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
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.