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Apple to reportedly announce Beats deal this week at lower $3 billion price

post #1 of 99
Thread Starter 
Adding to the never-ending stream of scuttlebutt surrounding Apple's hyped buyout of Beats Electronics, a report on Tuesday claims the terms of the supposed acquisition have dropped to $3 billion and will be announced this week.



Citing unnamed sources close to the ongoing discussions, The New York Post reports the initial $3.2 billion number leaked when Apple was still in the process of quantifying Beats' worth as a company. In the intervening period, the Cupertino, Calif. company has lowered the price to a current $3 billion and will reportedly announce the purchase by the end of this week.

"Apple hadn't even begun its due diligence process when news of the number came out," a source said.

Elaboration on the numbers, the publication said Apple is placing a high value on Beats' high-margin audio hardware business that recorded $1.3 billion in sales in 2013. While some have speculated that Apple's interest lies in rolling Beats Music into its iTunes Radio streaming service, sources say this is not the case.

"Apple doesn't have a streaming music business so it would be a nice instant get, but the hardware is the profitable business," one person said.

In a breakdown of who will walk away with what, the publication estimates Beats co-founders Jimmy Iovine and Dr. Dre will take home hundreds of millions of dollars, while stakeholder Universal Music Group will get more than $400 million on a $3 billion deal.

Ironically, Dre, whose real name is Andre Young, will fall just short of joining the billionaire's club after adding a pre-tax windfall of $750 million from the supposed Beats sale to the $275 million he earned over the past three years. In a video posted to model/actor Tyrese Gibson's Facebook page, Young boasted of being the first billionaire in hip-hop.

Finally, The Post's sources corroborated an earlier rumor that Beats cofounders Jimmy Iovine and Dr. Dre will attend Apple's Worldwide Developers Conference on June 2.
post #2 of 99
There goes the thread....
post #3 of 99
Wow, you rarely see a picture of Jimmy without a ball cap on...
post #4 of 99
Oy vey Apple...
Quote:
Apple has also apparently just begun doing its “due diligence” on Beats. When the original $3.2 billion number was leaked, the company had not yet done any of that, and since it started, it has apparently dug up some unsettling information.
post #5 of 99

Yay! Go Apple.

post #6 of 99
Good. Now we can finally get past the hand-wringing. /s

Well, I hope one poster in particular will be struck dumb with disbelief.
post #7 of 99

As an investor, it's nice to see apple paying so little for a company that will add shareholder value immediately through physical earnings. 

post #8 of 99

IF this latest rumor does not see an announcement by the end of THIS week, will ALL of the publications (Financial Times, Bloomberg, New York Times, Wall Street Journal, Forbes, Fortune, Seeking Alpha, Fox Business, CNBC, New York Post, etc.) stop writing about the rumor? :-) No!

post #9 of 99
Now go buy Flappy Bird with that .2Bil you just saved !!!
post #10 of 99
Quote:
Originally Posted by leavingthebigG View Post
 

IF this latest rumor does not see an announcement by the end of THIS week, will ALL of the publications (Financial Times, Bloomberg, New York Times, Wall Street Journal, Forbes, Fortune, Seeking Alpha, Fox Business, CNBC, New York Post, etc.) stop writing about the rumor? :-) No!

Don't be silly, of course not.

 

Page views = ad impressions.

 

That's all mainstream media cares about in 2014. True journalism died in the Nineties.

post #11 of 99

look forward to seeing if this is true on June 2nd

post #12 of 99
Quote:
Originally Posted by Flaneur View Post

Good. Now we can finally get past the hand-wringing. /s

Well, I hope one poster in particular will be struck dumb with disbelief.
Quote:
Apple has also apparently just begun doing its “due diligence” on Beats. When the original $3.2 billion number was leaked, the company had not yet done any of that, and since it started, it has apparently dug up some unsettling information.

John Browett all over again?
post #13 of 99

I was beginning to think the whole thing was just a publicity stunt by Beats.

 

Well, I suppose that could be true even if Apple does buy them. They're far more likely to be the source of all the leaks than Apple is.

post #14 of 99
Quote:
Originally Posted by Rogifan View Post

Oy vey Apple...

That part of the "story" doesn't strike you as odd? It's hard for me to imagine that any company, much less Apple, would make an offer for a company that they haven't looked into.

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post #15 of 99

Jimmies suit is very nice in that photo though.

post #16 of 99
How long until the dr. posts?

