Seeking Alpha

Apple may make largest acquisition with $3.2B Beats deal

  • Apple (AAPL) may announce a $3.2B deal to acquire headphone maker (and streaming music hawkers) Beats Electronics as soon as next week, Financial Times reports, though final details might still derail it.
  • An agreement to acquire the Dr. Dre/Jimmy Iovine-founded firm would be Apple's biggest ever, and a departure from Steve Jobs-era reticence on big purchases.
  • Beats was valued at a little over $1B after taking a $500M investment from Carlyle in September.
Comments (120)
  • ReligiousWacko
    , contributor
    Comments (1037) | Send Message
     
    omfg .. i hope this is not true.
    8 May, 06:08 PM Reply Like
  • thotdoc
    , contributor
    Comments (1617) | Send Message
     
    second that
    8 May, 06:09 PM Reply Like
  • portatopia
    , contributor
    Comments (545) | Send Message
     
    Beats makes horrible headphone -- all muddy base no clarity and mid-range at all. They rely on heavy advertising to sell inferior products. It would make more sense for Sumsang to buy beats as these two companies has more similarities than beats to AAPL. I hope this is just a false rumor or I will seriously reconsider investing in AAPL and buying their products.
    8 May, 07:02 PM Reply Like
  • szeducate
    , contributor
    Comments (81) | Send Message
     
    My two grandkids both own a use a Beats. You do not have to be an expert to buy this product, its something the younger set loves. I am sure that under Apple's tutelage it will be the best product out there.
    8 May, 07:30 PM Reply Like
  • aow
    , contributor
    Comments (127) | Send Message
     
    It's nothing but a brand though based on the marketing exploitation of Dr Dre who, in 10 years, will almost certainly be unheard of by younger demographics. They're buying the "beats" name for $3B (allegedly) and nothing else (the hardware is awful; they're essentially $20 headphones marketed for $200).
    8 May, 07:44 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (169) | Send Message
     
    If people were all that concerned about audio quality they wouldn't buy 192 kbs digital mp3s on iTunes and listen to them on earbuds.
    8 May, 08:01 PM Reply Like
  • JackKu
    , contributor
    Comments (30) | Send Message
     
    Well, they wouldn't need the headsets of Beats either.
    8 May, 08:42 PM Reply Like
  • jbc123
    , contributor
    Comments (56) | Send Message
     
    At least we can be thankful that Lady GAGA doesn't have a headphone line. If this is true, all I can say is 'Hey that's my money you're spending there'!
    9 May, 12:07 AM Reply Like
  • diaboliqueguan
    , contributor
    Comments (399) | Send Message
     
    You are absolutely right. AAPL should just buy up Sennheiser or Bose.
    9 May, 04:21 AM Reply Like
  • Topcat
    , contributor
    Comments (423) | Send Message
     
    Beats are all about the celebs wearing them, and the pretty colors. I agree about the poor performance (for the price). Fits well with Apple fanboys/girls though, who are content to listen to low quality MP3 audio. It is more about the belonging to a "cool" group that is important. Plus, they get the Android Beats music service. No android user I know is going to use the terrible iTunes, probably the worse piece of computer software ever written. My HTC One is a fantastic phone (MUCH better than iPhone), and has the Beats hw/sw..does sound good on HTC One.
    9 May, 02:25 PM Reply Like
  • Topcat
    , contributor
    Comments (423) | Send Message
     
    Agreed. I think they don't know any better. I use FLAC files on my HTC One (usually converted from CDs). The difference is quite good.
    9 May, 02:26 PM Reply Like
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    either a sign of desperation or extreme genius!
    8 May, 06:09 PM Reply Like
  • inside man 55
    , contributor
    Comments (763) | Send Message
     
    I agree! I wonder what the motivation is for the purchase. I do know that when Mr. Cook drops hints he is very serious. Every hint he has mentioned he has pushed into reality. We'll see what they say. Perhaps it's a move to boost their retail stores. I wonder what the margin is on these high end headphones (probably really good I bet).
    8 May, 06:12 PM Reply Like
  • aow
    , contributor
    Comments (127) | Send Message
     
    Remember 5 years before Beats became popular, everyone was wearing skullcandy headphones, that last headphone fad... well their market cap is now under $200m...
    8 May, 07:50 PM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (269) | Send Message
     
    This would be an ENORMOUS Mistake on the part of Apple... I cannot see this happening...
    8 May, 06:14 PM Reply Like
  • Matt-Man
    , contributor
    Comments (535) | Send Message
     
    Sounds like bs. First paying 3x for company, secondly buying headphone maker that sells with brand mainly as Beats is not making best headset and Apple already has a brand.

