Two times sales for the whole thing is not a bad deal from another perspective.
You are right two times sales is a great deal for Beats, look at Pandora's and Netflix (profit/revenue), note numbers for Spotify can't be much better these companies are always brought up as companies that Apple should buy, for a what if, look at the numbers dismal is the word, forget about Jimmy or Dr. Dre business wise Apple made good deal looking at the numbers of similar companies.
Note: Pandora is a company with lots of revenue, but no Profit, similar to Amazon.
Two times sales is a great deal for Beats, look at Pandora's and Netflix (profit/revenue), note numbers for Spotify can't be much better these companies are always brought up as companies that Apple should buy, for a what if, look at the numbers dismal is the word, forget about Jimmy or Dr. Dre business wise Apple made good deal looking at the numbers of similar companies.
Note: Pandora is a company with lots of revenue, but no Profit, similar to Amazon.
I fail to see your point. 2 times sales is not a bad deal thats what I said.. for perspective apple sells at 3 times sales, google at 6
Plus I think apple very easily can double beats sales in 2014 just by making the headphones available in its stores worldwide... if I am correct that would be 1 times sales and thus twice as good a deal
Check out this bit about the losing bidder: "Geffen's group also included Oracle CEO Larry Ellison and Oprah Winfrey, as well as Guggenheim executives Todd Boehly and Mark Walter, Steve Jobs' widow Laurene Jobs, Steve Wynn's ex-wife Elaine Wynn, and Beats by Dre co-founder Jimmy Iovine."
I knew there was a reason I introduced this topic to this thread. It wasn't off-topic after all. Too bad the Beats deal took so long to come together or Iovine could have won this one.
Beats Electronics will be a prolific electronics company (hence the "pipeline" comment from Eddy Cue) and a design playground for Jony and his team to create Apple accessories without messing with the "Apple" brand and reputation. Expect a Beats phone, additional stereo speaker systems, headphones, and many other things…
Beats will be Apple's music brand going forward. Don't expect a Beats phone. Expect Apple designed Beats headphones. Expect a more focused Beats lineup. Expect Apple engineered Beats headphones. If Beats in-ear are continued expect just one model of them going forward. And I wouldn't be surprised to see them drop the speakers entirely. And obviously they are keeping the Beats music service. I must be the only guy who likes this deal. Beats is a name and a logo when it comes to hardware, Apple will now be making the hardware and can do many cool and quality things with it.
Talk about lowering the level. You might do us all a big favor and stop being an A**hole. There's really no need for the tone that you adopt in almost all of your posts. Stop it please and try to show a bit of class.
Asshole? His posts are on the same level of those of a spam-bot, and yes, I admit that after seeing thousands of these and his attempts to shit up every single thread, I get pretty fucking annoyed at them. If you actually have read my past posts, you would see that I put alot of effort into articulating my point of view and taking a reasoned approach. But and what point does one say enough is enough when it comes to drive-by troll posts who have a one-note posting record? His last few dozen posts have been a variation of LOL TIM COOK IS AN IDIOT and LOL FIRE COOK. The ones before that were a variation of something else just as asinine, all with the same theme of mocking Apple and its products, containing as few words as possible. So please, don't talk to me about class.
Two times sales for the whole thing is not a bad deal from another perspective.
That's exactly right. 2x revenue (or 5-6x earnings) is par for reasonably priced acquisitions. I didn't realize their revenue was so high. $1.5b in headphone sales? That's kind of amazing.
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
It gives us insight into each of these two companies. About $500 million for Beaats Music that only launched earlier this year is very impressive. I'd say that's more impressive than Beats Electronics going for 5x that value after 8(?) years. That is an impressive success story in a short amount of time. I wish I had the wherewithal to create a multimillion dollar company and sell it to Apple just a few years later.
That's exactly right. 2x revenue (or 5-6x earnings) is par for reasonably priced acquisitions. I didn't realize their revenue was so high. $1.5b in headphone sales? That's kind of amazing.
