Apple's Acquisition of Beats Could Be Delayed Because of Valuation, Roles, and More

[bretm]

Just watched the video. If the Apple family is worried about what they saw, then I really wonder how they think a professional rapper might celebrate a billion plus dollar deal? I've celebrated the closing of much smaller deals in much more wild fashion than a few boasts and claims of knocking back some Heinekens. But I'm a reasonable and prudent guy who puts in a hard days work and gets results. But at parties, I party. This was a video from a party.

If you want the cred of folks like this, you have to understand the actions and behavior they will bring. In fact, they have to continue to exhibit certain behavior in order to maintain the very cred that you want to be associated with. Would Paris Hilton have become a an international celebrity if she had acted reasonable and prudent every day? Celebrities need to add buzz in order to maintain their currency. This was a modest bit of boasting. Nothing to see here in my opinion.

Probably plenty of reasons not to spend $3.2 billion on Beats. But Dr. Dre boasting about a legitimate and impressive milestone and using some swear words is not a good reason to not do a deal.

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But do you cancel just on principal? If the counterparty is leaking in order to get a competing offer, that might be unfair. So you cancel. Or if they are leaking and thereby giving advance notice to your competitors, that might be a problem. But I don't think you cancel a deal just based on principal. Not if there are billions of dollars at stake. And Apple wouldn't do a deal of this size if they didn't think they would make at least a billion in profit in the next few years. Anything less than that would make the deal not worth the money combined with headache.

Principle. Principle. They aren't the head of your high school.

I can think of no better reason to cancel the deal. Or to renegotiate at least. Can't keep your mouth shut? I think we'll pass. Dre has let on that the deal is too ridiculously good to be true. He's shown his hand before the game is settled. They're in renegotiations right now. Less money, no Dre. Sorry Jimmy, we're backing out because if your buddy. We'll give you X and we don't want Dre. Take it or leave it.

 

[rp2011]

loose lips sink ships. Isn't it funny a ship that leaks from the top?

 

[Wide opeN]

I didn't think that video Dre made would help the negotiations. It came off very smug and I'm sure Tim Cook didn't like it one bit.

Unfortunately as a black man, the same generation (or in between) Tyreese and Dre; THAT VIDEO SET US BACK 200 YEARS... REAL TALK... what dumb asses!!!

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Until the check is in the bank it's not your money - I thought he'd be a bit more business savvy than that, obviously not.

Dre, I can't see being part of the Apple executive/corporate environment.

As sad as these comments make me, I find them to be true #; perhaps Biggie and Puffy put it best "bad boys move in silence".

SMDH!!! #

 

[vpndev]

leaks ??

loose lips sink ships. Isn't it funny a ship that leaks from the top?

Has there been ANY leak - from Apple ??

It's three weeks on and there has been nothing that I have heard - official or otherwise. I don't know if that's a "message" - it might be.

 

[Jett0516]

Get it done Timmy!

 

[MacVista]

What would Apple be if it weren't for MacRumors commentators

 

[QCassidy352]

I think Apple will soon change significantly in size and market cap with the intro of mobile payments, wearables and TV etc...

These are not just simple additions to the product line, they are big additions that will change the company significantly. If these things alone succeed globally, Apple could double in size and market cap.

Time will tell.

OR they could become a company that tries to do everything and ends up doing nothing particularly well.

 

[fumi2014]

The current situation sounds very much like this from a few years ago.

http://venturebeat.com/2010/01/27/mcgraw-ipad/

 

[vpndev]

celebration

Just watched the video. If the Apple family is worried about what they saw, then I really wonder how they think a professional rapper might celebrate a billion plus dollar deal? I've celebrated the closing of much smaller deals in much more wild fashion than a few boasts and claims of knocking back some Heinekens. But I'm a reasonable and prudent guy who puts in a hard days work and gets results. But at parties, I party.

You just don't understand Apple. Apple does not work in the way your describe. When the deal is done and the ink is on the contract, it's done. Until then, it's not done.

And even then - let Apple make the announcement. The video makes it very clear that he doesn't grok Apple.

 

[Enabledobject]

I didn't think that video Dre made would help the negotiations. It came off very smug and I'm sure Tim Cook didn't like it one bit.

