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Old May 23, 2014, 07:50 PM   #1
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Apple's Acquisition of Beats Could Be Delayed Because of Valuation, Roles, and More




Last week, reports indicated that Apple's acquisition of Beats would not be finalized until this week. With the week ending and no deal having been announced, a new Billboard report offers insight into what could be holding up the deal.

Billboard's sources indicate the deal "is complicated", as it would be Apple's largest acquisition. In addition, the news apparently leaked "too early", with Apple nowhere near ready for news to break despite publications like Re/code and The Financial Times reporting that the deal is close to completion.

A video that was uploaded to YouTube of actor/musician Tyrese alongside Beats co-founder Dr. Dre is another possible reason for the delay, with Dre claiming that he was the first billionaire in hip hop after the deal. The video apparently "freaked Apple out" and had the Cupertino company outraged.
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Apparently, the Apple family near imploded with outrage when that video went up on Facebook of an 'excited' Dr. Dre with R&B singer/former Coca Cola pin-up Tyrese. In the video they share, in language perhaps unsuitable for a family blog, how Dre will be hip-hop's first billionaire and other nice things about Compton.
Fourth, Apple allegedly isn't sure whether to give Beats co-founders Jimmy Iovine and Dr. Dre roles as permanent consultants or whether to give them full-time executive roles. Apple is also apparently unsure whether the two of them would fit into the company's corporate climate, despite reports that Iovine and Dre are the "big prizes" of the acquisition.

Finally, another rumored sticking point is Apple's valuation of Beats Music, which has around 200,000 subscribers and has been speculated as one of the main reasons behind the acquisition. Apple is apparently planning to keep Beats Music separate entity from iTunes in order to avoid cannibalization of iTunes music sales.

Apple pundit John Gruber of Daring Fireball offered another scenario, discrediting the Billboard report and speculating that Beats may have leaked to the deal, angering Apple and scuttling the acquisition before it could be completed.

Article Link: Apple's Acquisition of Beats Could Be Delayed Because of Valuation, Roles, and More
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Old May 23, 2014, 07:53 PM   #2
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I can only hope that it's delayed indefinitely.
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Old May 23, 2014, 07:53 PM   #3
irfan22
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I've read so many articles giving reasons why they are buying beats. It still doesn't make any sense to me.

Hopefully Apple's official statement/WWDC will give real insight, once the deal is finalized (but hopefully not).
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Old May 23, 2014, 07:55 PM   #4
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I like Gruber's take on things. Then again, why would Apple pay that much money for something that could be ruined so easily by a leak?
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Old May 23, 2014, 07:55 PM   #5
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I hope they just don't buy them.
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Old May 23, 2014, 07:56 PM   #6
Aussi3
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Leave now while you still have the chance!!! It's way over priced
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Old May 23, 2014, 07:56 PM   #7
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The longer this goes own, the less likely it seems. I still cannot see what Apple gain out of this deal that they couldn't do by themselves. Is the 'expertise' of Dre and Iovine worth that much?
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Old May 23, 2014, 07:57 PM   #8
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That is all I have to say


Last edited by troop231; May 23, 2014 at 08:05 PM.
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Old May 23, 2014, 07:57 PM   #9
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This deal indeed looks very UNAPPLE. I never thought, the people behind iTunes success are so incapable to create the best streaming service on this planet. Just strange days we live in, really. Hell yes! it is extremely overpriced, based on rumors. It feels like Apple just stepped onto the dead-beat's poo.
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Last edited by AnalyzeThis; May 23, 2014 at 09:03 PM.
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Old May 23, 2014, 07:58 PM   #10
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I didn't think that video Dre made would help the negotiations. It came off very smug and I'm sure Tim Cook didn't like it one bit.
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Old May 23, 2014, 08:03 PM   #11
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It's a BS Rumor.
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Old May 23, 2014, 08:03 PM   #12
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Here we go with this crap again..."It's so not Apple", "beats are overpriced pieces of crap", "Oh I'm such an audiophile I critique the lows mids and highs of my own farts and I'll tell you beats are garbage"....Give it a rest...Apple is buying Beats..get over it.
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Old May 23, 2014, 08:03 PM   #13
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If anybody mistakenly ingested poison in the past few minutes and needs an emetic, I suggest giving the YouTube comments on the video in the article a browse.

