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Apple To Buy Vivendi's Music Division For $6 Billion

Re: Apple To Buy Vivendi's Music Division For $6 Billion

Originally posted by AlejandroGonzo
The LA Times reports Apple is in talks to buy Universal Music from parent company Vivendi, saying Jobs will become the most powerful man in the music industry.

http://www.latimes.com/business/la-fi-apple11apr11,1,6558114.story?coll=la-home-headlines
Click to expand...

If I remember right, apple has only 4 billion in cash reserves. Not that they'd buy it in cash, but it seems obvious that such a move would but a serious dent in apple's finances. Its a big gamble if they did go that route.

But it sure would be interesting if it happened. Personally I've been waiting for apple to absorb or create subsidiary companies that compliment their main business but isn't about software or computers. So I think something like this could be a good move. I don't know if this example is a good move, but moving outside the core business, without going into things they know nothing about, is going to be essential to apple's bottom line.
 
brought this up in the online music service thread too, didn't remember getting a response-

what about the deal with Apple Records?
 
I hope they won t do that! Who knows, if sales on the hardware go down, perhaps they will not be able to come in a bonus with it. I think they will make large losses with this service, as , none of the "music you have to pay for" services on the internet has survived, as there are still things like kaza, limewire and co aviable.
 
I don't believe it. Actually, I do. I believe it just as much as the idea that Apple had caused ThinkSecret to go offline. I believe it just as much as the iPod updates that were going to happen three months ago and the dual 970s that some people think are coming to the PowerBooks.

C'mon!!!!!

Dan
 
Random thoughts:

I think it's true that Steve Jobs loves music, and he must think he is a good executive in the creative fields (e.g. Apple itself, but especially Pixar).

However . . .

If Apple owns one of the big music companies, doesn't that make it harder to launch a music service that offers tunes from everyone, which it must to be successful?

And . . .

What would Tipper Gore's role be?
 
Digital Rights

The Register has a story about it. I agree with them that the whole 'digital rights managment' craze might be a huge opportunity for Apple if they play it right. I use both Macs and PCs (and actually like both), but if DRM is coming to the Windows platform (hardware & software) I will probably switch back to Macs only (that's how I started). I think nobody likes the idea that big corporations snoop around on their computer. If Apple plays up the privacy issue with just the right amount of paranoia I think they could do a switch campain that actually works.
 
very interesting. i really dont know what to believe, and i really dont care. seems like 6 billion is a hefty amount for a company with 4 billion. guess we will see. doest steve also have lots of personal cash from pixar and apple.

iJon
 
this thing is are they buying it for apple, universal is a huge company and could fit into every aspect of what apple is doing right now.

Universal does music and film, Apple could use this to get behind is upcoming music service and even push the industry with mpeg4. As it would play a massive role in it. And with this momentum it could ruin Microsofts relations with WMP9 and there anti DRM stance.

Then again could apple expand this into more than just film? FCP is already a big part of it, an with tools such as DVDSP and Shake, this could mean more and even more macs in the industry.

This would reflect good things for pixar, Apple wouldn't jump into this if it wasn't a good decision.
 
If anybody could pull this off, it'd be Apple. I have no doubt in my mind Steve would be able to make Internet music profitable because of his strong belief in consumer rights and hate towards DRM. Either way, we'll probably see this new music service soon. Apple owning the largest label out there would just be icing on the cake :D
 
Originally posted by mac15
this thing is are they buying it for apple, universal is a huge company and could fit into every aspect of what apple is doing right now.

Universal does music and film, Apple could use this to get behind is upcoming music service and even push the industry with mpeg4. As it would play a massive role in it. And with this momentum it could ruin Microsofts relations with WMP9 and there anti DRM stance.

Then again could apple expand this into more than just film? FCP is already a big part of it, an with tools such as DVDSP and Shake, this could mean more and even more macs in the industry.

This would reflect good things for pixar, Apple wouldn't jump into this if it wasn't a good decision.
Click to expand...


I think they are just looking to buy Universal Music Group, not Universal Films.


Lethal
 
I hope it wont materialize

1. It's a big risk to invest in ANY market going down despite the money and ideas, one has

2. There's no need to own a recording company to get the music to sell.

3. If it really happens, it shows that Apple has no ideas what to do with the money, they have in the business, they're really in - computers

4. It'd be stupid to put all the eggs in one basket - you risk eating Apple's profit and spending it on some music shop

5. It's stupid to put $6 billion depending on te success of the yet-to-be announced untested (market-wise) web-service.


The only positive thing is that the brand allows the company to du such things quite successfully. Sony did it and they're doing quite ok.
 
