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

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  • Reply 81 of 93
    danoxdanox Posts: 3,897member
    Quote:
    Originally Posted by addicted44 View Post

     



    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)

    neoncat
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  • Reply 82 of 93
    droidftwdroidftw Posts: 1,009member
    Quote:

    Originally Posted by sog35 View Post

     

    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.  ;)

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  • Reply 83 of 93
    island hermitisland hermit Posts: 6,217member
    Quote:

    Originally Posted by DroidFTW View Post

     

     

    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.

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  • Reply 84 of 93
    pazuzupazuzu Posts: 1,728member
    This is Time Warner buying AOL all over again. Good luck Apple with your trendy overpriced purchase. You've been had.
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  • Reply 85 of 93
    tallest skiltallest skil Posts: 43,388member
    Originally Posted by sog35 View Post

    $165B deal vs a $3B deal. The amount of idiocy here is amazing.


     

    What about considering scale?

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  • Reply 86 of 93
    dnd0psdnd0ps Posts: 253member
    Click bait. If this deal is true id expect a WWDC announcement
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  • Reply 87 of 93
    andysolandysol Posts: 2,506member
    Quote:



    Originally Posted by sog35 View Post

     

     

    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 View Post

     

    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...

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  • Reply 88 of 93
    asdasdasdasd Posts: 5,686member
    sog35 wrote: »
    Deal is official. News just out.

    Again proving you know NOTHING about Apple's business.
    Now just sit down and let the professionals do their thing.

    The "professional" CEO in this case is clearly floundering. No idea what he is doing.
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  • Reply 89 of 93
    andysolandysol Posts: 2,506member
    Quote:
    Originally Posted by sog35 View Post

     

     

    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. 

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  • Reply 90 of 93
    solipsismxsolipsismx Posts: 19,566member
    sog35 wrote: »
    Beats sells plastic headphones for $500.  Its a pretty safe bet their margins are quite healthy.

    The selling price in no way indicates what the margin is.
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  • Reply 91 of 93
    SpamSandwichspamsandwich Posts: 33,407member
    Quote:

    Originally Posted by SolipsismX View Post





    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.

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  • Reply 92 of 93
    andysolandysol Posts: 2,506member
    solipsismx wrote: »
    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 :p
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