Apple Buys Beats: Why Pandora Shouldn't Worry

Before you go, we thought you'd like these...
Before you go close icon

On Thursday's episode of MarketFoolery, Chris Hill and Motley Fool Funds analyst Tim Hanson dive into some of the numbers circling around tech giant Apple's purchase of Beats By Dre. Seven months ago, HTC sold its Beats stake for about $260 million (valuing the company at about $1 billion). Today, Apple bought Beats for $3 billion in cash and stocks. With the company's last public reports showing 10% operating margins, Tim thinks Beats investors must be pretty happy.

Chris and Tim also explore Beats' past muddied partnership with HTC and the synergy between Apple and Beats. Tim has to ask, "Is Apple spending $3 billion here just to be cool?" Then, the guys look at the Beats brand and how this acquisition will impact the music landscape overall, including streaming music leader Pandora

Leaked: Apple's next smart device (warning: it may shock you)
Apple recently recruited a secret-development Dream Team to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out... and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, AND the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


The article Apple Buys Beats: Why Pandora Shouldn't Worry originally appeared on Fool.com.

Chris Hill and Tim Hanson have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple and Pandora Media. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Man Finds 5 Abandoned 'Puppies' In His Garden - Then Quickly Realizes He Made A Big Man Finds 5 Abandoned 'Puppies' In His Garden - Then Quickly Realizes He Made A Big
15 Recall the Kindest Thing a Stranger Ever Did for Them 15 Recall the Kindest Thing a Stranger Ever Did for Them
Man's Wife Leaves Him And Their Kids After A Fight - Two Days Later He Posts This Man's Wife Leaves Him And Their Kids After A Fight - Two Days Later He Posts This