Yeah I had the same feeling. I knew they weren't going to like the video in Cupertino.

 

[Jimmy James]

The real problems began when they learned that Dr. Dre doesn't actually have a Ph.D.

 

[gavroche]

These leaks were all to set up Samsung.

Step One: Leak that Apple is looking to buy Beats for $3B

Step Two: Samsung, seeing Apple's interest, rushes to offer and buy Beats for $4B

Step Three: Laugh at Samsung

 

[EnderTW]

Where are all the Beats' acquisition supporters?

That video shows exactly why Steve Jobs would not have bothered with that company.

 

[JGIGS]

Seemed logical to me its always been about getting a locked in rate for a subscription service.

If apple really wanted to go deeper into headphones they could have just done their R&D and actually make better headphones than Beats.

Guess we'll find out

 

[sualpine]

Maybe we'll finally get Detox now.

 

[Benjamins]

I see beats is still trying to sell itself to some rich victim.

 

[icolove]

Apple continues down the road of mediocrity and quite frankly being lame.

 

[Sublime]

Ati

You don't fracking leak.


http://daringfireball.net/linked/2014/05/23/ati

 

[Benjamins]

Seemed logical to me its always been about getting a locked in rate for a subscription service.

If apple really wanted to go deeper into headphones they could have just done their R&D and actually make better headphones than Beats.

Guess we'll find out

Lol 3 billion to get lock in rate that is up for renegotiation in a couple of years?

People at apple probably doesn't know how to use a calculator.

 

[omgwut]

From at least a negotiation standpoint that video of Dre & Tyrese would definitely have made me do a double take if I were on Apple's side of these acquisition talks. Are we really getting the deal that we think we are if they are already popping bottles and gloating about being billionaires before the papers are even signed? It just comes off crass at the worst.

 

[cherishzm]

That is all I have to say

Image

Genius

 

[Sublime]

From at least a negotiation standpoint that video of Dre & Tyrese would definitely have made me do a double take if I were on Apple's side of these acquisition talks. Are we really getting the deal that we think we are if they are already popping bottles and gloating about being billionaires before the papers are even signed? It just comes off crass at the worst.

Right now Beats is faddy poison, hipster douche ****.

 

[HiRez]

Sounds like something that just isn't meant to happen.

 

[Sublime]

Dre has been out of the hood for a while. He's been very wealthy and he's mostly been out of sight for the past several years only coming out for new music, promotion and production for his artists. Every artist part of his company that has released albums has pretty much achieved multiplatinum status. Why do people only 'thug' to describe the actions of minorities? How can you even call him a thug when he's latest actions in the news pretty much consists of his successes?

Like Chris Rock says:

"There's a lot of racism going on. Who's more racist, black people or white people? It's black people! You know why? Because we hate black people too! Everything white people don't like about black people, black people really don't like about black people, and there's two sides, there's black people and there's niggas. The niggas have got to go. You can't have **** when you around niggas, you can't have ****. You can't have no big screen TV! You can have it, but you better move it in at 3 in the morning. Paint it white, hope niggas think it's a bassinet. Can't have **** in your house! Why?! Because niggas will break into your house. Niggas that live next door to you break into your house, come over the next day and go, "I heard you got robbed." *****, you know you robbed me. You didn't see **** 'cause you was doing ****! You can't go see a movie, you know why? 'Cause niggas is shooting at the screen, "This movie's so good I gotta bust a cap in here!" You know the worst thing about niggas? Niggas always want credit for some **** they supposed to do. A ***** will brag about some **** a normal man just does. A ***** will say some **** like, "I take care of my kids." You're supposed to, you dumb ****************! What kind of ignorant **** is that? "I ain't never been to jail!" What do you want, a cookie?! You're not supposed to go to jail, you low-expectation-having ****************!"

 

[HiRez]

These leaks were all to set up Samsung.

Step One: Leak that Apple is looking to buy Beats for $3B

Step Two: Samsung, seeing Apple's interest, rushes to offer and buy Beats for $4B

Step Three: Laugh at Samsung

I was thinking the same thing, that would be hilarious.