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Sozzi: 3 Top Secret Weapons Apple Gets Buying Beats by Dre

NEW YORK (TheStreet) -- Apple (AAPL - Get Report) to gobble up Beats by Dre for $3.2 billion? That is the late-breaking rumor that awoke Twitter from its Janet Yellen testimony hangover. Having studied Beats by Dre extensively for a project I had been working on, here is a tidy list of the secret weapons Apple would receive for its mere $3.2 billion.

Beats by Dre President Luke Wood

This man is a true Swiss Army knife type of executive. He was in a band, and still produces music. He oversees the Beats by Dre supply chain. He oversees product design. The occasional Beats by Dre pop-up store, yeah he oversees them as well. Wood is a creative individual that could add value to so many areas of Apple, from iTunes, to product development (you see those slick-looking new wireless Beats headphones for $299.99?) to even tag-teaming with new retail store leader Angela Ahrendts to inject badly needed cool into the stores...globally.


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A New Dimension to the Apple Store

A dedicated Beats by Dre section in an Apple store -- why not? By carving out a space for Beats by Dre, Apple would infuse another premium product into its stores. Say hello to the Beats by Dre branded earbud wearable device!

Greater Share of Floor in Kohl's, Best Buy, Target and Walmart

Listening stations for Beats by Dre products exist in all of these major retailers, and an acquisition would allow Apple to cross-promote in an array of manners. For instance, think a free download from iTunes, signaled to a person via iBeacon, simply for walking over to a Beats by Dre listening station at Kohl's (KSS - Get Report), Best Buy (BBY - Get Report), Target (TGT - Get Report) and Walmart (WMT - Get Report) and tuning into a single track for a minute.  BTW, Beats by Dre also has a sweet deal with Chrysler, so Apple gains further access into the land of automaking.

Yes, the obvious things Apple gains from buying Beats by Dre include the company's R&D pipeline (my sense, studying the company is that its pipeline is robust), its online streaming music player, and a built-in installed base of happy headphone owners likely to upgrade to an integrated listening experience in the next year or two.

Note: when reached for comment on the speculation about the deal, Beats by Dre declined comment.

What do you think about a potential deal between Apple and Beats? Take the following poll and tell us:

>>Read More: Apple Looking to Buy Beats Electronics for $3.2 Billion: Report

>>Read More: Why the iPhone Continues to Dominate

-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

At the time of publication, Sozzi held no position in the stocks mentioned.

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