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
the split might be irrelevant to you but its not irrelevant to apple or the investor community for sure. For an acquiring company (apple in this case) to value a target company they basically split it in its distinct divisions and value each one separately and then add it all up.
I'm sure Apple did a shitload more research into Beats, and the reasons and benefits of acquisition, compared to how you "feel" about it. The Pros, Cons, everything. Maybe people should give Apple the benefit of the doubt (hasn't it earned at least that?) before jumping to judgement.
Companies have made bad acquisitions, even large ones. Not every purchase apple had ever made had been perfect. I think that saying - because apple bought them it must be a good purchase wouldn't be right. But I do think this deal is better than what I initially thought. When u think about it as a $500 mil purchase for their streaming service, and $2.5 bil for a hardware company that could balance it's own books and make back the cost in a few years. The biggest issue I still have is, apple is going to be associated with beats. Right now, the apple brand is the best brand in the world. Beats has a rep for being overpriced crap. Apple is probably going to get some of that rubbing off on them, unless they sell of the hardware portion in a few years, or lower their prices.
Really, it doesn't matter how the deal was structured -- perhaps Apple had to buy both entities to get the deal to happen. If all they cared about was Beats Music, if they really wanted to get their hands on it, they would have to spend $3B either way.
Trying to figure out how much money they spent on which part is as pointless as trying to figure out how much money you spent on each of your kids during the past year...
Asshole? His posts are on the same level of those of a spam-bot, and yes, I admit that after seeing thousands of these and his attempts to shit up every single thread, I get pretty fucking annoyed at them. If you actually have read my past posts, you would see that I put alot of effort into articulating my point of view and taking a reasoned approach. But and what point does one say enough is enough when it comes to drive-by troll posts who have a one-note posting record? His last few dozen posts have been a variation of LOL TIM COOK IS AN IDIOT and LOL FIRE COOK. The ones before that were a variation of something else just as asinine, all with the same theme of mocking Apple and its products, containing as few words as possible. So please, don't talk to me about class.
Really, it doesn't matter how the deal was structured -- perhaps Apple had to buy both entities to get the deal to happen. If all they cared about was Beats Music, if they really wanted to get their hands on it, they would have to spend $3B either way.
Trying to figure out how much money they spent on which part is as pointless as trying to figure out how much money you spent on each of your kids during the past year...
Quote:
Originally Posted by zoetmb
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
Because down the road you want to see the return on investment. $2.5B for a shitty electronics - headphones? Will Apple make a profit off that by including Beats with iPhones and iPods now? Will these new earphones increase sales? It all remains to be seen.
It will be interesting to see the Apple store employees who have been steering customers away with honesty from Beats now having to tow the line and push this crap.
Why can't they make iTunes a paid subscription service by just allowing us to use iTunes and if you pay for it, instead of it playing a sample, it plays the entire song and the catalog just shows us what's available along with our own library? If you don't pay for the service, then it just plays the sample of the song like it does now. DUH. Jeez. is it THAT difficult to do?
It's only for those that like Brazil that watch soccer that are willing to wear their headphones with their logo on it. I think that's a VERY small market potential. What are they going to do make one for each NBA, NFL, MLB, etc. sport? I know one thing about Apple, they don't like too many sku's and Beats has over 100 of them.
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
It gives us insight into each of these two companies. About $500 million for Beaats Music that only launched earlier this year is very impressive. I'd say that's more impressive than Beats Electronics going for 5x that value after 8(?) years. That is an impressive success story in a short amount of time. I wish I had the wherewithal to create a multimillion dollar company and sell it to Apple just a few years later.
Comments
Two times sales for the whole thing is not a bad deal from another perspective.
You are right two times sales is a great deal for Beats, look at Pandora's and Netflix (profit/revenue), note numbers for Spotify can't be much better these companies are always brought up as companies that Apple should buy, for a what if, look at the numbers dismal is the word, forget about Jimmy or Dr. Dre business wise Apple made good deal looking at the numbers of similar companies.
