Apple's Acquisition of Beats Could Be Delayed Because of Valuation, Roles, and More

Discussion in ' News Discussion' started by MacRumors, May 23, 2014.

  1. macrumors bot


    Apr 12, 2001

    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.
    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
  2. macrumors 6502a

    Nov 20, 2012
    I can only hope that it's delayed indefinitely.
  3. macrumors regular

    Sep 10, 2009
    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).
  4. macrumors member

    Jul 18, 2007
    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?
  5. macrumors 601


    Jun 26, 2009
    long island NY
  6. macrumors member

    Jun 3, 2012
    Leave now while you still have the chance!!! It's way over priced
  7. macrumors newbie

    May 21, 2014
    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?
  8. troop231, May 23, 2014
    Last edited: May 23, 2014

    macrumors 603


    Jan 20, 2010
  9. AnalyzeThis, May 23, 2014
    Last edited: May 23, 2014

    macrumors 6502

    Sep 8, 2007
    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.
  10. Quu
    macrumors 68000


    Apr 2, 2007
    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.
  11. macrumors 68020

    Mr. Gates

    Jun 17, 2009
    --Redmond --------- ----------------Washington---
  12. macrumors regular

    Jun 15, 2010
    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.
  13. AngerDanger, May 23, 2014
    Last edited: May 24, 2014

    macrumors 68020


    Dec 9, 2008
    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.
  14. macrumors 6502


    May 13, 2012
    Six Rivers, CA
    One year from now:

    Apple still close to acquiring Beats Electronics, says analyst.:rolleyes:
  15. macrumors 65816


    Nov 24, 2010

    let the media backpedal begin. This was all ******** from the beginning.
  16. macrumors 6502a

    May 22, 2009
  17. macrumors newbie

    Jun 28, 2004
    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.

  18. macrumors 65816

    Aug 17, 2008
    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.
  19. macrumors regular

    Jan 5, 2012
    The video: "Beats baby! We livin' the stereotype!"
  20. macrumors 65816

    Apr 21, 2011
    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.
  21. macrumors 6502

    May 10, 2011
  22. macrumors 65816

    Apr 16, 2004
    Drifting through space in a broken escape pod
    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?
  23. Guest

    Aug 4, 2010
  24. macrumors 68000


    Nov 19, 2013
    You mean i'm not getting mfing urban cultured? :eek:
  25. macrumors 6502

    May 10, 2011
    Well it didn't take long for the racists comments to be posted. :rolleyes:

    Grow up people.

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