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Apple's paid less than $500M for Beats Music, $2.5B for Beats Electronics - Page 2

post #41 of 56
Quote:
Originally Posted by Beluga View Post

Two times sales for the whole thing is not a bad deal from another perspective.

 

You are right two times sales is a great deal for Beats, look at Pandora's and Netflix (profit/revenue), note numbers for Spotify can't be much better these companies are always brought up as companies that Apple should buy, for a what if, look at the numbers dismal is the word, forget about Jimmy or Dr. Dre business wise Apple made good deal looking at the numbers of similar companies.

 

Note: Pandora is a company with lots of revenue, but no Profit, similar to Amazon.

 

http://www.wolframalpha.com/input/?i=Pandora+profit+2013

http://www.wolframalpha.com/input/?i=Pandora+profit+2014

http://www.wolframalpha.com/input/?i=Pandora+revenue+2013

http://www.wolframalpha.com/input/?i=Pandora+revenue+2014

 

http://www.wolframalpha.com/input/?i=Netflix+profit+2013

http://www.wolframalpha.com/input/?i=Netflix+profit+2014

http://www.wolframalpha.com/input/?i=Netflix+revenue+2013

http://www.wolframalpha.com/input/?i=Netflix+revenue+2014


Edited by Danox - 5/29/14 at 11:44pm
post #42 of 56
Quote:
Originally Posted by Danox View Post
 

 

Two times sales is a great deal for Beats, look at Pandora's and Netflix (profit/revenue), note numbers for Spotify can't be much better these companies are always brought up as companies that Apple should buy, for a what if, look at the numbers dismal is the word, forget about Jimmy or Dr. Dre business wise Apple made good deal looking at the numbers of similar companies.

 

Note: Pandora is a company with lots of revenue, but no Profit, similar to Amazon.

 

http://www.wolframalpha.com/input/?i=Pandora+profit+2013

http://www.wolframalpha.com/input/?i=Pandora+profit+2014

http://www.wolframalpha.com/input/?i=Pandora+revenue+2013

http://www.wolframalpha.com/input/?i=Pandora+revenue+2014

 

http://www.wolframalpha.com/input/?i=Netflix+profit+2013

http://www.wolframalpha.com/input/?i=Netflix+profit+2014

http://www.wolframalpha.com/input/?i=Netflix+revenue+2013

http://www.wolframalpha.com/input/?i=Netflix+revenue+2014

I fail to see your point. 2 times sales is not a bad deal thats what I said.. for perspective apple sells at 3 times sales, google at 6 

 

Plus I think apple very easily can double beats sales in 2014 just by making the headphones available in its stores worldwide... if I am correct that would be 1 times sales and thus twice as good a deal

post #43 of 56
Quote:
Originally Posted by malax View Post
 

His facts are straighter than yours.

 

http://espn.go.com/los-angeles/nba/story/_/id/11003237/former-microsoft-executive-steve-ballmer-submits-winning-bid-buy-clippers-according-sources

 

Check out this bit about the losing bidder:  "Geffen's group also included Oracle CEO Larry Ellison and Oprah Winfrey, as well as Guggenheim executives Todd Boehly and Mark Walter, Steve Jobs' widow Laurene Jobs, Steve Wynn's ex-wife Elaine Wynn, and Beats by Dre co-founder Jimmy Iovine."

 

I knew there was a reason I introduced this topic to this thread.  It wasn't off-topic after all.  Too bad the Beats deal took so long to come together or Iovine could have won this one.

:embarrass

 

 


Edited by mwhiteco - 5/30/14 at 7:04pm
post #44 of 56
Quote:
Originally Posted by bennettvista View Post

Beats Electronics will be a prolific electronics company (hence the "pipeline" comment from Eddy Cue) and a design playground for Jony and his team to create Apple accessories without messing with the "Apple" brand and reputation.  Expect a Beats phone, additional stereo speaker systems, headphones, and many other things… 

Beats will be Apple's music brand going forward. Don't expect a Beats phone. Expect Apple designed Beats headphones. Expect a more focused Beats lineup. Expect Apple engineered Beats headphones. If Beats in-ear are continued expect just one model of them going forward. And I wouldn't be surprised to see them drop the speakers entirely. And obviously they are keeping the Beats music service. I must be the only guy who likes this deal. Beats is a name and a logo when it comes to hardware, Apple will now be making the hardware and can do many cool and quality things with it.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #45 of 56

World Cup Headset anyone...

 

post #46 of 56

 
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post #47 of 56
Quote:
Originally Posted by Dick Applebaum View Post

After continuous and rigorous observation -- it occurs to me that cats can't do pinch to zoom.

They also seem to have difficulties using Siri.

Proud AAPL stock owner.

 

GOA

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GOA

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post #48 of 56
Quote:
Originally Posted by Beluga View Post

Two times sales for the whole thing is not a bad deal from another perspective.

