The potential $3.2 billion deal between Apple and Beats International—the headphone company founded by West Coast rapper Dr. Dre—fixes a major problem at the tech giant, CNBC's Jim Cramer said on Friday.
Apple seems to have lost its cool in recent years, and Beats gives it a much-needed edge in that department, Cramer said. What's more, the potential deal provides an offensive boost to Apple 's iTunes as it loses users to growing competition from streaming services such as Spotify and Pandora, he added.
"It's not a dumb deal, because they have so much money," Cramer said on "Squawk on the Street." "It's a rounding error. And by the way, they need to be cool. One of the problems that Apple has is that it's not cool. It used to be. You always expected that. [Beats] are the definition of that."
The Financial Times first reported the deal Thursday evening, saying Apple was close to reaching an agreement with Beats International. Actor Tyrese Gibson, however, may have celebrated too soon. He posted a video to social media on Thursday night that depicted him celebrating with Dre. The video was taken down Friday morning.
Cramer said the deal also bolsters Apple's defenses in the automotive entertainment space. The tech company has enough cash, though, to completely dominate the audio and music scene, he added.
Apple could consider buying audio company Harman for $10 billion and streaming music service Pandora for $6 billion, he added. Both are fixtures in the automotive entertainment industry, and such a deal would create "a $16 billion colossus that would own both streaming music and 250 million cars," Cramer said.
"Maybe I'm just a big thinker and I should put my headphones on and go home," Cramer added.
Disclosure: Cramer's charitable trust owns Apple shares.
—By CNBC's Jeff Morganteen.