Dr. Dre, Tyrese share Heineken-fueled celebration of Apple's alleged Beats acquisition
In a video initially posted to Facebook and subsequently pulled, West Coast rappers Dr. Dre -- the cofounder of Beats Electronics -- and Tyrese appear to be celebrating the rumored sale of Dre's headphone brand to Apple, seeming to confirm that the deal is legitimate.
Dr. Dre and LeBron James wearing Beats.
Proclaiming Dre "the first billionaire in hip hop," the video was originally released on Tyrese's Facebook page, captioned thusly:
Note: The video embedded below includes profanity.
According to reports, Apple would control both the Beats headphone business and its new streaming music service. Many industry observers have expressed skepticism, however, that either of those rumors are legitimate.
Beats is not thought to have much in the way of proprietary technology, generally the driver of acquisitions for Apple. The company's streaming music rights are also unlikely to be transferable, meaning they would need to be renegotiated regardless of the deal's structure.
Dr. Dre and LeBron James wearing Beats.
Proclaiming Dre "the first billionaire in hip hop," the video was originally released on Tyrese's Facebook page, captioned thusly:
Word that Apple was nearing a $3.2 billion acquisition of Beats broke late Thursday afternoon. It was quickly followed by a rumor that Beats CEO and Universal Music Group chairman Jimmy Iovine was in talks to join Apple as a "special advisor" to CEO Tim Cook."How did I end up in the studio with Dr Dre ON THE night his deal went public that he did with Apple 3.2 BILLION!!!!! The BEATS HEADPHONES JUST CHANGED HIP HOP!!!!!!"
Note: The video embedded below includes profanity.
According to reports, Apple would control both the Beats headphone business and its new streaming music service. Many industry observers have expressed skepticism, however, that either of those rumors are legitimate.
Beats is not thought to have much in the way of proprietary technology, generally the driver of acquisitions for Apple. The company's streaming music rights are also unlikely to be transferable, meaning they would need to be renegotiated regardless of the deal's structure.
Comments
What a terrible deal by Apple
Where did you read they made the deal? Link?
Some people just don't understand the kind of media connections iTunes is getting in this deal...
Jimmy Iovine is a senior executive at Vivendi Universal Music Group.
Beats investor Carlyle Group / Len Blatvatnik recently bought Warner Music Group.
Vivendi owns about 14% of Beats.
iTunes is about to become the biggest money maker for Apple.
iTunes will own the global music industry if they didn't already.
Wake up people. This is huge for Apple.
As soon as Apple closes this deal and really takes it Global, it will be worth 10 times more.
It's hard for me to think of a worst fit in terms of company culture, product, and business strategy. It fails in all three
Beats Streaming is the best streaming app & service around.
Apple gets a successful brand name, significant cash flow, and the ability to go toe-to-toe on streaming with a superior service.
One last thing: the rumored selling price is the same amount Google spent for fricking NEST! Which do you think is a better deal and a better fit?
What's the complaining about again?
Otherwise, the market is going to react quite badly to this. Not because of the amount involved (which is a rounding error), but because of what it will infer -- rightly or wrongly -- about the company's strategy (or lack of it).
http://forums.appleinsider.com/t/179341/will-apple-buy-beat-electronics
Beats doesn't own patents (as far as I know). They have a brand. Their streaming business is okay, but Apple has a gargantuan business already established in that area.
Perhaps Apple wants the brand? Couldn't be profits since they're selling their gear in their store already, and the margins may not be high enough.
Perhaps it's to steal the tech away from PC and smartphone competition tie-ins? I think Apple would make more by improving the tech and leasing it. Locking it up for themselves does make a difference in profits. They're just out $3.2B
Apple's culture is heavily tied with music. I can't see what's so special about the beats brand that would motivate an acquisition when there are other brands and technology out there. Why not aquire Pandora? Also, for a couple hundred million, Apple could start it's own record label and make more profit from that.
I guess time will tell where Apple will go with this.
Profanity for one.
Apple may pull the contract after watching this video
Sales and profit are different. Just ask samsung.
Why is it such a tragedy? I think Apple executive are in a better position to judge than random fans/ insignificant shareholders
I may be wrong, but I am sure that I read a review of the headphones and it said they pretty much suck. Just because they are the "in" thing doesn't mean Apple needs to buy it.
It's hard for me to think of a worst fit in terms of company culture, product, and business strategy. It fails in all three
I can't really comment on culture, as I've never worked at either Beats or Apple, but it doesn't seem such a bad fit to me.
In terms of product, both companies design, manufacture and distribute portable electronics. Apple has long specialised in music since the iPod, and its stores feature Beats products (headphones and speaker docks, including wireless speakers).
In terms of business strategy, both companies marry hardware and online music services. In Apple's case, iOS devices and iTunes, in Beats' case, headphones/speakers and online music streaming.
Whilst Beats products have often been derided by the 'audiophile' community, some of us actually seek out headphones with bass heavy response. I tend to listen to electronic music over classical, and prefer the low end response of the Beats headphones, something that I've struggled to get with other brands. And I've owned a pair of Beats Tour edition in-ear buds for over three years now, which despite being tossed in a bag every day (without the case) have held up just fine, which is more than can be said for the many Sennheiser's I've replaced over the years.
I guess we'll find out in early course if this deal is genuine, and how exactly Apple will benefit, but from a product and strategy standpoint the companies strike me as very similar.
I agree, 3.2B is a lot (and this video doesn't confirm that figure). But I'm not sure this is quite as silly as it seems. I agree the Dr. Dre phones aren't great (other Beats models are better though). But I'm sure Apple has some pretty interesting plans if they're investing these sums.
Personally, I don't think Cook should make this deal as I don't see the value for the company. AAPL can negotiate its own contracts for music streaming whenever they want they just want to bring in the music purchasing revenue as much as possible. Besides headphone tech I don't see what Beats provides. Unless they have something in the works that Cook is privvy of. Still doesn't warrant $3.2b to me.
Profanity for one.
Oh please... Grow up! Will you?
What is similar?... What could it be?