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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.

Couldn't have said it better myself - why are the majority of people on here so concerned about the gaudy headphones? Seems pretty straightforward to me - and I like it.
 
Perhaps they're acquiring certain patents.

It's an ugly product. Why would Apple's artists and engineers need them?
 
This made me sick to my stomach. I REALLY don't think this is true… waaaaaaaay too much money for a junk brand. Apple knows better than to throw away that kind of cash. They didn't buy Waze for 1B, no way they buy this for 3.2.

There's got to be something worthwhile here and it CAN'T be the headphones. Sure there are worse sounding ones out there but worse value? Not likely.

I'm guessing Beats radio is what they want. They want the licensing arrangements. Maybe the connections in the music industry. iTunes itself is such a big business that even slightly better terms and way to compete with Spotify would be worth maybe that much.
 
People may not like Bose's acoustics, but their noise canceling is pretty excellent. This whole idea got me thinking of the iPhone using noise canceling to hear better while on the phone in a noisy place. That would be nice.

Again, I understand this is pretty off topic.

Apple bought much more advanced technology for less than 500 million.
 
No way Apple is paying that much for their streaming radio service, I doubt Apple wants to get in on the headphone business. Just can't see this one happening.
 
There HAS to be something that's not obvious here.

To think otherwise would be to let the idea slip into the head that perhaps, just perhaps, Apple actually has jumped the shark. Or that iChan is having his usual negative impact.
 
Can Beats service handle a billion of costumers (iPhone+iPad+Mac+PC)?

Does it do anything worthwhile of acquiring?

Then...

Yes, the streaming service is actually quite excellent. The central pillar of the service is that real humans curate and create great playlists and experiences for customers to interact with. This intersection of technology and liberal arts (sound familiar?) is right in Apple's wheelhouse.
 
If this deal goes through, I think it will work out very well for apple. The executive headphones always reminded me of something apple would produce. As far as sound, that's a matter of opinion. I personally love the sound of beats headphones. I love apple but I believe SOME people buy apple for the same reason they buy beats headphones. I think this will be a great acquisition.
 
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HP with *Apple* built in

Wonder what would happen to all the laptops and Phones etc., etc. with beats built in. Haha how weird would that be? HP paying Apple for laptop speakers. :eek:
 
Wow

Wow. If this happens, I'm going to say this is the risk of leaving Apple with way too much cash on its hands. Beats will either need to be scrapped or it will continue to exist as a brand dilution. Everyone who knows the history of Beats knows that this a somewhat shady company who's product is somewhat of a rip off for its customers. And frankly their customers are generally kids or young adults who don't even have that much money to rip off.

The music and software aspects of the company can't possibly be so advanced as to be worth much. The hardware would probably take Apple's engineers just a few months to "beat" handily.
 
I believe Apple and Beats have a lot in common and thus it doesn't surprise me at all.

Because Beats is such a well recognised brand these days, I see it as a great way to enter into the music streaming/headphone business (if that's what they want to do)

It doesn't matter how many people dislike Beats headphones. People still know what the little "b" means and people will still buy them.
 
Has anyone at Apple actually listened to a pair of Beats? They are utter crap! I can understand the strategic decision to buy the music services to boost iTunes, but really I would have bought Spotify instead rather than be lumbered with some w*nk headphones as part of the deal.
 
According to some Apple haters:

"The two companies with the most overpriced products in the world will now unite as one."

:D

Seriously though, I hope Apple does not go through this. Beats is a terrible company, their headphones suck and they rely on blind hype and the "cool factor" in order to sell their products.
 
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