Is Universal Music good for Apple??
I think this could be a coup for Apple. Just imagine - you've got the software (iTunes), you got the music (Universal) and you got the hardware (iPod) !
Methinks if apple go for this, they could be the one/first Music Industry Giant that finally makes money from selling music down that fat pipe to your home! and onto your "digital lifestyle" devices like iPod... that's if people want to pay of course... hmmmm... these could be interesting times.. Of course Apple needs to justify $6Bn for this punt on the future...
http://www.silicon.com/news/500008-5...l?nl=d20030415
http://www.silicon.com/analysis/5000...l?nl=e20030416
Methinks if apple go for this, they could be the one/first Music Industry Giant that finally makes money from selling music down that fat pipe to your home! and onto your "digital lifestyle" devices like iPod... that's if people want to pay of course... hmmmm... these could be interesting times.. Of course Apple needs to justify $6Bn for this punt on the future...
http://www.silicon.com/news/500008-5...l?nl=d20030415
http://www.silicon.com/analysis/5000...l?nl=e20030416
Comments
Consumers simply want to be able to download their Music and utilize that music on their audio playback devices without jumping through hoops. If Apple can keep this capability without opening themselves to rampant piracy then purchasing UMG would be huge.
Domain Name: APPLEUNIVERSAL.COM
Registrar: BULKREGISTER.COM, INC.
Whois Server: whois.bulkregister.com
Referral URL: http://www.bulkregister.com
Name Server: NSERVER2.APPLE.COM
Name Server: NSERVER.APPLE.COM
Status: ACTIVE
Updated Date: 11-apr-2003
Creation Date: 11-apr-2003
Expiration Date: 11-apr-2004
Peace,
Marc
http://www.theregister.co.uk/content/39/30289.html
The obvious point of all this is of course to cross germinate their software and in this case I think we could call it middleware into an entity that it less duplicitous than Sony but with that kind of scope in mind. Apple has to have a real master plan, and this rumor makes me think they just might have a big picture in mind, bigger than what we thought was media creation tools after FCP came out. We're talking professional and consumer service and solutions from top to bottom, even eliminating the middleman in this case.
Press Statement from Apple
CUPERTINO, Calif., Apr 16, 2003 /PRNewswire-FirstCall via COMTEX/ -- "Apple (AAPL) has never made any offer to invest in or acquire a major music company. The press statements this morning attributed to Vivendi board member Claude Bebear are untrue, as Mr. Bebear has confirmed in a later report," said Steve Jobs, Apple's CEO. "Beyond these comments, we will abide by Apple's policy of not commenting on rumors."
Originally posted by MacsRGood4U
With Apple share tumbling below $13.00 the company has issued the following:
Press Statement from Apple
CUPERTINO, Calif., Apr 16, 2003 /PRNewswire-FirstCall via COMTEX/ -- "Apple (AAPL) has never made any offer to invest in or acquire a major music company. The press statements this morning attributed to Vivendi board member Claude Bebear are untrue, as Mr. Bebear has confirmed in a later report," said Steve Jobs, Apple's CEO. "Beyond these comments, we will abide by Apple's policy of not commenting on rumors."
It sounds almost like something being written by Baghdad Bob... Perhaps the Military should start their search for the Guy nearer to Cupertino?
http://maccentral.macworld.com/news/.../16/universal/
Jobs says Apple has not made an offer.
Today more fuel was added to the fire when financial news service Bloomberg posted comments attributed to Vivendi director Claude Bebear, who reportedly said that Apple "will probably make an offer" for Universal Music Group. Bebear later denied making such a comment when asked by the Reuters news service.
"Apple has never made any offer to invest in or acquire a major music company," said Jobs in a short statement. "The press statements this morning attributed to Vivendi board member Claude Bebear are untrue, as Mr. Bebear has confirmed in a later report. Beyond these comments, we will abide by Apple's policy of not commenting on rumors."
"Beyond these comments, we will abide by Apple's policy of not commenting on rumors."
Barry Diller has joined the long line of litigants suing Vivendi Universal, charging that the Paris-based conglomerate had reneged on its agreement to reimburse its USA Interactive company for taxes on its preferred shares in Vivendi Universal Entertainment. The wording of the lawsuit appeared to indicate that Diller has had a complete falling-out with the current Vivendi regime. It said in part, "Vivendi's refusal to honor the clear commitment it made under [former Chairman Jean-Marie Messier] is a classic case of buyer's remorse -- an unjustified refusal to live up to obligations clearly and knowingly made." Today's (Wednesday) Los Angeles Times quoted Sanford C. Bernstein & Co. analyst Michael Nathanson as saying that Diller's suit raises a new obstacle in Vivendi's effort to sell the entertainment units "because you want clarity if you're the buyer."
Originally posted by MacsRGood4U
With Apple share tumbling below $13.00 the company has issued the following:
Press Statement from Apple
CUPERTINO, Calif., Apr 16, 2003 /PRNewswire-FirstCall via COMTEX/ -- "Apple (AAPL) has never made any offer to invest in or acquire a major music company. The press statements this morning attributed to Vivendi board member Claude Bebear are untrue, as Mr. Bebear has confirmed in a later report," said Steve Jobs, Apple's CEO. "Beyond these comments, we will abide by Apple's policy of not commenting on rumors."
Looks like it worked
Some great comments in this thread..
Interesting times.... first they buy the tools to make music - eMagic - and now they are looking at also buying into the distribution of the music made with these tools..
Go Stevie Go!
If Apple could find a way to buy Universal Music without loosing its cash, it would probably be very good for Apple, consumers, and the music industry.
Originally posted by snoopy
I believe this sideways move is why the stock dropped. Apple needs to be focused, and not a "jack of all trades." The stockholder's meeting next week should be interesting.
No the Stock dropped because it's a large expenditure. Any company in Apples position would have yielded the same effect. People are reading too much into this from Wallstreet.
Sideways. I don't think that applies here as well. iPods are not computers but they have had phenomenal success. Any proposition that offers the potential of huge profits will come with it's associated risks.
I find this much less dangerous for Apple that the "Headless Mac" with expandability and low cost. Remember Apple had roughly 63 Million in profits 2002...Universal Music Group had 500Million. Do the math.
Originally posted by hmurchison
Sideways. I don't think that applies here as well. iPods are not computers but they have had phenomenal success. Any proposition that offers the potential of huge profits will come with it's associated risks.
mp3 players have always been made by computer or tech companies. the connection from ipod to computer is a lot easier for me to understand than: computer to annoying cd "clubs". i'm not saying that apple won't take advantage of the opportunity (if they buy) and work on some music services and all, but at the same time they would (partially?) own a music label and that part doesn't seem to fit with the company.