeared to celebrate the reported acquisition in a video with Tyrese. In the clip, Dre refers to himself as "the first billionaire in Hip Hop."