Apple reportedly nearing $3.2B acquisition of Beats Electronics

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  • Reply 101 of 257
    rogifanrogifan Posts: 10,669member
    Another thing... Beats Electronics only had $350 million in revenue in 2011. $3.2 billion would be massively overpaying.
    I believe their sales last year were $1.2B. What were Nest and WhatsApp sales last year?
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  • Reply 102 of 257
    MacPromacpro Posts: 19,865member
    I’d be fine with Apple buying it just to get it out of Facebook’s hands.

    But you know Zuckerberg won’t part with anything he gets his grubby little hands on.

    Right ... I forgot that ...
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  • Reply 103 of 257
    rogifanrogifan Posts: 10,669member
    Wired thinks it's Apple's best idea since the iPad. Basically argue that Apple needs to get the "cool" factor back and this is the way to do it. :no: :no: :no:

    http://www.wired.com/2014/05/apple-beats-best-idea-since-ipad/
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  • Reply 104 of 257
    apple ][apple ][ Posts: 9,233member
    Quote:
    Originally Posted by Rogifan View Post



    Wired thinks it's Apple's best idea since the iPad. Basically argue that Apple needs to get the "cool" factor back and this is the way to do it. image image image

    I think that this is the single worst rumor that I've ever read since joining this site.

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  • Reply 105 of 257
    jlanddjlandd Posts: 873member
    cali wrote: »
    OH GOD NO!!!!!!!

    They make crap headphones that fall apart with crazy markup prices.

    Are they still affiliated with Monster Cable?

    Look up that scumbag company.


    No, Monster hasn't been involved in ages. They were squeezed out in a very ironic move a long time ago.

    One of Iovine's many amazing talents is that he sold Interscope for huge sums and then bought it back for a fraction years later several times. He's kind of a genius at making something with a value of x be accepted as worth either 10 times x or 1/10 x.

    PS: Chalk up those "reported" meetings in LA with corporate music industry during the Grammys as having happened.
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  • Reply 106 of 257
    apple ][apple ][ Posts: 9,233member
    Quote:

    Originally Posted by Tallest Skil View Post

     

     

    I’d be fine with Apple buying it just to get it out of Facebook’s hands.

     


     

    At least that would be worth it, since that tech is definitely going to be useful in the future.

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  • Reply 107 of 257
    malaxmalax Posts: 1,598member

    After Apple locks up Beats they can snap up Monster Cable.  These premium brands will really help Apple's image.  \s

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  • Reply 108 of 257
    SpamSandwichspamsandwich Posts: 33,407member
    Quote:

    Originally Posted by Rogifan View Post





    I believe their sales last year were $1.2B. What were Nest and WhatsApp sales last year?

     

    As the Time article pointed out, Apple makes smaller company acquisitions. This would be "out of character" for Apple and it makes little sense.

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  • Reply 109 of 257
    SpamSandwichspamsandwich Posts: 33,407member
    Quote:

    Originally Posted by Rogifan View Post



    Wired thinks it's Apple's best idea since the iPad. Basically argue that Apple needs to get the "cool" factor back and this is the way to do it. image image image



    http://www.wired.com/2014/05/apple-beats-best-idea-since-ipad/

     

    They're not known for their business savvy.

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  • Reply 110 of 257
    mdriftmeyermdriftmeyer Posts: 7,503member

    Netflix: Not a chance. It's a money pit.

    Yahoo: Never want to be an ISP

    Beats: Doubt this one as well. Apple won't pay much over fair market valuation, never mind 3x.

     

    Apple is building tools for Producers to create 3rd party products, in various markets.

     

    Headphone market is not a big one.

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  • Reply 111 of 257
    applesauce007applesauce007 Posts: 1,709member

    The main reason Apple buys companies is to bring them in-house because the represent a critical component of an Apple product.

     

    With Beats, Apple gets patented speaker technology and streaming audio.  Beats may have also had other breakthroughs that no one knows about for all that money.  I know that Apple spends every dollar as if it was their last.