I still don't see it happening. Color me surprised if it's confirmed.
post #17 of 99
Quote:
Originally Posted by SolipsismX View Post

That part of the "story" doesn't strike you as odd? It's hard for me to imagine that any company, much less Apple, would make an offer for a company that they haven't looked into.
Yes it does. Except if Apple is rushing to get something finalized to announce at WWDC. God I hope not. This isn't the first story though that mentioned Apple uncovering some questionable things. I believe the Billboard story said the same thing.
post #18 of 99

There have been plenty of people defending this supposed deal, claiming that it's not about the headphones, it's about the streaming service.

 

And the article in the OP is saying the exact opposite of that. :lol: 

post #19 of 99
Quote:
Originally Posted by Rogifan View Post

Yes it does. Except if Apple is rushing to get something finalized to announce at WWDC. God I hope not. This isn't the first story though that mentioned Apple uncovering some questionable things. I believe the Billboard story said the same thing.

I don't get why these "stories" make it sound like Apple changed course after learning about it from the rumour sites.

At this point we have no reason to believe Apple will make a foolish acquisition decision, and we should assume that if they are going to make such a large purchase that will put in the time to make sure it's worth the price.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #20 of 99
Quote:
Originally Posted by Rogifan View Post

Yes it does. Except if Apple is rushing to get something finalized to announce at WWDC. God I hope not. This isn't the first story though that mentioned Apple uncovering some questionable things. I believe the Billboard story said the same thing.

Apple doesn't rush things.
post #21 of 99
Stream of scuttlebutt surrounding

Love the alliteration!

Are thar rumours realistic or really reaching? Beats me.
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post #22 of 99
Quote:
Originally Posted by Apple ][ View Post
 

There have been plenty of people defending this supposed deal, claiming that it's not about the headphones, it's about the streaming service.

 

And the article in the OP is saying the exact opposite of that. :lol: 

 

Of course the headphone line is of interest.  Beats are one of the best selling headphone brands and have high margins.  Why wouldn't Apple want them?  Some say that Beats headphones are overpriced for what you get, but a lot of people say that about Apple products too.  Ask people who spent $150-250 on a pair of Beats headphones if they're happy with their purchase and I'd imagine that most are more then happy with them.

post #23 of 99
Quote:
Originally Posted by Apple ][ View Post

There have been plenty of people defending this supposed deal, claiming that it's not about the headphones, it's about the streaming service.

And the article in the OP is saying the exact opposite of that. lol.gif  
We always knew it was about the headphones because the headphone business is the only thing that could maybe justify the price. Something still doesn't add up here though. Apple just doing due diligence now AND announcing the deal this week makes no sense.
post #24 of 99
Quote:
Originally Posted by jungmark View Post

Apple doesn't rush things.
Let's hope not. Besides I'm sure they have plenty of other stuff to talk about at WWDC. Announcing an acquisition there (or even having the guys on stage) would take away from everything else they're announcing.
post #25 of 99
I guess that combustible minute-long video the cackle-mouthed Dre concocted cost him $200,000,000. Should help fund Apple's legal fees for a few years.
Edited by Benjamin Frost - 5/30/14 at 5:44pm
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post #26 of 99
Quote:
Originally Posted by Rogifan View Post

Quote:
Originally Posted by jungmark View Post

Apple doesn't rush things.
Let's hope not. Besides I'm sure they have plenty of other stuff to talk about at WWDC. Announcing an acquisition there (or even having the guys on stage) would take away from everything else they're announcing.

Let's hope not? So you want Apple to rush things? I think you meant let's hope so.
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post #27 of 99
Quote:
Originally Posted by DroidFTW View Post
 

Of course the headphone line is of interest.  Beats are one of the best selling headphone brands and have high margins.  Why wouldn't Apple want them?  Some say that Beats headphones are overpriced for what you get, but a lot of people say that about Apple products too.  Ask people who spent $150-250 on a pair of Beats headphones if they're happy with their purchase and I'd imagine that most are more then happy with them.

 

Yeah, that's what all the Apple haters are saying. Apple and Beats is a perfect match, because they both sell overpriced products to sheep. I also notice that quite a few Apple haters, not just on this forum, but across the net, are mysteriously in favor of this deal. That ought to make anybody suspicious.

 

I never thought that Apple would lower itself to this level, because it's not just about the money. There are plenty of profitable companies around that Apple can snap up, if they wanted to.

 

I buy and use Apple computers and devices because they're the best around. If this Beats deal is indeed real, then I guess that I will have to stay far away from any Apple or Beats headphones in the future if they merge, as they are not on the same level that Apples' computers and devices are, and I am disappointed that Apple would buy such a company that is not known for being the best. I don't give a crap about how many weird looking people buy their headphones. Plenty of people buy Android phones too, and Beats was actually a part of certain Android phones for a long time. I thought that Apple was only interested in perfection and the best, but maybe that has changed.

