On May 8, news broke that Apple (NASDAQ:AAPL) is in the late stages of negotiations to acquire Dr. Dre and Jimmy Iovine's Beats Electronics for $3.2 billion. The news was quite a surprise to investors. Not only is $3.2 billion eight times the price of Apple's largest acquisition to date, but this is also the first time the company has acquired such a well-known brand. Even more, Bloomberg is reporting that Apple plans to keep the brand around after the acquisition.
As Fool technology specialist Daniel Sparks explains in the video below, such a move could signal that Apple is opening up to a broader conglomerate strategy. With the Street concerned with Apple's slowing revenue and net income growth, buying into new business opportunities could help Apple address this problem.
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Daniel Sparks owns shares of Apple. The Motley Fool recommends Apple, Berkshire Hathaway, and Facebook. The Motley Fool owns shares of Apple, Berkshire Hathaway, and Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.