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

[Internaut]

Don't consider them to be great products based on personal use, or don't like them because big black athletes customize them and wear them during pregame warmups to listen to....GASP....RAP music. ? Guessing the latter for a lot of commenters here.

Alternatively, don't consider them to be great products because they're not all that great. I almost bought a set, then read some reviews; saved myself some money!

 

[Xenc]

That video cost $200 million Tyrese!

 

[MellowFuzz]

Dre appears on stage and cries out "I got your money *******! West Coast! Watts! Compton! For real" So Apple.

 

[attila]

I was hoping they reduced it to $3 - that's what Beats is worth.

 

[Steve121178]

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

Err, it's still $200m. Apple would go the extra yard to save just £100k. Some of you severely underestimate the control major corporations have over their finances.

My company makes $13bn annually, but as an example I still have to get approval for the purchase of a new monitor or a plane/rail ticket.

 

[BrandoFiasco]

Should of bought Spotify. Beats headphones are garbage. Used for 3 days while freelancing at an entertainment company before switching to my own Bose headphones. As a media professional, Apple is concerning me.

 

[attila]

Great news.
Apple sells all these music devices but don't sell speakers or quality headphones.
Why not have a lineup of quality speakers?
Brilliant and they get Dr. Dre and millions of his fans.

Next Apple TV & iWatch to tie it all together with the expected home automation setup.

But Beats aren't quality. They are amongst the worst speakers, sound cards and headphones on the market! They only look "good", thus incredibly overpriced.

 

[SMIDG3T]

Only $3 billion now? It that all?

 

[Switchback666]

But Beats aren't quality. They are amongst the worst speakers, sound cards and headphones on the market! They only look "good", thus incredibly overpriced.

The worst ? have you even used one ? You can say they are overpriced compared to other cheaper offerings at the same level but to say they are the worst and crap just makes you look like internet parrot; overpriced yes but bad/crap they are far from it.

 

[H.Finch]

I have a feeling they took 200 Mil off because Dre didn't keep his mouth shut... I bet they knew all the numbers going into negotiations... its the 1st thing you ask for...

Remember, people talking about deals with Apple before Apple makes them official is something Apple really hates... They have actually cut people out of keynotes for that and stuff...

 

[Rogifan]

Who cares if Beats are good headphones or not. Why does Apple need to be in the "premium" headphone business? Is that some thing that gets anyone excited?

 

[OllyW]

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

The price still seems to be high.

HTC sold back their final 25% stake in the company for only $265m last year, I wonder why the value of the company has trebled in the last 8 months?

 

[0098386]

Is it because he's black? What's the hate for?

You're seriously going for that. Really?

 

[attila]

Apple has been too busy listening to exaggerated bass to put effort in their company vision.

 

[Mr. Gates]

The worst ? have you even used one ? You can say they are overpriced compared to other cheaper offerings at the same level but to say they are the worst and crap just makes you look like internet parrot; overpriced yes but bad/crap they are far from it.

But Beats aren't quality. They are amongst the worst speakers, sound cards and headphones on the market! They only look "good", thus incredibly overpriced.

No, he's right.

Beats are crap.

Also, this rumor still seems like BS to me

 

[maflynn]

3 Billion dollars - that's absurd. I still don't get this acquisition. I think they can use those billions of dollars in better ways.

 

[osofast240sx]

But Beats aren't quality. They are amongst the worst speakers, sound cards and headphones on the market! They only look "good", thus incredibly overpriced.

Beats has a awesome flagship headphone that is just as good as the B&W P7 and will blow away the BO headphone(which is was extremely disappointed with)

 

[Hurda]

Replace <crickets> with <silence, followed by a lone person yelling "Morons!">

And another going "I'm rich, biatch".

 

[musika]

How can they do this after that video leaked? Such an embarrassment.

 

[Switchback666]

No, he's right.

Beats are crap.

Sure

 

[Bug-Creator]

But Beats aren't quality. They are amongst the worst speakers, sound cards and headphones on the market! They only look "good", thus incredibly overpriced.

A perfect fit than ....

 

[mccldwll]

3 Billion dollars - that's absurd. I still don't get this acquisition. I think they can use those billions of dollars in better ways.

"Better"? That's comparative. However, you've just said that you "don't get this acquisition" so what is your base for comparison?
No one here knows if a deal is going through or not, and if it is, why a deal might be going through; however, a very high percentage of these nonplayers claims to know better than the Apple exec team, which actually knows what is going on, how to run a $500+Bn company. Unreal.

 

[OllyW]

Moderator note:

A number of off-topic posts have been deleted because the thread was being derailed.

Please keep the discussion on-topic.

 

[Digital Skunk]

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.

I am SO glad that you aren't running Apple.

You'd have them giving rMBPs away for free.

I am sure the many years of experience Tim Cook has trumps anything you could ever come up with on a rumor mill forum.

A perfect fit than ....

Seconded!

Most people's complaints are about how they aren't good headphones. The one person giving any real facts is being ignored, and everyone is forgetting that Apple and Beats are a match made in heaven if you only consider their headphones overpriced fashion statements crap.




p.s. I hope this deal goes through, just so it'll peeve folks off.

 

[TallManNY]

Very general rule of thumb: about 2-3 times revenues.

Apparently, Beats booked $1.3B in 2013. $1.3B times 2 = $2.6B and times 3 = $3.9B. At $3B, Apple is much closer to the 2X than the 3X.

Very crude analysis. Also one can guess that Beats has really high profit margins because of how overpriced their headsets are. They might have pulled in $400 million in profit on the headset division of their sales. If they can keep that up. And maybe even improve it once Apple starts helping them with manufacturing, product placement, and design, then Apple could get a very nice return at this price point. There really doesn't need to be any IP or value to the streaming services to justify this price.

Or Beats could be a fad and people could stop buying their overpriced and underperforming headphones.