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

[Chupa Chupa]

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I totally agree but the people around them are the smart ones and that's who they take their advice from. But in this case Tim Cook has a very good track record and is a very smart man

Convince me Tim Cook has a good track record AS CEO at pushing the brand forward. So far I've mostly seen miscues in hiring Browett; bungled the Mansfield retirement; announcing a new iMac when he knew supply could not meet demand turning into an earnings debacle & his having to do a mea culpa; launching Maps before it was ready for prime time, also accompanied by a mea culpa.

I do not dispute Cook is intelligent & was great at his previous position at Apple. But I've yet to see a positive track record AS CEO as you suggest. But I'm open minded so please make your case.

 

[gr8hii]

Apple had interest in Beats. Beats wanted more money. Beats got a big head about it and leaked the deal thinking the "public" would force Apple into the hIgher price. It didn't work. Beats then leaked the "reasons to buy us" memos including the one about it being an effort to make Apple more "culturally aware." They then made the typical rich rapper video knowing full well how Tim Cook would feel about it. Problem is, now if cook backs out, it will be easy to label the reasons as being against the "culture" evident in the video, a culture that is very much associated with African-Americans.

Tim Cook just got strong armed. Welcome to the game.

 

[j-Phone]

Pop Culture...

Apple knows that the money is in the pop culture, but was not ready for the language of the pop culture.

I tell you what, if Apple backs out, Google would be more than happy to step in.

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Apple had interest in Beats. Beats wanted more money. Beats got a big head about it and leaked the deal thinking the "public" would force Apple into the hIgher price. It didn't work. Beats then leaked the "reasons to buy us" memos including the one about it being an effort to make Apple more "culturally aware." They then made the typical rich rapper video knowing full well how Tim Cook would feel about it. Problem is, now if cook backs out, it will be easy to label the reasons as being against the "culture" evident in the video, a culture that is very much associated with African-Americans.

Tim Cook just got strong armed. Welcome to the game.

Wow...never looked at it like that, but I think you hit the nail...!

 

[andiwm2003]

Yikes . This Beats deal has brought out all the DownLow Racists .

care to explain?

 

[racer1441]

This isn't going to happen. It's a garbage company. I wouldn't put it past the Beats ownership to have started the rumors just to keep their name in the news.

 

[Piggie]

It's always telling when you see the real person. Mr Beats in his vulgar video swearing to camera, bragging and saying this such as:

Sh-t and M-ther F-cker many many times

That's the REAL person right there exposed to everyone to see.
Not the act he and others put on wearing a suit trying to fit into a clean cut classy, tasteful business environment.

He could be white, black, any colour any race. That exhibition of the real person exposed is so far removed from Apple and say Jony Ive, Tim cook, or even the last Steve Jobs as you could ever possibly get even if you tried.

 

[satchmo]

While I'm sure Dr.Dre is an astute businessman, and had every reason to celebrate, you don't do it publicly on YouTube!

It's not an issue of race, but rather of passion. It reveals where his motivation lies...money. And while everyone wants to make money, it's not the reason you join Apple. And it's not the type of person Apple is looking for.

 

[AppleSauce007]

Apple had interest in Beats. Beats wanted more money. Beats got a big head about it and leaked the deal thinking the "public" would force Apple into the hIgher price. It didn't work. Beats then leaked the "reasons to buy us" memos including the one about it being an effort to make Apple more "culturally aware." They then made the typical rich rapper video knowing full well how Tim Cook would feel about it. Problem is, now if cook backs out, it will be easy to label the reasons as being against the "culture" evident in the video, a culture that is very much associated with African-Americans.

Tim Cook just got strong armed. Welcome to the game.

I think Beats founders have been friends with Apple leaders for years and they have been building what they advised Apple to build which Apple chose not to. Now Apple realizes that some of these ideas were not all bad.
Steve Jobs does not just pull anyone off of the street to include in his public presentations, he needed friends from all walks of life and backgrounds in order to succeed.
Remember that Apple was a dying company before iTunes and iPods and iPhones and iPads. People need to understand that there is a lot more behind the pretty iTunes button that play music that they don't see.

Steve Jobs understood that and I think Tim Cook does as well.

Here is a clip from 2003:
https://www.youtube.com/watch?v=4VVarJu4SWo

iTunes & iPhones changed Apple radically.
Apple is about to through a similar change with mobile payments and wearables and TV

 

[lolkthxbai]

All I have to say is... Heineken, really? What happened to the Cristal....????

 

[Andronicus]

We all know that Steve Jobs would have immediately canceled any in-progress deals if the other party leaked it. It happened a bunch of times, as I recall, over a bunch of deals and with companies a lot bigger than Beats.

Examples?

 

[Nunofaria21]

The longer this goes own, the less likely it seems. I still cannot see what Apple gain out of this deal that they couldn't do by themselves. Is the 'expertise' of Dre and Iovine worth that much?

Nope, I'm just guessing they're going to do this to have the ability to increase prices even more...

 

[TimWillz]

The video was disgraceful, I can't see Apple ever having someone like that representing the company thought a senior role.

 

[flatfoot99]

The video was disgraceful, I can't see Apple ever having someone like that representing the company thought a senior role.

Th funniest thing about the video was this is what they thought was appropriate to post on Facebook (this was not some hidden video that got leaked). I can only imagine what the unedited version looks like...

 

[AppleSauce007]

Th funniest thing about the video was this is what they thought was appropriate to post on Facebook (this was not some hidden video that got leaked). I can only imagine what the unedited version looks like...

Some of you guys need to grow up if you actually believe that past and present Apple leaders don't curse at parties. LOL

 

[thaifood]

Just because someone is an executive at a large corporation doesn't mean they have any clue as to what they're doing.