Update: I've been informed that the video has the same effect.

Last edited by AngerDanger; May 24, 2014 at 09:16 PM. Reason: update
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Old May 23, 2014, 08:04 PM   #14
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One year from now:

Apple still close to acquiring Beats Electronics, says analyst.
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Old May 23, 2014, 08:05 PM   #15
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HAHAHA

let the media backpedal begin. This was all ******** from the beginning.
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Old May 23, 2014, 08:08 PM   #16
Amacfa
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Good job Dr. Dre
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Old May 23, 2014, 08:09 PM   #17
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Read a fair bit about this potential acquisition but that was the first time I'd seen the Dre video.

If the deal wasn't sealed prior to him doing the YouTube video I think he's just shot him self in the foot with an AK.

Until the check is in the bank it's not your money - I thought he'd be a bit more business savvy than that, obviously not.

Apple does need to 'acquire' Jimmy Iovine. He is where it's at when it comes to taking the pragmatic approach to the way the music industry has been and is heading. Not to mention he has the cred in the industry and the smarts to make the negotiations.

I could see Iovine on the executive team as "iTunes Manager" or something along those lines.

Dre, I can't see being part of the Apple executive/corporate environment.

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Old May 23, 2014, 08:11 PM   #18
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Why don't they just acquire Spotify? Worth approximately 4 billion and has a big and fast growing client base.

They could then just offer Iovine an executive rol without buying Beats.
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Old May 23, 2014, 08:13 PM   #19
Supra Mac
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The video: "Beats baby! We livin' the stereotype!"
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Old May 23, 2014, 08:14 PM   #20
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Quote:
Originally Posted by saggsy View Post
Read a fair bit about this potential acquisition but that was the first time I'd seen the Dre video.

If the deal wasn't sealed prior to him doing the YouTube video I think he's just shot him self in the foot with an AK.

Until the check is in the bank it's not your money - I thought he'd be a bit more business savvy than that, obviously not.

Apple does need to 'acquire' Jimmy Iovine. He is where it's at when it comes to taking the pragmatic approach to the way the music industry has been and is heading. Not to mention he has the cred in the industry and the smarts to make the negotiations.

I could see Iovine on the executive team as "iTunes Manager" or something along those lines.

Dre, I can't see being part of the Apple executive/corporate environment.

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Can't take the hood out of a thug.

I hope Apple nixes the deal and then Dre gets his @$$ handed to him by the BEATS board and management.

Apple should just hire Iovine and just forget the rest of BEATS.
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Old May 23, 2014, 08:15 PM   #21
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Do not anger the Apple, DUH!!!



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Old May 23, 2014, 08:16 PM   #22
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Really, this is why Apple probably should stick to their usual strategy of buying up much smaller companies. It makes transitions so much easier.

I can certainly understand why Apple may have simply changed their minds, after the leak from (the frankly amateurs at) Beats, and all the negative press. I'm sure in any sort of negotiations there are NDAs, and if Apple can't trust their potential acquisitions to stay quiet during negotiation, how can Apple trust them to stay quiet once they're part of Apple?

I've personally never really understood why Apple would want to buy them, but I wasn't going to really say they shouldn't do it until after I saw the explanation for it from Apple itself. Apple does all sorts of things that don't make any sense until later. I was prepared to just trust Apple's decision making here, and wait to see how things turned out before judging. I've never understood why this was such the big story it's become, though. News has been slow out of Apple, since there's been virtually no leaks in quite some time, but even still. Is it just because there's a famous rapper involved?
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Old May 23, 2014, 08:17 PM   #23
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Apples racist!!!
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Old May 23, 2014, 08:17 PM   #24
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You mean i'm not getting mfing urban cultured?
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Old May 23, 2014, 08:18 PM   #25
SoAnyway
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Well it didn't take long for the racists comments to be posted.

Grow up people.
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