     

    More feasible route would be to buy vendor that is designing speakers on highend headsets and use 'Apple hifi' or what ever as a name for new headset line.

     

    Overpaying for Beats sounds stupid.
    8 May, 06:16 PM Reply Like
  • Emmanuel Nogueira
    , contributor
    Comments (269) | Send Message
     
    Dr. Dre making out like a bandit. Gangsta.
    8 May, 06:18 PM Reply Like
  • jbushman92
    , contributor
    Comments (17) | Send Message
     
    Maybe he will have enough time to finish and release Detox now...
    8 May, 08:51 PM Reply Like
  • defunkdreader
    , contributor
    Comments (53) | Send Message
     
    Maybe he will have enough money to buy the Clippers now...
    9 May, 12:21 AM Reply Like
  • tmoney094
    , contributor
    Comments (158) | Send Message
     
    I like this move, though I'm a lot younger than many people on here. Although if people are complaining about the 3.2B valuation I understand. I know a lot of friends that own Beats headphones and love them. I consider them somewhat like Apple in that it's looked at as a high end product, similar to the iPhone in that their headphones go for a pretty lofty price ($300+) compared to other products. I'd say the high end consumer who has money to buy an iPhone would also pay up to get Beats, but that's just me. I'll let the Apple insiders do what they think is best and just sit back and collect my dividend.
    8 May, 06:18 PM Reply Like
  • Energysystems
    , contributor
    Comments (1071) | Send Message
     
    Beats look like they're a high end product, and are priced like a high end product, but anyone that knows audio knows they are junk. It fits the Apple ideal, get consumers to overspend for lower end products in shiny boxes.
    8 May, 06:22 PM Reply Like
  • portatopia
    , contributor
    Comments (545) | Send Message
     
    Exactly, Beats sales overpriced junk. If someone really care about audio quality I would highly recommend Etymotic, Grado headphones.
    8 May, 07:05 PM Reply Like
  • aow
    , contributor
    Comments (127) | Send Message
     
    Much rather see that $3.2B be used for share buybacks or a dividend... not buying into a product that will almost certainly not be alive in 10 years . Beats headphones look like crap (you look like a total douche wearing them) and I get better sound out of a $30 pair of sennheisers.
    8 May, 07:47 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (169) | Send Message
     
    Apple is going to turn away the ever coveted audiophile demo .... all twelve of them.
    8 May, 07:59 PM Reply Like
  • logic001
    , contributor
    Comments (139) | Send Message
     
    Beats is too much associated with HTC. That price must be BS. Beats just bought HTC 25% ownership back for $325m.
    8 May, 06:20 PM Reply Like
  • diaboliqueguan
    , contributor
    Comments (399) | Send Message
     
    Integrating Beats into HTC One still didnt help lift the sales one bit!
    9 May, 04:22 AM Reply Like
  • Sirvasq
    , contributor
    Comments (322) | Send Message
     
    It's the London Financial Times, geniuses. It's second source verified. Subscription music purchasing ala Spotify is killing Itunes music consumption. And clearly, they plan to leverage the Beats branding for accessories, like headphones. Huge profit in that.
    8 May, 06:21 PM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (269) | Send Message
     
    beats music service is by no means "killing iTunes music consumption"... What planet are you on?
    8 May, 06:27 PM Reply Like
  • Hank890
    , contributor
    Comments (1081) | Send Message
     
    So, lets see if it really happens.
    8 May, 07:41 PM Reply Like
  • chipster71
    , contributor
    Comments (20) | Send Message
     
    You misread his message, he was saying Spotify was killing Itunes. Apple is doing this play for the beats brand marketing.
    8 May, 10:48 PM Reply Like
  • skleiniv
    , contributor
    Comments (74) | Send Message
     
    While I have no idea what apple is up to it doesn't make sense to buy this company for such an extremely high price! However, and this is a big however, if Beats owns a specific patent on music streaming or the music streaming on beats has something apple needs then the buy might make sense. However if this was the case overpaying makes no sense. Beats headphones are not the best out there, and since apple only wants to sell high end product lines, owning this portion of the business seems counterproductive to their business theme.
    8 May, 06:23 PM Reply Like
  • Jason Aycock
    , contributor
    Comments (109) | Send Message
     
    I would look to the streaming-music side of this for the whys ... at least based on everything I've heard about the phones.
    8 May, 06:26 PM Reply Like
  • Hank890
    , contributor
    Comments (1081) | Send Message
     
    Beats is a somewhat different demographic than the mainstream Apple customer;.....it might broaden AAPL appeal into a group it wants to pursue.

     

    Very high end headphones,...perhaps with SIRI built in,...or perhaps with a discrete fold down monocle eyepiece,....actually might be a different category altogether.