Note: Pandora is a company with lots of revenue, but no Profit, similar to Amazon.
http://www.wolframalpha.com/input/?i=Pandora+profit+2013
http://www.wolframalpha.com/input/?i=Pandora+profit+2014
http://www.wolframalpha.com/input/?i=Pandora+revenue+2013
http://www.wolframalpha.com/input/?i=Pandora+revenue+2014
http://www.wolframalpha.com/input/?i=Netflix+profit+2013
http://www.wolframalpha.com/input/?i=Netflix+profit+2014
http://www.wolframalpha.com/input/?i=Netflix+revenue+2013
http://www.wolframalpha.com/input/?i=Netflix+revenue+2014
Two times sales is a great deal for Beats, look at Pandora's and Netflix (profit/revenue), note numbers for Spotify can't be much better these companies are always brought up as companies that Apple should buy, for a what if, look at the numbers dismal is the word, forget about Jimmy or Dr. Dre business wise Apple made good deal looking at the numbers of similar companies.
Note: Pandora is a company with lots of revenue, but no Profit, similar to Amazon.
http://www.wolframalpha.com/input/?i=Pandora+profit+2013
http://www.wolframalpha.com/input/?i=Pandora+profit+2014
http://www.wolframalpha.com/input/?i=Pandora+revenue+2013
http://www.wolframalpha.com/input/?i=Pandora+revenue+2014
http://www.wolframalpha.com/input/?i=Netflix+profit+2013
http://www.wolframalpha.com/input/?i=Netflix+profit+2014
http://www.wolframalpha.com/input/?i=Netflix+revenue+2013
http://www.wolframalpha.com/input/?i=Netflix+revenue+2014
I fail to see your point. 2 times sales is not a bad deal thats what I said.. for perspective apple sells at 3 times sales, google at 6
Plus I think apple very easily can double beats sales in 2014 just by making the headphones available in its stores worldwide... if I am correct that would be 1 times sales and thus twice as good a deal
His facts are straighter than yours.
http://espn.go.com/los-angeles/nba/story/_/id/11003237/former-microsoft-executive-steve-ballmer-submits-winning-bid-buy-clippers-according-sources
Check out this bit about the losing bidder: "Geffen's group also included Oracle CEO Larry Ellison and Oprah Winfrey, as well as Guggenheim executives Todd Boehly and Mark Walter, Steve Jobs' widow Laurene Jobs, Steve Wynn's ex-wife Elaine Wynn, and Beats by Dre co-founder Jimmy Iovine."
I knew there was a reason I introduced this topic to this thread. It wasn't off-topic after all. Too bad the Beats deal took so long to come together or Iovine could have won this one.
Beats will be Apple's music brand going forward. Don't expect a Beats phone. Expect Apple designed Beats headphones. Expect a more focused Beats lineup. Expect Apple engineered Beats headphones. If Beats in-ear are continued expect just one model of them going forward. And I wouldn't be surprised to see them drop the speakers entirely. And obviously they are keeping the Beats music service. I must be the only guy who likes this deal. Beats is a name and a logo when it comes to hardware, Apple will now be making the hardware and can do many cool and quality things with it.
World Cup Headset anyone...
They also seem to have difficulties using Siri.
Talk about lowering the level. You might do us all a big favor and stop being an A**hole. There's really no need for the tone that you adopt in almost all of your posts. Stop it please and try to show a bit of class.
Asshole? His posts are on the same level of those of a spam-bot, and yes, I admit that after seeing thousands of these and his attempts to shit up every single thread, I get pretty fucking annoyed at them. If you actually have read my past posts, you would see that I put alot of effort into articulating my point of view and taking a reasoned approach. But and what point does one say enough is enough when it comes to drive-by troll posts who have a one-note posting record? His last few dozen posts have been a variation of LOL TIM COOK IS AN IDIOT and LOL FIRE COOK. The ones before that were a variation of something else just as asinine, all with the same theme of mocking Apple and its products, containing as few words as possible. So please, don't talk to me about class.
