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Apple in Talks to Acquire Beats Electronics for $3.2 Billion [Updated]
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All about streaming
Considering Spotify's last financing round I believe in November gave the company a $4 billion pre-money valuation and recent IPO discussions are in the $6 to $8 bin range, $3.2 billion doesn't seem that ridonkulous.
What is says to me is that a) Apple knows that streaming is the future and that the current iTunes purchase model is dated b) that Apple is having a hard time quickly/efficiently getting a solid streaming service to market, and c) the executive team believes the Beats Audio streaming service is the quickest, most cost-efficient way to enter this market. Internal financial analysis probably takes into account the advantages a combination with Apple would bring, such as the hundreds of millions of captive iTunes accounts--mgmt probably has models showing they're getting a bargain long-term assuming they can leverage the iTunes customer base and Apple's other global advantages.
Considering Spotify's last financing round I believe in November gave the company a $4 billion pre-money valuation and recent IPO discussions are in the $6 to $8 bin range, $3.2 billion doesn't seem that ridonkulous.
What is says to me is that a) Apple knows that streaming is the future and that the current iTunes purchase model is dated b) that Apple is having a hard time quickly/efficiently getting a solid streaming service to market, and c) the executive team believes the Beats Audio streaming service is the quickest, most cost-efficient way to enter this market. Internal financial analysis probably takes into account the advantages a combination with Apple would bring, such as the hundreds of millions of captive iTunes accounts--mgmt probably has models showing they're getting a bargain long-term assuming they can leverage the iTunes customer base and Apple's other global advantages.
Most people who hate on Bose can't afford them or they here this bandwagon about how bad they are. Now, I'm not saying you are in that boat, just saying. I've owned many Bose, and I must say that for me, the sound quality has been great, but the build quality, not so much. I've had a few PC speakers (not cheap) die on me. I've also had Harman Kardon, and I really like those, but there were a bit too noisy for me on low volume. I've heard great things about Bowers & Wilkins and that will probably be my next set.
The headphones are a very small part of the $3.2 billion.
The real purpose of this acquisition is to get Dr. Dre on the Apple executive team. If he can make a line of crappy headphones seem cool, imagine what he could do for the iWatch.
By the time Apple, Facebook and Google are done buying up as much of the competition as possible there really won't be any competition.
If aluminum Mac laptops at Starbucks have a classy air to them (and they definitely do) some guy walking down the street with his pants halfway to his knees wearing Beats has the opposite look. There is a name for those kind of headphones that is impolite and in some cases unfair.
If aluminum Mac laptops at Starbucks have a classy air to them (and they definitely do) some guy walking down the street with his pants halfway to his knees wearing Beats has the opposite look. There is a name for those kind of headphones that is impolite and in some cases unfair.
Very surprised at both the sum and the "brand" Apple is supposedly buying.
I sincerely hope that Apple has something big in the works that none of us know about for this deal to make sense.
I sincerely hope that Apple has something big in the works that none of us know about for this deal to make sense.
Could care less, I never use stock ear buds nor streaming services. Btw the EarPods blow many of the cheap headphones out there so I don't think that Apple is after the beats headphone business.
The streaming service could be a good purchase for Apple. And the other brands loosing the beats branding can also be good.
The streaming service could be a good purchase for Apple. And the other brands loosing the beats branding can also be good.
A few years ago it was cool to own Beats. In the MR world, it's cool to own anything but Beats. I've never owned the headphones but I do have the "Pill" bluetooth speaker and it's really not that bad. Better than anything else I've heard that's not professional grade. And I'm sorry they do look nice at the very least. All I'm seeing here are angry commenters whose mothers probably bought them the wrong headphones last Christmas and have been bitter ever since.
Clearly they did it because they were preparing for the time when Apple got into the business. I hear that's the only reason they do anything.
LOL
And I thought the last post on front page was winning the most ridiculous post of the year. I was wrong.
And I thought the last post on front page was winning the most ridiculous post of the year. I was wrong.