It’s been a crazy week on the financial side of the music and tech industry. Warner Music Group, Universal Music Group and Sony Music Entertainment have purchased $3 million shares each in Shazam Entertainment, creators of the immensely popular music app which identifies songs based on listening to them using your smart phones mic.
Shazam is currently a private company planning to go public with an IPO. The trio of music labels also owns a portion of Spotify the music streaming service and Universal also owns a 14% share of Beats headphones rumoured to be sold to Apple for 3.2 billion dollars. 3.2 billion seems to be a popular number these days when you’re buying or selling a company. Smart Thermostat maker NEST was recently sold to Google for 3.2 billion and now Beats Electronics, makers of the Beats headphones by Dr. Dre, is rumoured to be in negotiations with Apple to sell for …. wait … you guessed it 3.2 billion dollars. Hey guys … if you’re looking to buy an integration company, I’ve got one I’d sell you for … 3.2 billion … just saying.
Currently the sale of Beats to Apple is strictly a rumour, Apple has made no official word to confirm or deny the purchase of Beats but if the rumour is true it will be the largest acquisition Apple has ever made and according to Forbes at 3.2 billion, Apple will be paying a hefty premium for the headphone manufacturer. Forbes estimates the value of Beats Electronics at about $2 billion.
What exactly Apple would do with Beats if they did purchase them is unclear. Sure they could package Beats headphones with iPhones and iPods. Beats audio processing could be incorporated into iPhones, iPads, iMacs and Macbook Pros but odds are Apples primary interest in Beats might be Beats Music streaming service. Some analysts are predicting the sale of Beats to Apple might come as soon as next week while others discredit the rumour saying it won’t happen at all. Apple is making no comment at this time… Say tuned.
Sources: forbes, wall street journal, the music network