NEW YORK (TheStreet) -- Apple (AAPL) confirmed a deal to buy Beats Electronics for $3 billion on Wednesday, ending a month of speculation on a deal that was leaked weeks ago.
Beats will remain separate from Apple. Apple will continue to operate its iTunes music store, while Beats, a high end headphone maker and subscription based music service, keeps its branding.
Apple is paying for the acquisition with $2.6 billion in cash and $400 million in stock options representing the largest acquisition the tech giant has ever made.
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TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLE INC (AAPL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows: