So do you think Apple will maintain the Beats brand? If not, then all the power of the brand is worthless. If they do, then that would be very out of the norm for Apple (the only similar thing I can think of is Filemaker, and that did not turn out too well for them) and considering Apple is already making billions a year, would b strange to see them acquire a company for its profits.
The whole acquisition makes very little sense to me. The only way it works, IMO, is if the music rights are transferable. If not, the acquisition actually destroys value, as far as I can tell, by causing the forfeiture of the music rights.
Apple is Doomed buying a company that actually makes a profit (300-400 million on 1.4 billion in revenue), the streaming software MOG/Beats music works better than the streaming radio software added on to iTunes in recent times. The design, marketing, and performance of Beats headphones is ahead of the competition in their market with over 50% marketshare, yes Apple is Doomed how dare they buy a profitable company. At 2x earnings.
Long AKG K240 DF (less bass) Sony MDR V-900 (more bass)
Who knows? With the possibility of Apple joining the home automation space they may getting into more home electronics like Speakers, TV's, lights, ect.
So the acquisition makes little sense to you? Do you know Apple's road map for the next 5 years? Next year? Next 6 months? Of course not. That being the case just sit the hell down and let the professionals take over.
It's always surprising to see how many people at AI know Apple better then Apple knows Apple.
It's always surprising to see how many people at AI know Apple better then Apple knows Apple.
... on both sides of the coin.
But, this is a speculation/rumor site. I see nothing wrong at all with people giving their opinions. Sometimes they're wrong but sometimes they end up being right.
Beats is a high margin business. The estimates for profit are $300M to $400M.
Estimated profits based on what? They're a private company who hasn't ever made their books public. It's all a big wild guess.
Its hilarious that a small scrub like you think you know more about acquisitions than the most valuable company in the entire world. Stop being a pig-headed fool and admit your business knowledge is far below Mr Cook.
Its hilarious that a small scrub like you think you know as much about acquisitions as the most valuable company in the entire world. Stop being a pig-headed fool and admit your business knowledge is far below Mr Cook.
Correct me if I'm wrong- did Apple buy Beats? Did we hear an announcement? Do we know what Beat's profit margins actually are? All I was saying is that no one determines the valuation of a company based on gross revenue. No one. Yet you said:
Quote:
Originally Posted by sog35
The price was only 230% of yearly sales. That's an outstanding price for a growing company.
Proving you have no clue on how to value a business.
Quote:
Sorry don't even compare your Lawn Mowing business to the top-end Beats company. Your business is ULTRA low margin. Beats is HIGH END. They dominate the high end headphone business and have extremely nice margins.
So I take that as a "no"- you've never bought a profitable business before. I'm in the wastewater/environmental testing industry- not a lawn mowing business- although landscaping has outrageous margins and is very lucrative- but I digress. You have no concept of what my margins are- ironically enough- you have no concept what beats margins are either. Hence- you have no idea what beats should be valued at. If they have phenomenal margins- great. But there is no synergies in that business to warrant a purchase. Nothing outside of a small music streamer, some studio deals (which don't transfer with a purchase- so pointless) and dre/iovine's "clout" in the industry (as if Apple didn't have enough!) So essentially they are buying a profitable hardware company.
This deal ain't gonna happen and it's more click-bait- I'm convinced. Unless there is something behind the scenes that none of us are privy to, I just don't see it...
Beats sells plastic headphones for $500. Its a pretty safe bet their margins are quite healthy.
Again it comes down to this:
Should I believe a random guy on the internet who knows NOTHING about Apples 5 year road map?
Or should I trust the most valuable company in the entire world?
Sorry I'm going to trust Apple that they know what they are doing.
LOL, at you comparing Beats to an industrial waste company. Made me laugh hard.
Again leave it to the professionals. Sit your azz down and let it play out.
Are you listening to yourself and me? I'm in agreement with you- neither of us knew enough about Beats to know if it's a good purchase or not because we aren't privy to all the information and financials. I trust Apple to determine if it's a good deal or not- aka "leave it to the professionals".
Now that that's settled- lets go back to my original (and only) point:
I said you are wrong in determining the value of a company based on gross revenue- that's just idiotic. Something you still haven't tried to rationalize. You just throw up these fake arguments. But whatever- it's done.
The selling price in no way indicates what the margin is.
Exactly right. In the indentical way that gross revenue doesn't determine the value of a company. Not sure why he wanted to argue about that and turn it into a "Andysol thinks he knows more than Tim Cook and Apple"- which is incorrect and I never said.
