Apple paid $3 billion for headphone and streaming music company Beats Electronics to try to play catch-up in the shift away from downloading music, said a leading Silicon Valley venture capitalist.
"This is a $3 billion bet that Jimmy Iovine is going to be able to join Apple and create a Spotify-killer," Geoff Lewis, a partner at Founders Fund, said on CNBC's "Squawk Box" on Thursday.
But Lewis expressed skepticism about whether the Beats co-founder and music insider can deliver. "This is a case of very, very different cultures coming together with a hope that Iovine is going to work his magic. I think it a long-shot, sort of ballsy acquisition."