That's exactly right.   2x revenue (or 5-6x earnings) is par for reasonably priced acquisitions.    I didn't realize their revenue was so high.   $1.5b in headphone sales?   That's kind of amazing.    

 

As for the split of what Apple paid, I think that's totally irrelevant.   Why does it matter how they value each piece of the acquisition?

post #49 of 56
Quote:
Originally Posted by zoetmb View Post

As for the split of what Apple paid, I think that's totally irrelevant.   Why does it matter how they value each piece of the acquisition?

It gives us insight into each of these two companies. About $500 million for Beaats Music that only launched earlier this year is very impressive. I'd say that's more impressive than Beats Electronics going for 5x that value after 8(?) years. That is an impressive success story in a short amount of time. I wish I had the wherewithal to create a multimillion dollar company and sell it to Apple just a few years later.

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post #50 of 56
Quote:
Originally Posted by zoetmb View Post
 

That's exactly right.   2x revenue (or 5-6x earnings) is par for reasonably priced acquisitions.    I didn't realize their revenue was so high.   $1.5b in headphone sales?   That's kind of amazing.    

 

As for the split of what Apple paid, I think that's totally irrelevant.   Why does it matter how they value each piece of the acquisition?

the split might be irrelevant to you but its not irrelevant to apple or the investor community for sure. For an acquiring company (apple in this case) to value a target company they basically split it in its distinct divisions and value each one separately and then add it all up. 

post #51 of 56
Quote:
Originally Posted by Slurpy View Post

I'm sure Apple did a shitload more research into Beats, and the reasons and benefits of acquisition, compared to how you "feel" about it. The Pros, Cons, everything. Maybe people should give Apple the benefit of the doubt (hasn't it earned at least that?) before jumping to judgement. 

Companies have made bad acquisitions, even large ones. Not every purchase apple had ever made had been perfect. I think that saying - because apple bought them it must be a good purchase wouldn't be right. But I do think this deal is better than what I initially thought. When u think about it as a $500 mil purchase for their streaming service, and $2.5 bil for a hardware company that could balance it's own books and make back the cost in a few years. The biggest issue I still have is, apple is going to be associated with beats. Right now, the apple brand is the best brand in the world. Beats has a rep for being overpriced crap. Apple is probably going to get some of that rubbing off on them, unless they sell of the hardware portion in a few years, or lower their prices.
post #52 of 56
Really, it doesn't matter how the deal was structured -- perhaps Apple had to buy both entities to get the deal to happen. If all they cared about was Beats Music, if they really wanted to get their hands on it, they would have to spend $3B either way.

Trying to figure out how much money they spent on which part is as pointless as trying to figure out how much money you spent on each of your kids during the past year...
post #53 of 56
Quote:
Originally Posted by SmileyDude View Post

Really, it doesn't matter how the deal was structured -- perhaps Apple had to buy both entities to get the deal to happen. If all they cared about was Beats Music, if they really wanted to get their hands on it, they would have to spend $3B either way.

Trying to figure out how much money they spent on which part is as pointless as trying to figure out how much money you spent on each of your kids during the past year...

 

Quote:
Originally Posted by zoetmb View Post
  

 

As for the split of what Apple paid, I think that's totally irrelevant.   Why does it matter how they value each piece of the acquisition?

 

 

Because down the road you want to see the return on investment. $2.5B for a shitty electronics - headphones? Will Apple make a profit off that by including Beats with iPhones and iPods now? Will these new earphones increase sales? It all remains to be seen.

It will be interesting to see the Apple store employees who have been steering customers away with honesty from Beats now having to tow the line and push this crap.

 
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post #54 of 56

Why can't they make iTunes a paid subscription service by just allowing us to use iTunes and if you pay for it, instead of it playing a sample, it plays the entire song and the catalog just shows us what's available along with our own library?  If you don't pay for the service, then it just plays the sample of the song like it does now.    DUH.   Jeez.  is it THAT difficult to do?

post #55 of 56
Quote:
Originally Posted by AppleSauce007 View Post
 

World Cup Headset anyone...

 

It's only for those that like Brazil that watch soccer that are willing to wear their headphones with their logo on it.  I think that's a VERY small market potential.  What are they going to do make one for each NBA, NFL, MLB, etc. sport?  I know one thing about Apple, they don't like too many sku's and Beats has over 100 of them.

post #56 of 56
Quote:
Originally Posted by SolipsismX View Post

Quote:
Originally Posted by zoetmb View Post

As for the split of what Apple paid, I think that's totally irrelevant.   Why does it matter how they value each piece of the acquisition?

It gives us insight into each of these two companies. About $500 million for Beaats Music that only launched earlier this year is very impressive. I'd say that's more impressive than Beats Electronics going for 5x that value after 8(?) years. That is an impressive success story in a short amount of time. I wish I had the wherewithal to create a multimillion dollar company and sell it to Apple just a few years later.

Be happy with your lot. 😉
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