 

We still need to hear the details about this deal of course, and what exactly it means for Apple, but I was skeptical when I first heard about this deal, and I remain skeptical.

post #28 of 99
I think Dr. Dre should team up with drblank. They could create rap with real musicians. drblank could teach Dre what real music is, Dre could nod his head in sombre agreement, drop to his knees in penitence for the error of his ways and the rap - with real music - begins:

Doe, a deer, a female deer
Dre, a drop of golden rum…
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post #29 of 99
Quote:
Originally Posted by AppleInsider View Post

"Apple hadn't even begun its due diligence process when news of the number came out," a source said.

 

Apparently neither did anyone in the press who rushed to publish this rumor.

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

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post #30 of 99

It's confirmed. Tim Cook really is the next Steve Ballmer. The man simply has no vision. Buying crappy headphones and sh*tty streaming app? Damn! I lost all respect for the man. Time to turn in my Apple fanboy card.

post #31 of 99
Quote:
Originally Posted by Apple ][ View Post
 

Yeah, that's what all the Apple haters are saying. Apple and Beats is a perfect match, because they both sell overpriced products to sheep.

 

Those people would be fools.  Neither Apple products nor Beats products are overpriced.  If a large number of consumers are happy to pay a given price and are happy with what they recieve then the products obviously aren't overpriced.


Edited by DroidFTW - 5/27/14 at 8:37pm
post #32 of 99
Terrible mistake, Apple. And I think this will begin to haunt you almost immediately.
post #33 of 99
I don't believe a word of this until confirmed by Apple.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #34 of 99
Quote:
Originally Posted by Rogifan View Post

We always knew it was about the headphones because the headphone business is the only thing that could maybe justify the price. Something still doesn't add up here though. Apple just doing due diligence now AND announcing the deal this week makes no sense.

First, how many $200 headphones will it take to return an investment of $2,000,000,000 greenbacks??

Secondly, Apple hasn't announced a thing, so this whole story is still smoke, mirrors and hot gas.
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post #35 of 99
Quote:
Originally Posted by SpamSandwich View Post

I don't believe a word of this until confirmed by Apple.

it's too bad more people don't take that advice.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #36 of 99
Quote:
Originally Posted by bighype View Post
 

It's confirmed. Tim Cook really is the next Steve Ballmer. The man simply has no vision. Buying crappy headphones and sh*tty streaming app? Damn! I lost all respect for the man. Time to turn in my Apple fanboy card.

An Unnamed Source quoted by the New York Post is your confirmation?  I've lost all respect in you...

 

oh wait.  I had none.   never mind

post #37 of 99
Quote:
Originally Posted by Suddenly Newton View Post

Apparently neither did anyone in the press who rushed to publish this rumor.

The press knows which company is the most valuable brand when it comes to click-bait.
The press has milked the udder shit out of this rumor to the point it's got sore teats.
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post #38 of 99
Quote:
Originally Posted by Macky the Macky View Post

Quote:
Originally Posted by Suddenly Newton View Post

Apparently neither did anyone in the press who rushed to publish this rumor.

The press knows which company is the most valuable brand when it comes to click-bait.
The press has milked the udder shit out of this rumor to the point it's got sore teats.

Sounds as though the rumours have become positively Bovine. Deary, Dre.ary me!
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post #39 of 99
Quote:
Originally Posted by Macky the Macky View Post


First, how many $200 headphones will it take to return an investment of $2,000,000,000 greenbacks??

Secondly, Apple hasn't announced a thing, so this whole story is still smoke, mirrors and hot gas.

while I don't like the rumor... the gist of it is, Beats was Apple's entree' into the world of persons of color buying world

That and entree' into all the music labels who loved Jimmy and Dre.  You can't sell (streaming) music if you don't got the music.

So, the real question would be how many iPhones and sonds would need to be sold to the African American Market to recoup _3_000000000$

and that answer would be about 10Million of each.  Or doubling a couple of low season months (July/August).

 

Just sayin' while we think the number is huge.  At Apple's Scale it's not.

 

But Not Sayin' because it's not's Apple's game to buy 'brand' or rainmakers (with the labels) at a premium.   

Apple may sell that many in 5.5" screens to the 150 Million people in the US who have bad eyesight, or are compensating for a small package.

 

I can wait a week or two.  All questions will be answered, and replaced with new questions.

post #40 of 99
Quote:
Originally Posted by DroidFTW View Post

Those people would be fools.  Neither Apple products nor Beats products are overpriced.  If a large number of consumers are happy to pay a given price and are happy with what they recieve then the products obviously aren't overpriced.

Just wanted to point this out. Whoever thinks buying beats is a good deal, you are agreeing with DroidFTW. So umm, you might want to rethink what stance you want to take on this.

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