This could be

This could be one of the most interesting buys in the history of business. A computer hardware/software company buying a Music publishing company.

This could help shore up Apple profits through the sales of music and movies if they bought the movie part.
Transitioning from CDs to mp3 sales could help propel them further and beat the honking snot out of the other record companies. Apple has always wanted to be like Sony. They have their MP3 players. What other DLDs will be out to compete with Sony?
Adding music to their portfolio would bring them closer to being similar to the Sony giant.
 
Apple Records

I thought Apple Computer was sued years ago by Apple Records for copyright infringement, and that it was settled by Apple Computer agreeing never to go into the music biz.
 
Come on! Apple wants to be an AOL or Viacom or VivendiUniversal now?

None of those companies are making money and one is pretty much dead.

Not a very wise move I think.

Furthermore, Apple Computer would get slapped with a big lawsuit by Apple Records.....Sosumi!!

DriverDan, didn't see your post
 
If it happens, You can bet the bank that a lot more studios will run apple hardware and logic software. On the other hand this might further light a fire under Digidesigns ass. One thing apple must do to stay in the desktop market is get Pro Tools and Avid working a little quicker on their aoftware, not to mention Quark. Sure, we are getting the ports now, but these companies are so bloated ansd sure of themselves that they have no motivation. Apple owning Universal will give apple some more sway over digital media companies.
 
Re: Apple Records

Originally posted by DriverDan
I thought Apple Computer was sued years ago by Apple Records for copyright infringement, and that it was settled by Apple Computer agreeing never to go into the music biz.
Click to expand...

Yes, you are right. However, I am just guessing that it was a time frame that they could not enter them music group..or maybe under the Record Label "Apple". But UMG already exists, I don't think that kind of takeover would break the contract, but I could be wrong. Plus, I really don't think that Apple would know all the time that if they bought out UMG, that they would be breaking a contract.

edited for my stupidity
 
I don't know about this...

Thing that worries me is that Uncle Steve has never sold any thing cheap in his life, he's always cranked up the profit margin. Doesn't seem a good fit with online music sales to me.

And if you believe anything you read in the biographies around on Jobs, nobody thinks he is a savvy executive, least of all the Pixar people.

I guess there is a second thing that worries me...this is big AND it's risky...no good business man would go near it. It's big enough to ruin a company the size of Apple if it goes wrong.

I hope it's not true.
 
Originally posted by stefman
Come on! Apple wants to be an AOL or Viacom or VivendiUniversal now?

None of those companies are making money and one is pretty much dead.

Not a very wise move I think.

Furthermore, Apple Computer would get slapped with a big lawsuit by Apple Records.....Sosumi!!

DriverDan, didn't see your post
Click to expand...
Isn't apple records dead?
 
Maybe we'll eventually see music vending machines instead of large record shops. I heard a while back that in Japan you could co to such machines with a MiniDisc and purchase a single song and it would be recorded onto the MD. Anyone know if that is true? Maybe they said you bought the MD pre-recorded from the machine. I forget.
 
Re: I hope it wont materialize

Originally posted by ipiloot

4. It'd be stupid to put all the eggs in one basket - you risk eating Apple's profit and spending it on some music shop
Click to expand...

This isn't a music shop. It's Universal Records. The largest of all "music shops." :)

I don't necessarily think it's wise to do it, but it's not like Apple is throwing away $6B on an investment to only receive $0. Universal makes a LOT of money NOW.... which means immediate ROI. They'll expand the revenue by offering online distribution.

If Jobs can pull it off, it would be a major cash cow for Apple. I'm still hesitant to believe this, as many major papers have reported false rumors in the past-- such as Sony buying Apple. Or Disney. The list goes on.
 
This is an odd rumour

Why would Apple become a content provider? Their business is been computers, gadgets and software to use with computers. Music, movies, video games, etc are content and the formats they come on are compatible with our Macs. Downloading singles from the Net might be a good option but I suspect most people would still prefer to shop for their CDs. Same goes for movies and games.

I have my doubts about the validity of this story. Perhaps we can take it as an indicator that Apple will almost definitely provide a distribution service for iTunes users when the new iPods arrive (or soon after).
 
Re: Apple Records

Originally posted by DriverDan
I thought Apple Computer was sued years ago by Apple Records for copyright infringement, and that it was settled by Apple Computer agreeing never to go into the music biz.
Click to expand...

So far as I'm aware, this is true. However, it may be that this settlement had a limitation that would enable Apple to enter the music business after a certain amount of time. I'm also not sure about the financial situation of Apple records these days.
 
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