Beats by Dre: What does Apple stand to gain?

On May 28, 2014, Apple Inc (Apple) announced that it was acquiring Beats Music and Beats Electronics (collectively 'Beats') for a total of $3bn, its most valuable acquisition to date. This case study assesses the Beats business, as well as the motivation for the high-profile deal, which was completed on August 1, 2014.

Scope

Analyzes Beats' historical product and marketing strategy.

Examines synergies between Apple and Beats' businesses, assessing the reasons behind the acquisition.

Reasons to buy

Which markets has Beats targeted, and how do they compare to Apple's recent movements?

What are the key aspects of Beats' business that drove Apple's decision to make its biggest acquisition to date?

How will the acquisition serve to boost Apple's future business?

Companies mentioned

None

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