Save up to 90% on a Hartford Courant subscription. Click here to sign up now!

Forrester Research Incorporated

Early reaction to Apple's $3.2-billion bid for Beats: Huh?

Early reaction to Apple's $3.2-billion bid for Beats: Huh?

Less than a day after news broke that Apple was in talks to acquire Beats Electronics for $3.2 billion, many observers were still scratching their heads.

Yes, Beats makes some popular headphones. Yes, it's launched a streaming music service, though one that appears to be off to a slow start. And yes, Beats has some serious brand buzz thanks to co-founder Jimmy Iovine and Dr. Dre.

That said, it was hard on Friday to find someone who thought the deal for Apple, at that price, made much sense.

In a note to clients late Thursday night, Gene Munster, a Piper Jaffray analysts who is generally bullish on Apple, said the company would be better off spending its considerable...