     

    Is the firm US or European registered?
    8 May, 06:29 PM Reply Like
  • tmoney094
    , contributor
    Comments (158) | Send Message
     
    "Dre and his co-founder Jimmy Iovine, who together control 75 percent of the company, intend to get Beats not just onto our heads but into our homes and automobiles by expanding into “speakers, audio systems in cars and consumer electronics, and a soon-to-be-launched online streaming music service,” as the WSJ reported.
    According to a recent piece in the Wall Street Journal, Beats revenues increased fivefold between 2010 and 2012 alone, hitting the $1 billion mark. As of this summer, some 59 percent of high-end headphones sold in the U.S. bear the Beats logo."

     

    That might be a clue?

     

    http://slate.me/1j7QzUY
    8 May, 06:30 PM Reply Like
  • Hank890
    , contributor
    Comments (1081) | Send Message
     
    Well maybe, ...but what is the definition of high-end headphone? Is it 59% of 4.5% of the total headphone market,...by unit, or by dollar?

     

    The details count.
    8 May, 07:47 PM Reply Like
  • rroo
    , contributor
    Comments (122) | Send Message
     
    It seems to me it is somehow related to the iwatch. I have been wondering how the sound would get from the watch to the ear. You can talk to the wrist, but it's harder to listen.
    8 May, 07:50 PM Reply Like
  • Glenway Fripp
    , contributor
    Comments (954) | Send Message
     
    From the article:'They aren’t trendy fashion accessories at heart, either. Beats by Dre are actually bass-delivery systems.' .....which seemed to be the thrust of the article despite a brief mention of wanting to get into car audio systems. God! How many Apple users are idiots enough to want to drive in a car that is propelled by two deafening sub woofers?!?!?!?! Doesn't sound like a winning combination to me. No ...... there must be something else. I think there is something else about beats, other than Bass, that tweaked the heads at Apple.
    8 May, 09:20 PM Reply Like
  • jeepnsam
    , contributor
    Comments (50) | Send Message
     
    That's a no brainer deal.

     

    Beats market share is HUGE amongst teens and the like. Image streaming Apple iTunes Music direct to your Beats headphones that are solar powered without the use of an iPhone tether.

     

    Or stream music from your iPhone to your solar powered Beats headphones.

     

    Pretty darn cool
    8 May, 06:31 PM Reply Like
  • exemp
    , contributor
    Comments (12) | Send Message
     
    Sounds not so bright but a Apple TV with Beats Audio. Well standby Bose and Sony.
    8 May, 06:35 PM Reply Like
  • Tippydog
    , contributor
    Comments (1917) | Send Message
     
    I've heard so much negative commentary about this deal. I'm not sure why everyone hates it. I normally don't trust paying up for M and A. But this one seems like a good fit to me. I bet it can be very accretive and additive. They sell an awful lot of Beats products in the Apple Store, so they should have confidence about what they are getting, and what the customers think about these products.

     

    Its natural for Apple to spread out into peripherals, and this is category that they know so well. Its also a good brand, with a good upscale and young demographic.

     

    Maybe its just a relief to me that they aren't using cash to go do some huge deal, like Twitter or Netflix. The Whatsapp deal is a nightmare. Happy to see Apple stay away from paying up for too much phony sizzle.

     

    Long live the D R E.
    8 May, 06:36 PM Reply Like
  • brittlerock
    , contributor
    Comments (145) | Send Message
     
    I don't know about the Beats deal, but Whatsapp a nightmare? That's what I thought at first, but think about it, 500M mostly new users in Asia, of those, mostly Chinese. Maybe you're unaware, Facebook is blocked in China. How else were they going to get into that market?
    8 May, 09:40 PM Reply Like
  • dgilbertmusic
    , contributor
    Comment (1) | Send Message
     
    Long since 16... but this scares me!
    8 May, 06:36 PM Reply Like
  • mulls4941
    , contributor
    Comments (2) | Send Message
     
    There are a lot of "i"s in ihifi ... No precedent for apple acquiring a brand for the brand, which is what the 3x would be for ...
    8 May, 06:36 PM Reply Like
  • Christopher_R
    , contributor
    Comments (8) | Send Message
     
    Wow, this is great news another high end product they can market in apple stores. Wonder when it will work with Apple TV, iPhone and Siri, sounds like the beginning of Apple's assault on home automation.
    8 May, 06:37 PM Reply Like
  • astern40
    , contributor
    Comments (4) | Send Message
     
    Apple could be trying to move into some streaming subscription service to help boost iTunes revenue.

     

    From The Beats Music App Page:

     

    Beats Music is a new kind of streaming service that combines the best music experts and technology to always deliver you the right music at the right time. All you have to do is hit play.

