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Why Swell Acquisition for $30M is Beneficial to Apple?

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July 29
9:20 PM 2014

Following Apple's acquisition of Beats Electronics, the tech giant now turns to another possible iTunes enhancer - Swell.

Re/Code has sources implying that Apple is a doorstep away from finalizing a deal to purchase Swell, a news and podcast app for $30 million dollars.  The tech world is buzzing with predictions and suppositions that this deal may be the "Pandora's box of talk radio."  

This deal is quite small in comparison to the $3.2 billion acquisition of Beats Electronics, however, this may give the right leverage for iTunes radio to fuel up and move up in the industry.

Taking control of the streaming music market has been the goal of famous names like Amazon, YouTube and Spotify.  Apple wants to hold the reins on this market by accelerating the speed on getting know-how and knowledge.  It aims to shut down Swell app first, then, they will let the Swell team experts join the Apple force to take control of personalizing the audio requirements of iTunes users. 

Podcast usage continues to expand and develop throughout the world.  According to Pew, one quarter of the global internet users are delving into the world of streaming and downloading podcasts.  In addition to that, car drivers are one of its main markets.  Swell is noted to have slick user interface with car drivers.  They see the automobile as an optimal opening or gateway for widespread increase in audio streaming market.

Apple will not succumb to the pressure of massive declines in digital downloads. They will not allow iTunes to fail and become obsolete. Instead, they will join the bandwagon and take charge in entering the field of podcast while podcast-listening is still very much on the rise. Apple already has its musical beats team expertise and wide range celebrity arsenal backing them up.  Adding the Swell team to their farm of talent is supposedly a strategy that will bring them the kind of business they wantwhich will potentially address all the needs of Apple's iTunes.

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