Sign up to receive 5 free days of our daily summary for tech news.

Introducing our newly updated org charts. Browse our org charts on companies like Uber, Facebook, and Airbnb all in one place.

Read this article for free.

Already a subscriber? Log in here

Apple

Why Beats is a Great Buy for Apple

Apple finally announced it is buying Beats Electronics for $3 billion, ending speculation about one of the most dissected tech deals in recent memory.

Since word of the deal leaked in recent weeks, many tech and media observers have been a scratching their heads: Why would the world’s most profitable hardware company spend $3 billion to buy a headphone company? Why would Apple want Beats’s streaming music service, with its small base of 200,000 subscribers, when it already has its own? And isn’t subscription music becoming commoditized anyway?

We will find out more later Wednesday when executives from both companies take the stage at the Code conference in Southern California. But I think the skeptics are dead wrong. The deal—Apple’s largest acquisition ever—is a shrewd move, and to see why you have to look beyond hardware or even streaming music.

What Is The Information?

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting, stories, and exclusives you won't read anywhere else from the largest newsroom in tech.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Go deep into areas like crypto and VC diversity—or get real-time analysis of breaking news—via conference calls with our reporters and other experts.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, subscribers get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

Access the best reporting on the tech industry read by tens of thousands of global executives.

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Share with your team

Subscribers can unlock any article and share it with friends and co-workers through a special share link.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Startups

These Startups Want to Revolutionize Health Care, Gaming and Transportation

By The Information Staff

Facebook

To Rebuild Trust, Facebook’s Zuckerberg Looked to Microsoft

By Nick Wingfield

Apple Semiconductors

Apple Developing Modem as Chip Efforts Expand

By Aaron Tilley

Amazon Cloud

AWS Renewable Energy Efforts Hit Speed Bumps

By Priya Anand

With Mr. Iovine and Beats, Apple is boosting its odds that it can come up with that next killer music deal that no one else can, at least for a long enough period of exclusivity.