We got the Beats

Late this afternoon the Twitter was sucking wind after The Financial Times broke this bit of news:

Apple is closing in on its largest ever acquisition with the planned $3.2bn purchase of Beats Electronics, the headphone maker and music streaming operator founded by music producer Jimmy Iovine and the hip-hop star Dr Dre.

The deal could be announced as early as next week, people familiar with the negotiations said, but they cautioned that some details had yet to be agreed and talks

Matthew Garrahan in Los Angeles and Tim Bradshaw | FT.com

According to the article, the “deal” has a few wrinkles that need to be ironed out, but that there is in fact a deal in the works appears to be confirmed by at least one or two additional sources.

As to why Apple would be willing to drop $3.2B on Beats, an amount making Beats the largest acquisition by the Cupertino company to date, there appear to be a myriad of rationales. First, with Beats, the high margin, high revenue, hardware oriented Apple gets to augment itself with another high margin, high revenue, hardware oriented  company. Second Apple could put Beats co-creator Mr. Iovine (AKA chairman of Universal Music Group’s Interscope, Geffen and A&M) to work on improving iTunes and/or merge it with Beats Music because apparently music streaming is a thing now. Third, it's all about the “brandz” these days and Beats has got crazy street cred with the kids these days, while finally Beats is a nice acqui-hire that brings into Apple a number of music industry connections and the usual assortment of engineers and product designers, hopefully one of whom can unveil to Apple the ancient Chinese secret of earbuds that actually stay in your ear.

Of course, should it turn out that the "Apple acquiring Beats" story actually originated on Secret, just pretend you never read any of the above.