     

    Access over 20 million songs, from every genre. Listen instantly or save to your device to listen to offline.

     

    When you’re not sure what to play, lean on us. Here are just a few features that’ll make it easy for you:

     

    Praise from the press:

     

    "Beats Music comes closer than other services at transporting you to a beloved record store that's flush with musical finds — and savvy experts to direct you.” - Mike Snider, USA TODAY

     

    "At the heart of every winning aspect of Beats is a commitment to what should be obvious in 2014 — that music is not a product, but a process grounded in the human impulse to connect.” - Ann Powers, NPR

     

    "I'm turning to Beats for its lively app and fun approach to music discovery.” - Joanna Stern, WSJ
    8 May, 06:37 PM Reply Like
  • Glenway Fripp
    , contributor
    Comments (954) | Send Message
     
    Hearing this convinces me that the acquisition ain't for the headphones.
    8 May, 07:56 PM Reply Like
  • chipster71
    , contributor
    Comments (20) | Send Message
     
    Priceless buying a speaker company for it's software and not it's hardware.
    8 May, 10:54 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (4753) | Send Message
     
    As I had mentioned on Twitter an important question is whether AAPl can use the same licenses:

     

    @talesftf: The $AAPL + Beats billion $ question: Are the music/streaming licenses transferable in the event of an acquisition? http://t.co/TJRYRWxs9N
    9 May, 05:29 AM Reply Like
  • Stox4luis
    , contributor
    Comments (5) | Send Message
     
    Beats are considered "classy" by hipsters and other youngsters....but they look uncomfortable to me ...and my daughter ( who has always listened to her iPod music via several superb sounding headphones i have provided for her from Sennheiser and several recording-industry-sta... Sonys) says they sound like crap. I have mucho mangos invested in AAPL...i hope this is not true...OR that there is some mega patent that Cook et al are getting to potentiate profits.
    8 May, 06:37 PM Reply Like
  • XPuR3
    , contributor
    Comments (42) | Send Message
     
    This better not happen. $3.2 B could be put to use in a much better way. Why not build your own headphones for 3.2B?
    8 May, 06:43 PM Reply Like
  • Matt-Man
    , contributor
    Comments (535) | Send Message
     
    Yes, as a comparison Sennheiser revenue is about 800m$, I am sure one could buy them (private) with lower than Beats. And Apple would even get some quality with the money.
    8 May, 06:55 PM Reply Like
  • astern40
    , contributor
    Comments (4) | Send Message
     
    Because then they wouldn't be Beats headphones
    8 May, 08:52 PM Reply Like
  • XPuR3
    , contributor
    Comments (42) | Send Message
     
    But they would have the apple logo
    8 May, 09:26 PM Reply Like
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    which better way? it makes no difference if you have hundreds of billions in cash, some of it must be used on smart acquisitions and theres no proof its not a good one. apple longs are so fearful of them entering new areas! makes you wonder.
    9 May, 01:57 AM Reply Like
  • Shaduc
    , contributor
    Comments (1230) | Send Message
     
    " it makes no difference if you have "

     

    ERODING fiduciary responsibility to the investors. Look what it had done to HWP over the last 15 years, the mgmt mismanagement couldn't even hide as HPQ!
    9 May, 02:17 AM Reply Like
  • C.N
    , contributor
    Comments (174) | Send Message
     
    it is only 30 days of profit for AAPL.
    8 May, 06:53 PM Reply Like
  • howiekap
    , contributor
    Comments (4) | Send Message
     
    Going after a younger demo and Beats streaming - definitely worth the money.
    8 May, 07:09 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3658) | Send Message
     
    $3.2B is nothing if it solidifies their lock-up on the audio/music sector. Lots of money in music sales and streaming if done right.

     

    I agree that buying Sennheiser for <$2B makes better sense (if possible).

     

    I'd rather AAPL bought back $3.2B more worth of shares, but the clowns on here would probably complain about that as well.
    8 May, 07:15 PM Reply Like
  • Claret Dragon
    , contributor
    Comments (21) | Send Message
     
    Too much spare cash and don't know what to do with it.

     

    Desperation on this one.
    8 May, 07:19 PM Reply Like
  • Shaduc
    , contributor
    Comments (1230) | Send Message
     
    If this be true, it may show how desperate Apple is for growth. Let's see how Apple does, as HTC failed to increase its value ...
    8 May, 07:23 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3658) | Send Message
     
    Are you kidding? HTC made off like bandits on their investment.
    8 May, 08:29 PM Reply Like
  • Shaduc
    , contributor
    Comments (1230) | Send Message
     
    J Mintzmyer:

     

    I appreciate your clarification. But why has HTC not been able to leverage that acquisition and sale to maintain premium smartphones (as it was the 1st Nexus beneficiary).
    8 May, 08:33 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3658) | Send Message
     
    HTC makes sub-par smartphones in the premium end. Wife and I own HTCs (One- I believe? Whatever the flagship was 12m ago) and they are total crap. My previous phone was an HTC (Evo 4G) and it was competitive. Should have paid $100 more and got iP5...

