Why does Apple (NASDAQ: AAPL ) want to acquire Beats? That's the key question investors are asking as they digest the news that the company is in the final stages of negotiations to acquire the company for a staggering price tag of $3.2 billion. While the company's premium headphones business is certainly successful, Fool technology specialist Daniel Sparks thinks that Beats' new streaming music may also be one of the key reasons Apple wants to acquire the company.
What's so special about Beats Music? After all, the new streaming music service only boasts about 200,000 subscribers based on a recent estimate by Re/Code. That's a far cry from Apple's nearly 800 million iTunes accounts. The magic may be in Beats' success at convincing members to pay a premium dollar for the service.
In the video below, Daniel takes a look at leaked numbers that are allegedly internal numbers from Beats on the company's paying members. Daniel explains why the data suggests Beats Music may have a promising future.
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