Wall Street Knocks Apple’s ‘Beats’ Acquisition

“To see this kind of money spent for a company that gets most of its revenue from hardware business is not what we want to see,” said Dan Niles, chief investment officer of hedge fund AlphaOne Capital Partners

“We never like to see a company buy something for $3 billion when a few months ago it was worth about $1 billion [based on the valuation when private investors bought a piece of the company in September]. We wonder whether this is an appropriate use of shareholder cash.” – Patrick Becker Jr., portfolio manager at Becker Capital Management

“Streaming music is a way more interesting space to dominate compared to big ass headphones but buying Beats isn’t going to get Apple there,” said Josh Stewart, portfolio manager of the Wasatch World Innovators Fund.’

We’re no financial experts here, but it doesn’t take one to realize that the analysts at Wall Street lack the creative vision to see what a merger like this means.  It represents more than just a company’s valuation, statistics, and promises of growth.   It represents commitment to marketing, consumers, culture, and maybe most importantly, music.  Yea, we have to see what Apple’s plans are with this, but no doubt it’s got everyone talking and excited.

SIDENOTE:  Not many people are mentioning Will.I.Am’s 5% share in this deal.  Congrats!!!

ANOTHER SIDENOTE: Does Dre look like a fish out of water in these exec deals to anyone else besides me?