     

    Definitely not Beats problem. HTC is failing because they make mid-grade products.

     

    8 May, 08:50 PM Reply Like
  • Shaduc
    , contributor
    Comments (1230) | Send Message
     
    http://on.recode.net/1...
    In all, HTC got $415 million back on its $300 million investment.

     

    “With the magic of mobile devices, it is easier than ever to discover and buy new music,” HTC CEO Peter Chou said in an interview at the time. “However, without great sound experience, it is a shame.”.

     

    In a sign of just how far the Beats-HTC partnership has frayed, HTC recently announced a souped-up audio version of its latest One phone — in partnership with Beats rival Harman Kardon.
    9 May, 04:36 AM Reply Like
  • Glenway Fripp
    , contributor
    Comments (954) | Send Message
     
    People! People! We don't know why Apple bought beats if they bought beats. I always assume acquisitions have lot to do with IP; less to do with current product lines.........
    8 May, 07:30 PM Reply Like
  • Shaduc
    , contributor
    Comments (1230) | Send Message
     
    acquisitions have a lot to do with a certain workforce also, at least that's what I learned in MBA education!
    8 May, 07:34 PM Reply Like
  • Glenway Fripp
    , contributor
    Comments (954) | Send Message
     
    Of coarse! The people are important too.. I should have said that! Big "LIKE" to your reply!
    8 May, 07:52 PM Reply Like
  • Julian Acosta
    , contributor
    Comments (126) | Send Message
     
    There's no way this is happening.
    8 May, 07:35 PM Reply Like
  • Riverrun
    , contributor
    Comments (226) | Send Message
     
    I am sure Tim Cook will be tuning in here to find out what he's doing.
    8 May, 07:36 PM Reply Like
  • joeeckhardt
    , contributor
    Comments (182) | Send Message
     
    Stupid waste of money. If they want to throw that kind of money around they should buy the medical company who has the StarTrek like medical scanner.
    8 May, 07:40 PM Reply Like
  • James Yardley
    , contributor
    Comments (105) | Send Message
     
    You guys are missing the point. It has nothing to do with the product and everything to do with the brand. $3.2bn is really nothing to Apple. I don't see a lot of downside to this although the press will spin it as Apple not innovating.
    8 May, 07:43 PM Reply Like
  • milehr
    , contributor
    Comments (490) | Send Message
     
    Strongly object. Hope it is not true. Makes me wish that the results of the last quarter weren't so good.
    8 May, 07:48 PM Reply Like
  • scott trader
    , contributor
    Comments (4770) | Send Message
     
    Please no...not familiar with beats products but I am sure they could organically come up with a great headphone...
    8 May, 07:57 PM Reply Like
  • FAT BANKER
    , contributor
    Comments (904) | Send Message
     
    People are getting irrationally worked up about this. IF Apple do this I trust them totally as I know that there is a huge historical president to say they are always spot on the button.
    8 May, 07:57 PM Reply Like
  • scott trader
    , contributor
    Comments (4770) | Send Message
     
    Just looke d up beats they make earphone headphones and the gold pill speaker.
    8 May, 08:00 PM Reply Like
  • sglaney
    , contributor
    Comments (58) | Send Message
     
    I will sell my shares of AAPL if they buy Beats.
    8 May, 08:10 PM Reply Like
  • FAT BANKER
    , contributor
    Comments (904) | Send Message
     
    "I will sell my shares of AAPL if they buy Beats."
    TOTALLY IRRATIONAL - how many have you got?
    8 May, 08:23 PM Reply Like
  • tehfleet
    , contributor
    Comments (11) | Send Message
     
    sad thing is apple lovers will still buy beat headphones
    8 May, 08:14 PM Reply Like
  • FAT BANKER
    , contributor
    Comments (904) | Send Message
     
    Re tehfleet. Comment 8

     

    I am a musician (one of my sins) so I find it totally amazing
    how the vast majority, that is the tone deaf, whine on about the subtle
    nuances of speaker and headphone sound quality when they are truly not equipped to perceive the difference, particularly when many of the 'valued' parameters are subjective ! LOL.
    IF Apple bought this company, clearly they have the expertise and technology to improve what already exists and in any case, it would seem logical that streaming is a huge part of Apple's interest - if this RUMOUR happens to be correct that is.
    Chill and Trust.
    8 May, 08:44 PM Reply Like
  • tehfleet
    , contributor
    Comments (11) | Send Message
     
    plausible but if they sell it "as-is" then this will probably hurt the brand as beats headphones have inferior sound and apple is supposed to focus on quality products
    8 May, 08:59 PM Reply Like
  • raincity
    , contributor
    Comments (219) | Send Message
     
