Apple Inc.'s Beats Acquisition: The Best $3 Billion It's Ever Spent?

Apple (NASDAQ: AAPL  ) investors have shifted their attention to the Apple storyline du jour, its World Wide Developers Conference, and for good reason.

During the keynote speech on Monday, Apple's executive team unveiled a sweeping series of fresh innovations and product upgrades that left the tech world buzzing. But the steady stream of news that's emerged from Apple's WWDC this week has largely overshadowed what could very well be the most important Apple storyline of the first half: its $3 billion Beats buyout that was officially announced last week

Source: Beats.

Apple bets big, wins big on Beats
Since Apple's announcement, we've seen more specifics emerge pertaining to the exact financial details behind Beats' business, which certainly helps shape our understanding of Apple's likely reasoning in consummating this deal.

We now know that $2.5 billion of the total $3 billion deal value was allocated to Beats' headphone business, which then also pegs a value of around $500 million for Beats Audio. And as Beats Audio remains a fledgling, albeit thus far well-received, business, this once again supports the idea that Apple truly wanted Beats for its executive team at the end of the day. In the following video, tech and telecom specialist Andrew Tonner looks at the financials of Apple's Beats buyout in greater detail.

This 1 wearables stock will put Apple to shame
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2982152, ~/Articles/ArticleHandler.aspx, 9/3/2015 1:40:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

Today's Market

updated Moments ago Sponsored by:
DOW 16,412.01 60.63 0.37%
S&P 500 1,958.12 9.26 0.48%
NASD 4,751.32 1.34 0.03%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 1:18 PM
AAPL $110.66 Down -1.69 -1.50%
Apple CAPS Rating: ****