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Apple Announces $3 Billion Beats Acquisition, Jimmy Iovine and Dr. Dre Joining the Company

D.T. said:
So _assuming_ per the Wiki that he does in fact own 15%, and that the cash portion of the deal is $2.6B ($3B - $400M), that 15% would be worth $390M in cash, and another $60M in stock.

So 390 + 60 + 550 = $1B :D
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That $550M number already includes what his ownership was in Beats (at the lower valuation of $2B). You are double counting that.
 
Wow, everyone take a chill pill. Even if Beats was a completely worthless company, $3 billion isn't really that much money for Apple. In fact, as I read somewhere, they've pretty much made that much in cash since the rumor first came out.

Second of all, how about we save the judgment for the future when we see what Apple does with this acquisition?
 
So what gives with this Dre dude being called a Dr? What's his education level?

I have a Ph.D and peeps don't call me Dr.
 
Boomish69 said:
Tim C is a fool.. what joke this is, Dr Dre laughing all the way to the bank..Apple software has already hit rock bottom now so will it's hardware. see ya Apple you suckers.
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Why is it only Dre who is laughing all the way to the bank? And why is there only resentment for him? Iovine didn't make just as much if not more? I don't see anything close to this level of resentment for him. Is he more deserving?
 
Squeak825 said:
That $550M number already includes what his ownership was in Beats (at the lower valuation of $2B). You are double counting that.
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Oh yeah, that’s probably the case, good catch!

Per that Forbes link above I believe it’s all factored in correctly (thanks Dr. dmax35*):

By similar logic, the deal would boost Dr. Dre’s net worth from a recent $550 million to somewhere between $700 million and $800 million, making him hip-hop’s richest man.
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dmax35 said:
I have a Ph.D and peeps don't call me Dr.
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* We do now.
 
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not a fan

i'm not really a fan of this. I don't really think the beats product are that great. Form over function IMHO having tested many devices and compared to either cheaper to same price products.

I would have rather seen them buy aliph or something more worthy of the money.

3B is a lot of their free cash (in the USA) so domestic acquisitions are cut down considerably with this deal.
 
This $3B is the real cost of losing Steve, the one man who pushed Apple's music business with passion and vision. Tim Cook is always an operation guy. I don't think he likes music very much.
 
I'm extremely excited for Dr. Dre. Talk about coming a long way.

I find it hilarious that so many here are saying this is the worst thing Apple has ever done/could do/etc... I also find it great that it pisses so many people off at the same time.
 
Looks like they have pulled the App now. At least in the UK. Or perhaps it was never available here.

Besides. I'll stick to Spotify thanks.
 
flux73 said:
Why is it only Dre who is laughing all the way to the bank? And why is there only resentment for him? Iovine didn't make just as much if not more? I don't see anything close to this level of resentment for him. Is he more deserving?
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You know why. I'm honestly surprised at the racial undertones in reaction to this announcement especially by a forum of Apple fans in 2014. For a minute I thought I was reading the Yahoo News comments section.
 
For all the nay-sayers...

After a few weeks of people ranting about how the sky is going to fall because Apple may buy Beats, well, the sky hasn't fallen and, most likely, will not fall in the future. Just because we, the uninformed, non-insiders, don't fully understand the makings and rationale of a $3B deal, doesn't mean it doesn't make good business sense in Apple's confidential business roadmap.

As for the quote on youtube a couple of weeks ago from Dr. Dre's posse about him being the FIRST HIP HOP billionaire, it is now 100% accurate:
Dr. Dre's 2013 net worth >$550M (according ot Forbes) + Beats acquisition $750M = $1.35B. Yes, Dr. Dre IS now the first HIP HOP Billionaire. And like Jobs and Gates, he never graduated from college!

:cool:
 
Apple always did make crap headphones, so.

Seriously though, I can't find myself getting remotely excited about this. I wish they'd just created an iTunes Stream, or something in which you just open the music app on your phone or iTunes on Mac, and had entry where you stream all the music available to buy on iTunes.

Can't see me ever jumping from Spotify to Beats streaming server. Spotify is pretty much perfectly what I want now, I love its new playlist sections based on mood and it has a wide range of pretty much everything I search for. For me there are other services like Rdio which id rather be on than Beats too.

So meh, I bet 15 mins of the WWDC keynote is wasted on this announcement now.
 
OS X Dude said:
So, Dre isn't really a billionaire like he said in his now infamous video, then? Another article on this site suggests he'll cop for $750m from this deal through his stake in the company, and I find it hard to believe he's presently worth the additional $250m.

OK, he'll never have money worries - but still, false advertising! :p
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I'd be surprised if he wasn't worth at least a billion after the deal. He's made some decent money over his career.
 
CEmajr said:
You know why. I'm honestly surprised at the racial undertones in reaction to this announcement especially by a forum of Apple fans in 2014. For a minute I thought I was reading the Yahoo News comments section.
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Hip Hop and the Tech Sector just don't mix.

Wait a minute ...


:D:D:D:D:D
 
And people wonder why the world makes fun of majority of the Apple 'faithful'.

Just read this and the other beats thread to get an idea. Cringe-worthy would be an understatement.

Many of you are clueless, elitist, hypocritical, racist, pontificating snobs.

But please keep typing. At the very least, it's providing comedy gold. Already bookmarked this thread for giggles.
 
Does anyone know how long Timmy will be CEO? Is he on a contract or something? I really hate his management style and the direction he's taking the company. I was just starting to like Apple and I'm gonna make the switch to iPhone 6 but then Timmy makes a stupid decision like this to ruin Apple's carefully crafted brand. I hope they don't put that stupid red beats logo on the back of iphone 6s and ipad air 2 :mad:
 
Google is innovating with SELF DRIVING cars, Google Glass, Google Fiber and a host of other projects.

What has Apple done lately?
  • Stupid looking trash can Mac Pro.
  • Making iOS7 harder to see and use with no benefits.
  • Leaving Maps still half baked.
  • Siri still says "I'm sorry but I can't take any requests now."
  • Releasing Mavericks, the buggiest OS ever and Finder still sucks.
  • Playing catch-up with a larger screen phone.

Cook and the rest of the brain dump can't seem to innovate or even polish what they have - the latter most likely because there's no money to be made in polishing an existing product. Even the cost cutting is obvious in the hardware.

It's clear they are turning Apple into a poseur fashion statement company. Apple is now in the business of creating superficial trends and not innovative trends.
 
Ryth said:
How long till the black community called Dre a sellout, uncle tom, etc?

You KNOW it's going to be coming.
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Nope.
Why because he made $700 million?
Clearly you don't understand black culture.

But....
I think it's the best deal Dre made in his life.
I think it's the worst deal Apple has made in recent history.
It's almost as bad as when Avid bought SoftImage from Microsoft.

SoftImage didn't pay for itself and neither will this for Apple.
 
haruhiko said:
This $3B is the real cost of losing Steve, the one man who pushed Apple's music business with passion and vision. Tim Cook is always an operation guy. I don't think he likes music very much.
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yes if steve jobs' was still alive, downloadable music would still be popular. god damn it tim! get it together!

3bn to replace steve jobs' is actually amazingly cheap.
 
Tim Cook is a penny pinching kind of person. He wouldn't spend three billion ( with the OK from the BOD ) for no reason.

I'd say let's sit back and see what Apple has to say about it next week.

Then make a judgement.
 
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