Not sure why I allow myself to be annoyed by faceless beings on the other end of a keyboard. I'll need to work on that
Comments
So do you think Apple will maintain the Beats brand? If not, then all the power of the brand is worthless. If they do, then that would be very out of the norm for Apple (the only similar thing I can think of is Filemaker, and that did not turn out too well for them) and considering Apple is already making billions a year, would b strange to see them acquire a company for its profits.
The whole acquisition makes very little sense to me. The only way it works, IMO, is if the music rights are transferable. If not, the acquisition actually destroys value, as far as I can tell, by causing the forfeiture of the music rights.
Apple is Doomed buying a company that actually makes a profit (300-400 million on 1.4 billion in revenue), the streaming software MOG/Beats music works better than the streaming radio software added on to iTunes in recent times. The design, marketing, and performance of Beats headphones is ahead of the competition in their market with over 50% marketshare, yes Apple is Doomed how dare they buy a profitable company. At 2x earnings.
Long AKG K240 DF (less bass) Sony MDR V-900 (more bass)
Who knows? With the possibility of Apple joining the home automation space they may getting into more home electronics like Speakers, TV's, lights, ect.
So the acquisition makes little sense to you? Do you know Apple's road map for the next 5 years? Next year? Next 6 months? Of course not. That being the case just sit the hell down and let the professionals take over.
It's always surprising to see how many people at AI know Apple better then Apple knows Apple.
It's always surprising to see how many people at AI know Apple better then Apple knows Apple.
... on both sides of the coin.
But, this is a speculation/rumor site. I see nothing wrong at all with people giving their opinions. Sometimes they're wrong but sometimes they end up being right.
$165B deal vs a $3B deal. The amount of idiocy here is amazing.
What about considering scale?
Beats is a high margin business. The estimates for profit are $300M to $400M.
Estimated profits based on what? They're a private company who hasn't ever made their books public. It's all a big wild guess.
Its hilarious that a small scrub like you think you know as much about acquisitions as the most valuable company in the entire world. Stop being a pig-headed fool and admit your business knowledge is far below Mr Cook.
Correct me if I'm wrong- did Apple buy Beats? Did we hear an announcement? Do we know what Beat's profit margins actually are? All I was saying is that no one determines the valuation of a company based on gross revenue. No one. Yet you said:
The price was only 230% of yearly sales. That's an outstanding price for a growing company.
Proving you have no clue on how to value a business.
Sorry don't even compare your Lawn Mowing business to the top-end Beats company. Your business is ULTRA low margin. Beats is HIGH END. They dominate the high end headphone business and have extremely nice margins.
So I take that as a "no"- you've never bought a profitable business before. I'm in the wastewater/environmental testing industry- not a lawn mowing business- although landscaping has outrageous margins and is very lucrative- but I digress. You have no concept of what my margins are- ironically enough- you have no concept what beats margins are either. Hence- you have no idea what beats should be valued at. If they have phenomenal margins- great. But there is no synergies in that business to warrant a purchase. Nothing outside of a small music streamer, some studio deals (which don't transfer with a purchase- so pointless) and dre/iovine's "clout" in the industry (as if Apple didn't have enough!) So essentially they are buying a profitable hardware company.
This deal ain't gonna happen and it's more click-bait- I'm convinced. Unless there is something behind the scenes that none of us are privy to, I just don't see it...
The "professional" CEO in this case is clearly floundering. No idea what he is doing.
Beats sells plastic headphones for $500. Its a pretty safe bet their margins are quite healthy.
Again it comes down to this:
Should I believe a random guy on the internet who knows NOTHING about Apples 5 year road map?
Or should I trust the most valuable company in the entire world?
Sorry I'm going to trust Apple that they know what they are doing.
LOL, at you comparing Beats to an industrial waste company. Made me laugh hard.
Again leave it to the professionals. Sit your azz down and let it play out.
Are you listening to yourself and me? I'm in agreement with you- neither of us knew enough about Beats to know if it's a good purchase or not because we aren't privy to all the information and financials. I trust Apple to determine if it's a good deal or not- aka "leave it to the professionals".
Now that that's settled- lets go back to my original (and only) point:
I said you are wrong in determining the value of a company based on gross revenue- that's just idiotic. Something you still haven't tried to rationalize. You just throw up these fake arguments. But whatever- it's done.
The selling price in no way indicates what the margin is.
The selling price in no way indicates what the margin is.
This is true. Apple may be able to re-engineer for better quality and negotiate for better pricing with manufacturers in China.
Exactly right. In the indentical way that gross revenue doesn't determine the value of a company. Not sure why he wanted to argue about that and turn it into a "Andysol thinks he knows more than Tim Cook and Apple"- which is incorrect and I never said.
Not sure why I allow myself to be annoyed by faceless beings on the other end of a keyboard. I'll need to work on that