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Apple eyes deal with Beats and confusion sets in for investors

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According to the Financial Times, Apple Inc. (NASDAQ:AAPL) is in talks to buy Beats for $3.2 billion. Beats consist of the headphones inspired by Dr. Dre and a streaming music service. This move would be in contrast to what Steve Jobs believed. Mr. Jobs had a held belief that people didn’t want to subscribe or rent music. If the Beats deal falls through, Apple would be heading in the direction of streaming and subscription instead of its current model of music downloads. However, investors are not lukewarm to the deal; investors would rather Apple focus on the iPhone and its cloud services. Another music service is not what investors were looking for! Apple usually acquires smaller firms, but Beats doesn’t fall in that category, which is confusing investors.