    Well said @Fat Banker
    9 May, 02:32 AM Reply Like
  • khoa_van
    , contributor
    Comments (33) | Send Message
     
    Tim and Apple’s team are not idiots in buying a company at 3 times the price. They must see something in the company or patents that are very valuable to Apple. Tim has been buying billions of Apple shares since stock’s price was less than $500. Haters will still complains if Apple spends additional 3 billions on stock buy back or sitting on mountain of cash. I have long since 400 and believe Apple is still the best priced stocks even at the current price level.
    8 May, 08:20 PM Reply Like
  • milehr
    , contributor
    Comments (490) | Send Message
     
    Or they may be paying ransom to the hedgies.
    8 May, 10:15 PM Reply Like
  • Kenneth Pittman
    , contributor
    Comments (31) | Send Message
     
    Maybe Samsung should buy Skullcandy ;)
    Although I still think Nike is going to
    8 May, 08:20 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (4753) | Send Message
     
    You beat me to it :) SKUL is just $200 million in mkt cap at the moment.

     

    But as I noted above, I doubt AAPL buys Beats just for the hardware, many other angles (streaming, music licenses, music shuffling algos etc.)
    9 May, 05:32 AM Reply Like
  • garysund
    , contributor
    Comments (223) | Send Message
     
    If this rumor turns out to be true then I am sure Apple knows exactly what they are doing and they will make plenty of money doing it. Seems like everyone wants to pounce in with negative comments and speculation. The money they would buy the company with is peanuts. I know several kids that own the product and they love it. Apple it looking more at the streaming business then the headphones is my educated guess.
    8 May, 08:43 PM Reply Like
  • astern40
    , contributor
    Comments (4) | Send Message
     
    More on Beats streaming music:

     

    Iovine thinks his service will address that problem. He said in the interview that tech companies are "culturally inept," which makes them incapable of succeeding in subscription-based music.

     

    "Subscription needs a programmer. It needs culture. And tech guys can't do that," Iovine said. "They don't even know who to hire. They're utilities."

     

    Apple is getting hip
    8 May, 08:46 PM Reply Like
  • gee4time
    , contributor
    Comments (4) | Send Message
     
    Wonder where Financial Times got the $3.2Billion figure. Don't think Beats Electronics is valued at $3.2 billion. Someone must have gotten the figures wrong.
    8 May, 08:48 PM Reply Like
  • dhruvky
    , contributor
    Comment (1) | Send Message
     
    I think it will be a very profitable move for AAPL. It will get them in even more retail space and stores. People will be willing to buy a iPhone over a samsung phone if it is bundled with beats.
    8 May, 08:49 PM Reply Like
  • Anmorrison725
    , contributor
    Comments (4) | Send Message
     
    Is everyone oblivious to the headphones with biometrics?? Seems like something could be brewing in Cupertino. I like the acqusition.
    8 May, 08:51 PM Reply Like
  • joeeckhardt
    , contributor
    Comments (182) | Send Message
     
    If it's biometrics they want, they are buying the wrong company. See above.
    9 May, 09:00 AM Reply Like
  • Anmorrison725
    , contributor
    Comments (4) | Send Message
     
    Are they making a mistake? You ask every kid from the age of 8-25 what headphones they would want. 99% would say "beats." Strange this comes about just after the rumors of them making headphones with sensors. They can do that in house. The produce them quicker they buy "beats" and add the sensors to them. "Beats" already have and enormous fan base. And this is just the headphones, beats streaming music app will help Apple compet and take market share away from pandor and spotify. Genius acqusition if ask me.
    9 May, 09:48 AM Reply Like
  • JackKu
    , contributor
    Comments (30) | Send Message
     
    Where is this world going to? Some shithead puts his name to a headphone, with awful quality, and it's worth 3B?
    I see companies with over 10-20k employers making real products, over 10s of years, worth less then that. CRAZY world.
    More and more, few people are getting very very rich. And many many people are paying for them to become that rich. STUPID world
    8 May, 09:08 PM Reply Like
  • caldiggs
    , contributor
    Comment (1) | Send Message
     
    I will stick with my $20. ear buds. Give us the share holder the money. Apple could invent, o let's say Apple headphones. What suckers are they with (our money)!!!!!
    8 May, 09:08 PM Reply Like
  • 12$SNTS
    , contributor
    Comments (2) | Send Message
     