     

    This could enhance iTunes and iPhones, AppleTV, iPods, Macs, iPads

     

    Wow... almost every single Apple product could be enhanced by Beats; not to mention iTV.

     

    All I can say is that I trust Apple to spend their money wisely.

     

    Time will tell.

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  • Reply 112 of 257
    menithingsmenithings Posts: 68member
    Lol at the above comments.

    People, Apple wants Beats for its MUSIC SUBSCRIPTION SERVICE.

    It's an absolutely crucial purchase, and one that'll fast-track a much needed iTunes streaming music service.

    Apple needs to get into the music streaming game quickly before Spotify takes over the market.

    Beats' streaming system and curating service is something iTunes lacks, so I hope the seal happens.
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  • Reply 113 of 257
    bobschlobbobschlob Posts: 1,074member

    Streaming service technology.

    Seems like this is probably about "Daisy / MOG". Not about a pair of headphones.

    http://www.thembj.org/2013/03/the-promise-of-daisy/

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  • Reply 114 of 257
    welshdogwelshdog Posts: 1,919member

    I am looking forward to referring to him as "Billionaire Dr. Dre."

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  • Reply 115 of 257
    rogifanrogifan Posts: 10,669member
    menithings wrote: »
    Lol at the above comments.

    People, Apple wants Beats for its MUSIC SUBSCRIPTION SERVICE.

    It's an absolutely crucial purchase, and one that'll fast-track a much needed iTunes streaming music service.

    Apple needs to get into the music streaming game quickly before Spotify takes over the market.

    Beats' streaming system and curating service is something iTunes lacks, so I hope the seal happens.
    And that's worth $3B?
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  • Reply 116 of 257
    woochiferwoochifer Posts: 385member

    As others have indicated, the only conceivable reason for this acquisition that I can see would entail content and streaming rights, and perhaps some technology tied to creating curated playlists. By all accounts, the Beats radio service is a serious contender, and the curation seems better dialed into how listeners mix and match artists and genres. Some of the mergers and partnerships out there that on the surface do not make much sense, like the Dish/Blockbuster merger, will also include extensive content rights that the media misses.

     

    Some of the oft-noted criticisms of iTunes Radio are that it might not create relevant playlists, it repeats a lot of songs, and might mismatch genres. With the Beats streaming service, they seem to have gotten a lot of things right from the outset, and Apple might be trying to tap into that. But, how would this tie into iTunes and the iOS ecosystem, given that many of the subscribers use Beats streaming on other platforms? Also, $3 billion is quite steep for what Beats offers.

     

    I just can't see Apple though acquiring Beats for their headphone and Bluetooth speaker lines. While they are well-marketed and sell well with high margins, they also do not have a good reputation for performance and value. Also, Beats has diluted the brand by licensing it to HTC smartphones and HP PCs. Stuff like this would seem to cheapen Apple's brand image. Also, I thought that Beats Audio was a joint venture with Monster Cable (another company known for peddling high priced products with marginal quality) -- where are they in the discussion?

     

    For my listenings, the Beats headphones are a mess. I much prefer the Grados, which sound great and are handmade in Brooklyn.

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  • Reply 117 of 257
    menithingsmenithings Posts: 68member

    Of course . iTunes in an $8 BILLION/year business.  Streaming could drive that figure higher.

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  • Reply 118 of 257
    menithingsmenithings Posts: 68member
    Quote:

    Originally Posted by Rogifan View Post





    And that's worth $3B?

    Of course . iTunes in an $8 BILLION/year business.  Streaming could drive that figure higher.

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  • Reply 119 of 257
    solipsismxsolipsismx Posts: 19,566member
    menithings wrote: »
    Of course . iTunes in an $8 BILLION/year business.  Streaming could drive that figure higher.

    What does Beats streaming have that Apple already doesn't have for streaming that is worth anything, much less $3.2 billion?
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  • Reply 120 of 257
    john.bjohn.b Posts: 2,742member

    Wut?  Makes no sense to me...

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