Apple to Announce Beats Acquisition This Week, Drops Price to $3 Billion

Discussion in 'MacRumors.com News Discussion' started by MacRumors, May 27, 2014.

  1. macrumors bot

    MacRumors

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    #1
    [​IMG]


    Apple's rumored acquisition of Beats will indeed happen, just for a slightly reduced fee, according to a report from the New York Post this evening. The acquisition, which was originally reported to be roughly $3.2 billion for both Beats companies -- the headphone and consumer electronics division as well as the streaming music service -- will now happen at $3 billion.

    Since the acquisition was originally reported on May 8, Spotify -- the leading player in the subscription music field -- announced that it had 10 million paying subscribers, and this could have given Apple additional negotiating leverage.

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    The paper notes that both Jimmy Iovine and fellow Beats co-founder Dr. Dre are expected to attend Apple's Worldwide Developer Conference next week. Dre is expected to net somewhere around $750 million from the sale as he currently owns approximately 25 percent of the company.

    Article Link: Apple to Announce Beats Acquisition This Week, Drops Price to $3 Billion
     
  2. macrumors 65816

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    Der Wald
    #2
    Pity...was hoping the deal had fallen thru.
     
  3. macrumors 65816

    Joined:
    Jan 7, 2014
    #3
    I was under the impression that people were quoting 3b and 3.2b like they were the same thing.
     
  4. Guest

    Sky Blue

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    #4
    Hope they don't waste time on this at the WWDC Keynote.
     
  5. macrumors 68030

    spaceballl

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    Location:
    Silicon Valley
    #5
    My hopes for WWDC...

    1) Dr. Dre comes out on stage.

    2) Dr. Dre performs a closing musical act, dropping one of his classics and then something new from the Detox album... give it to us, Dre!!!
     
  6. macrumors G5

    Rogifan

    Joined:
    Nov 14, 2011
    #6
    So basically Apple just wants the revenue stream from overpriced headphones. Seriously Tim? :rolleyes:
     
  7. macrumors 6502a

    Joined:
    Mar 8, 2012
    #7
    Tim Cook: "One more thing. We bought Beats!"

    <crickets>
     
  8. macrumors G5

    Rogifan

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    #8
    I'd rather people booed.
     
  9. Editor emeritus

    longofest

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    #9
    Replace <crickets> with <silence, followed by a lone person yelling "Morons!">
     
  10. macrumors 65816

    Tankmaze

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    Mar 7, 2012
    #10
    So its not finalized yet, 200 million is alot of money.
     
  11. macrumors 603

    thekev

    Joined:
    Aug 5, 2010
    #11
    You're a bit too obsessed with what is still just speculation.
     
  12. macrumors 6502

    Joined:
    Jun 13, 2011
    #12
    That's still 3 billions too many.
     
  13. macrumors 68020

    flat five

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    #13
    what one billion dollars looks like:

    [​IMG]
     
  14. macrumors 65816

    DTphonehome

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    Location:
    NYC
    #14
    Well NOW this deal makes perfect sense... :rolleyes:
     
  15. macrumors G5

    Rogifan

    Joined:
    Nov 14, 2011
    #15
    But all the speculation points to the same thing. I have yet to see one of these stories mention any amazing tech/IP that Apple is after. What's really scary is this part from the NY Post article:

    So Apple just begun doing "due diligence" and dug up some unsettling information but are still going to announce the acquisition this week? WTF?!?
     
  16. macrumors 6502a

    yeah

    Joined:
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    #16
    To those who are complaining that $200 million is a lot of money: Yes, it is, but to Apple, $200 million is barely anything.

    :eek:
     
  17. macrumors 6502a

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    #17
    $1.3 billion in revenue in 2013? That's pretty impressive.
     
  18. macrumors 65816

    rhinosrcool

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    MN
    #18
    If this goes down, Dre will not net $750 million; gross, maybe.;)
     
  19. macrumors 601

    sammich

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    #19
    Execs: 'We need something to boost our Music division. What should we do?'.
    Tim: 'Beats me.'

    (I haven't read that from anywhere, but I doubt I'm the first to make that up).
     
  20. macrumors 68020

    flat five

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    Location:
    newyorkcity
    #20
    how many more headphones do you think will sell if they're apple&beats branded vs. beats alone?

    even if nothing changed from the current iteration of beats?.. once they go through the apple engineers for a couple iterations, i'd be willing to be that even the more vocal naysayers in the threads will eventually buy a set.
     
  21. macrumors 68000

    richwoodrocket

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    #21
    Would make a great announcement for WWDC.
     
  22. macrumors 6502a

    ZacNicholson

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    Indiana
    #22
    Someone explain why so many people hate this deal on this site? Who cares what apple spends it's money on as long as it keeps making great products.
     
  23. macrumors member

    One Bad Duck

    Joined:
    Sep 18, 2005
    #23
    Valuation

    Apple bought Beats for:

    1: To help restore their "cool" factor in Music. Something they lost dramatically when they started Ping.

    2: A kickstart in Music streaming. aka. the death of music buying individual tracks

    3: Acqui-hire of Iovine and Dre to sway TV cable companies to bring iTV to market.

    4: They get the content licences for streaming from Beats. They don't if they were to purchase spotify.

    5: Beats are a profitable company
     
  24. macrumors G5

    Rogifan

    Joined:
    Nov 14, 2011
    #24
    Who cares? Apple has more important things to worry about than headphones. If Apple doesn't have any idea how else to spend $3 billion I'll give them an idea: more iCloud storage at a cheaper price. Microsoft gives you 7GB cloud storage for free. I just got charged $20 for 10GB iCloud storage.
     
  25. macrumors 6502a

    JayCee842

    Joined:
    Jan 21, 2013
    #25
    I'm interested in knowing how they value these companies, namely Beats, to come up with the price
     

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