    Why pay for a company that produces an inferior, overpriced product? What an incredible waste of capital - not to mention the damage to Apple's brand and the subsequent cost to fix it. For a interesting meld of technology, I would understand buying Bang & Olufsen.
    8 May, 09:35 PM Reply Like
  • FAT BANKER
    , contributor
    Comments (904) | Send Message
     
    12$SNTS. Comment

     

    If Google bought Beats for say $6million, The World, WallStreet and it's Dog/s would be applauding and saying this is
    the Next Big Thing :GoogleMuffs. LOL.
    You say:-
    "For a interesting meld of technology, I would understand buying Bang & Olufsen."
    Yeah, B & O are excellent but not really COOL. You have got to look at the demographics.
    9 May, 10:40 AM Reply Like
  • FAT BANKER
    , contributor
    Comments (904) | Send Message
     
    Whoops - Fat Banker, Google would pay no less than $6BILLION for Beats not $6 million.
    Thanks , on Google's past performance you are correct it would be $6Billion AND The World, WallStreet and it's Dog/s would be applauding and saying this is
    the Next Big Thing :GoogleMuffs. LOL.
    FAT BANKER
    9 May, 10:52 AM Reply Like
  • Topcat
    , contributor
    Comments (423) | Send Message
     
    It is the music service/customers they want.
    9 May, 02:31 PM Reply Like
  • Scotty666
    , contributor
    Comments (7) | Send Message
     
    This is it. The very moment when Apple Jumps the Shark!
    8 May, 09:38 PM Reply Like
  • kimboslice
    , contributor
    Comments (1487) | Send Message
     
    Oh no. Beats has no technology that Apple needs.
    8 May, 09:51 PM Reply Like
  • JasonMiles
    , contributor
    Comments (136) | Send Message
     
    Have you been to an Apple store recently? They sell mostly Beats Headphones. We are in a headphone world and beats is an încreibly popular brand. Every athlete you see uses Beats. I personally think they are crap having been in the music business for many years but I don't downplay the influence of a younger generation. Their is something more to this whole scenario that we may not know yet. Just doesn't quite feel right.
    8 May, 11:06 PM Reply Like
  • scott trader
    , contributor
    Comments (4770) | Send Message
     
    They also sell a basketball at apple stores that trains you..,,, not related to beats ...

     

    ..I am sure they will use the streaming service thru itunes and Steve Jobs and the cofounder of Beats were friends...
    8 May, 11:29 PM Reply Like
  • mscottbone
    , contributor
    Comments (54) | Send Message
     
    I think EVERYONE is looking at this the wrong way.

     

    Beats has already negotiated the terms for a streaming service (like Spotify.) This is a space Apple is dying to get into. They think the terms Beats was able to negotiate with the recording industry were far better than they would have been able to negotiate with the entire world knowing of their $150b cash surplus and their overwhelming saturation.

     

    Apple might like the brand, but I promise it is not worth $3b to them. What is worth $3b to them is the idea of taking over a streaming service without the headache of the legal proceedings.
    8 May, 11:07 PM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (554) | Send Message
     
    Dr. Dre made out like a bandit! I always knew he would. Apple will make their investment back in a year on this purchase. 3.2 billion No big loss to apple. Apple needs to take risks. Congrats Dre it's been a long time since NWA. Apple good luck, you'll need it!
    8 May, 11:43 PM Reply Like
  • barobbin
    , contributor
    Comments (2) | Send Message
     
    Relax, everybody. Here is his motivation, quoted from Bloomberg three hours ago:

     

    "A deal for the Santa Monica, California-based company, which was founded by music-industry executive Jimmy Iovine and hip-hop artist Dr. Dre, would bolster Apple’s online music capabilities by giving it ownership of the Beats Music service that started earlier this year. For $10 a month, subscribers get unlimited access to all of the songs in the service’s catalog through a smartphone, tablet or Web browser."
    8 May, 11:57 PM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
     
    Wow, a whole gol dern herd of certifiable experts here aint there. Gee whiz ma grab the pickup and the chickens and let's get outta town 'fore the storm hits. Guaranteed a bunch of squawkers on here now were probably just touting TC and Apple's "genius guidance" just a week or so ago when the earnings report padded their almighty wallet and now just about everyone knows better than them. You don't understand because you can't understand, you don't manage Apple and you don't have the info they do. Relax and let this pan out and everything will become clearer soon enough. There's obviously more to it than some personal fetish Tim Cook has for overpriced, overhyped headphones. Still think you're the expert and know better then sell all your shares and bring the price down. I'll be happy to pick them up.
    9 May, 12:37 AM Reply Like
  • FAT BANKER
    , contributor
    Comments (904) | Send Message
     
    Re duhaus. Comment 115

     

    Very funny , LOL.
    9 May, 10:59 AM Reply Like
  • theantiantihero
    , contributor
    Comments (105) | Send Message
     
    APPL is expected to pay $3.2 Billion for a company that was valued at $1 Billion last year?!