They have a hell of a better idea than any if us as to what the deal is, how it will integrate into their future plans and how much money to pay.

 

[alexgowers]

Apple run away.

These two guys are not your saviours and you can't justify the price no way. apple could make better headphones and a better streaming service.

Beats is a polarising brand and I HATE them like many others.

 

[flatfoot99]

Some of you guys need to grow up if you actually believe that past and present Apple leaders don't curse at parties. LOL

I'm sure they do, but most people wouldn't make a video of it and post it on Facebook before they even closed a billion dollar deal.

I feel bad for the folks here defending the video. N that, N this... a hint of west coast gang affiliation. Some of you actually believe this is normal behavior...

 

[kdarling]

I would love to hear the deals Jobs cancelled over leaks. Got any sources?

Examples?

ati

Yep, that was certainly a famous one.

Jobs was furious that they had leaked his surprise about three new Mac models. As CNET reported:

"Steve didn't care who was to blame," an ATI staffer said. "It leaked, and that was all he cared about. He was so upset, he wouldn't even directly talk to anyone at ATI. Everyone talked through mediators, and that made the whole thing just an even bigger mess."

... Jobs ordered all Radeon boards be pulled from Macintosh PCs in Apple's booth, removal of any mention of ATI products from his keynote address on Wednesday and the cancellation of a keynote demonstration of the new Radeon graphics chip.

Sources close to the situation tell MacCentral the ATI demonstration was to have taken place in the first 45 minutes of the keynote address and was to have included an ATI representative on stage to put the Radeon product through its paces.

MacCentral has confirmed that based on the configuration of certain models and their associated peripherals in Apple's Expo booth, early versions of Radeon graphics boards were removed from Power Mac G4 systems.

In addition, a Pricing and Configuration Reference Card being used by Apple-badged employees in the company's booth shows that while Apple was originally planning on offering the ATI Radeon graphics card as an "Option available at the Online Apple Store," its mention has been hand-scratched out. When asked why the ATI product reference was deleted, one Apple employee simply said, "Why do you think?"

 

[Benjamins]

I think Beats founders have been friends with Apple leaders for years and they have been building what they advised Apple to build which Apple chose not to. Now Apple realizes that some of these ideas were not all bad.
Steve Jobs does not just pull anyone off of the street to include in his public presentations, he needed friends from all walks of life and backgrounds in order to succeed.
Remember that Apple was a dying company before iTunes and iPods and iPhones and iPads. People need to understand that there is a lot more behind the pretty iTunes button that play music that they don't see.

Steve Jobs understood that and I think Tim Cook does as well.

Here is a clip from 2003:
https://www.youtube.com/watch?v=4VVarJu4SWo

iTunes & iPhones changed Apple radically.
Apple is about to through a similar change with mobile payments and wearables and TV

They advices apple to make headphones and speakers?

 

[rdlink]

I like gruber but there is zero chance the deal was scuttled because of the leak...

If you think a deal wouldn't have been killed, or at least greatly altered because of that video you're deluded.

The only difference between Apple under Cook and Apple under Jobs is that Jobs would have just brought the door down and walked away, with fire in his eyes and malice in his heart.

Cook, being the "pragmatist" would try to find a way to get what he saw as value in the first place, or most of it, anyway. And that would involve changing the terms and doing his best to minimize or eliminate this punk's role.

Don't kid yourself. That video has a huge potential to nix the deal.

 

[Carlanga]

If it was SJ on top then he prob would have cut off the deal completely after said video.

 

[IJ Reilly]

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.

On this, the issue would be that dropping the dime before it's official is to break one of Apple's cardinal rules. Agree with the policy or not, secrecy is a highly prized value at Apple. What we perhaps know now that we didn't before is that in this respect at least, nothing has changed at Apple under Tim Cook.

 

[thelookingglass]

It's always telling when you see the real person. Mr Beats in his vulgar video swearing to camera, bragging and saying this such as:

Sh-t and M-ther F-cker many many times

That's the REAL person right there exposed to everyone to see.
Not the act he and others put on wearing a suit trying to fit into a clean cut classy, tasteful business environment.

He could be white, black, any colour any race. That exhibition of the real person exposed is so far removed from Apple and say Jony Ive, Tim cook, or even the last Steve Jobs as you could ever possibly get even if you tried.

Wait a second. The person in the video is primarily Tyrese Gibson, not Dr. Dre. Dr. Dre appears in the background for part of the video only.

And, moreover, in certain cultures in the US, hip hop being one of them, I hate to say it but that sort of lingo is commonplace. It's an offshoot of growing up in urban areas. It obviously doesn't jive with the clean cut, high tech appearance that Apple has groomed, but I don't think it's an indictment of Dr. Dre's character.

And then finally, on the original topic itself, I really really doubt that the deal is delayed primarily because of this video. It might not have seemed particularly tasteful, but I think the issue truly is one more of valuation and roles. None of this makes much sense at all. If you value the services of one person or persons, then you bring him on board. But not for 3.2 billion. The subscription service is still too small to command any valuation even near that. And the headphones are something Apple could clearly design and manufacture on its own. I wouldn't even be surprised if Jony Ive thought them offensive to his tastes.

So it could just be that, yes, there were and are talks and that maybe a 3.2 billion valuation was throw out on the table by the target. But Apple balked at the number and no deal has been consummated.

 

[charlituna]

No mention about Apple on that video or any deal that I recall.

There wasn't. But all the rumor mill are still using it as 'proof'. Cause that's what they do.

 

[Parasprite]

Yikes . This Beats deal has brought out all the DownLow Racists .

It's just white people being white peopl—

But joking aside, it's really amazed at how certain people have said "I'm not racist, but I don't want that trash culture near my classy Apple products" and missing the point entirely.

I need to go get more popcorn for the long MR week end.