Two times sales for the whole thing is not a bad deal from another perspective.
That's exactly right. 2x revenue (or 5-6x earnings) is par for reasonably priced acquisitions. I didn't realize their revenue was so high. $1.5b in headphone sales? That's kind of amazing.
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
It gives us insight into each of these two companies. About $500 million for Beaats Music that only launched earlier this year is very impressive. I'd say that's more impressive than Beats Electronics going for 5x that value after 8(?) years. That is an impressive success story in a short amount of time. I wish I had the wherewithal to create a multimillion dollar company and sell it to Apple just a few years later.
That's exactly right. 2x revenue (or 5-6x earnings) is par for reasonably priced acquisitions. I didn't realize their revenue was so high. $1.5b in headphone sales? That's kind of amazing.
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
the split might be irrelevant to you but its not irrelevant to apple or the investor community for sure. For an acquiring company (apple in this case) to value a target company they basically split it in its distinct divisions and value each one separately and then add it all up.
Companies have made bad acquisitions, even large ones. Not every purchase apple had ever made had been perfect. I think that saying - because apple bought them it must be a good purchase wouldn't be right. But I do think this deal is better than what I initially thought. When u think about it as a $500 mil purchase for their streaming service, and $2.5 bil for a hardware company that could balance it's own books and make back the cost in a few years. The biggest issue I still have is, apple is going to be associated with beats. Right now, the apple brand is the best brand in the world. Beats has a rep for being overpriced crap. Apple is probably going to get some of that rubbing off on them, unless they sell of the hardware portion in a few years, or lower their prices.
Trying to figure out how much money they spent on which part is as pointless as trying to figure out how much money you spent on each of your kids during the past year...
Asshole? His posts are on the same level of those of a spam-bot, and yes, I admit that after seeing thousands of these and his attempts to shit up every single thread, I get pretty fucking annoyed at them. If you actually have read my past posts, you would see that I put alot of effort into articulating my point of view and taking a reasoned approach. But and what point does one say enough is enough when it comes to drive-by troll posts who have a one-note posting record? His last few dozen posts have been a variation of LOL TIM COOK IS AN IDIOT and LOL FIRE COOK. The ones before that were a variation of something else just as asinine, all with the same theme of mocking Apple and its products, containing as few words as possible. So please, don't talk to me about class.
Wrong.
Really, it doesn't matter how the deal was structured -- perhaps Apple had to buy both entities to get the deal to happen. If all they cared about was Beats Music, if they really wanted to get their hands on it, they would have to spend $3B either way.
Trying to figure out how much money they spent on which part is as pointless as trying to figure out how much money you spent on each of your kids during the past year...
As for the split of what Apple paid, I think that's totally irrelevant. Why does it matter how they value each piece of the acquisition?
Because down the road you want to see the return on investment. $2.5B for a shitty electronics - headphones? Will Apple make a profit off that by including Beats with iPhones and iPods now? Will these new earphones increase sales? It all remains to be seen.
It will be interesting to see the Apple store employees who have been steering customers away with honesty from Beats now having to tow the line and push this crap.
Why can't they make iTunes a paid subscription service by just allowing us to use iTunes and if you pay for it, instead of it playing a sample, it plays the entire song and the catalog just shows us what's available along with our own library? If you don't pay for the service, then it just plays the sample of the song like it does now. DUH. Jeez. is it THAT difficult to do?
World Cup Headset anyone...
It's only for those that like Brazil that watch soccer that are willing to wear their headphones with their logo on it. I think that's a VERY small market potential. What are they going to do make one for each NBA, NFL, MLB, etc. sport? I know one thing about Apple, they don't like too many sku's and Beats has over 100 of them.
Be happy with your lot. ????