     

    Um...why?
    9 May, 01:03 AM Reply Like
  • Shaduc
    , contributor
    Comments (1230) | Send Message
     
    Are you anti antihero as intelligent as Tim Cook and ay of Apple's senior management?

     

    I'm not!
    9 May, 01:08 AM Reply Like
  • theantiantihero
    , contributor
    Comments (105) | Send Message
     
    There are many things I don't know, but I do know that, as a shareholder, I have the right to ask questions. Historically, most acquisitions end up being bad deals for the shareholders because management has a tendency to overpay.

     

    It's very possible that Beats was undervalued last year and that APPL has discovered some hidden asset or advantage that makes the company 3x more valuable than anyone previously thought. But maybe not! If the deal goes forward, we'll find out...
    9 May, 01:46 AM Reply Like
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    much ado about NOTHING! so many whiners. 160$ billion in cash, they need to spend it. when have they misused it on any of their other buyouts?
    9 May, 04:19 AM Reply Like
  • joeeckhardt
    , contributor
    Comments (182) | Send Message
     
    Most of that cash they can't use unless they want to throw away 35% first.
    9 May, 09:03 AM Reply Like
  • Moderation
    , contributor
    Comments (242) | Send Message
     
    I din't know exactly what the motivation is for this deal, but I will say this-despite protests to the contrary, Beats headphones are most definitely a fashion item here in New York. I see lots of kids wearing them on the subway every day, and they're wearing them as a fashion statement.
    9 May, 05:16 AM Reply Like
  • PandaBearish
    , contributor
    Comments (26) | Send Message
     
    @ everyone who's saying Beats are $XX headphones marketed for $200... Apple's are $XX Laptops marketed for significantly higher than their hardware components too. You pay for the logo, you pay for the OS, you pay for having "Apple", the same way these people pay premiums for owning "Dr.Dre Beats".

     

    Get over yourself and stop being a hypocrite.
    9 May, 07:05 AM Reply Like
  • joeeckhardt
    , contributor
    Comments (182) | Send Message
     
    I buy Apple products for the quality and ease of use, not the stupid logo.
    9 May, 09:04 AM Reply Like
  • tiger8896
    , contributor
    Comments (614) | Send Message
     
    Gene Muenster said a Beats buyout would be a "bad idea". Cook would be an idiot to pay 3.2B for Beats but I bet he pulls the trigger despite the overwhelming lack of support for the buyout.
    9 May, 07:36 AM Reply Like
  • dbuttry
    , contributor
    Comments (40) | Send Message
     
    This purchase is about the transition to streaming and away from music downloads. It may turn out to be a smart move.
    9 May, 07:36 AM Reply Like
  • Michael Reilly
    , contributor
    Comments (11) | Send Message
     
    Didn't like the sound of this deal first, but it would start to make sense if the TV is coming...it might appear to be a stretch, but is it?
    9 May, 08:21 AM Reply Like
  • mbwalpha
    , contributor
    Comments (49) | Send Message
     
    Before all of you have coronaries wringing your hands about the Beats acquisition, watch this video and consider just how visionary Apple is being. This will put them light years ahead of the competition in "curating" music for a new generation and a new world. Yes, the video is about 40 minutes which is about 40x the attention span of the average commentor on here, but if you want to really understand instead of just flapping your jaws, WATCH:

     

    http://bit.ly/1sahQvA

     

    Another huge reason to BUY AAPL! Right here.
    9 May, 11:57 AM Reply Like
  • Glenway Fripp
    , contributor
    Comments (954) | Send Message
     
    Very interesting interview. The idea of human beings curating song lists instead of algorithms is compelling. Algorithms can miss things that human brains would catch right away simply because algorithms operate on gigantic databases but with narrow perception. My best example is I was having a movie night and the theme was Alaska movies. Netflix's algorithms never recognized the connection because no one thought of putting movie location in the algorithm. It never curated a list of Alaskan movies! A smart human would have picked out the pattern after three movies. So far Artificial intelligence is a parlor trick of adding enough complexity to a program to make it seem intelligent. As soon as you step outside the program the program becomes idiotic. Iovine is a breath of fresh air! He is a humanist not a technocrat. He will have a lot of appeal to people like me who love technology but also feel like important things get stripped out of our experience by computers because human experiences don't fit the computer's model of what humans should be.

     

    Thanks Mbwalpha
    10 May, 10:44 AM Reply Like
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