Apple Beats Audio: Is it possible that Apple Inc. (NASDAQ:AAPL) could be looking to team up with Beats Electronics LLC? It would be interesting to see what would happen if the two companies were to form an alliance, being that some of the best minds in their respective industries would be working together.
Apple Inc. (NASDAQ:AAPL) is actually the smart money’s second favorite publicly traded company but hedge funds have started dumping Apple in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).
Reuters is reporting that the two sides are talking. Here is what they had to say:
“Apple Inc has held talks with Beats Electronics LLC, the audio technology firm co-founded by influential hip-hop producer Dr Dre and music mogul Jimmy Iovine, on a potential partnership involving Beats’ planned music-streaming service, three people familiar with the situation told Reuters.”
“Apple Inc Chief Executive Tim Cook met with Beats CEO Jimmy Iovine during a visit to Los Angeles in late February to find out more about Beats’ “Project Daisy”, a music subscription service the company announced in January but with scant detail, the sources said.”
As you can imagine, this type of service is right up Apple Inc. (NASDAQ:AAPL)’s alley. While it is said that the meeting with for “informational” purposes, it is safe to say that both sides have discussed how they may be able to work together in the future.
While everybody is aware of the fact that Apple has plenty of cash on hand, many don’t know that Beats Electronics LLC recently secured another $60 million in funding particularly for this project. Investors this time around, according to the same article, included “Warner Music owner Len Blavatnik, Fort Worth billionaire Lee M. Bass, and Australian financier James Packer.”
The music service is set to launch late in 2013. It will be interesting to see if Apple Inc. (NASDAQ:AAPL) is able to get involved in any way, shape, or form. Despite the fact that the recording industry has seen a downturn over the past 10 years, Apple is still interested in getting involved thanks to a new business model.
What are your thoughts on a potential partnership between the two companies? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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