Apple paid ~10% of its $35b 2013 free cash flow* for Beats, a company with a software-side growth story and actual positive free cash flow of its own driving in

Apple paid ~10% of its $35b 2013 free cash flow* for Beats, a company with a software-side growth story and actual positive free cash flow of its own driving investment in the software piece. Apple: spinning off cash, buying companies that themselves spin off cash. A delight to see P. Oppenheimer's conservative approach thriving. Financially, Apple is a thrilling company to watch. * N.B. That's actual GAAP free cash flow. It is pure cream. What better than to accrete to FCF while acquiring, as noted by @onedev, some terrific assets, personnel, and goodwill. This is a smart and cheap move.