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Jimmy Iovine and Dr. Dre May Make First Official Appearance at Apple's WWDC

deconstruct60 said:
Sanest member of the asylum isn't saying much.

$3B for someone who has a streaming service just like the one you just started?
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It's not "just like" the one they just started. iTunes Radio is an advertisement based streaming service and Beats is a subscription based on demand music service. The differences are monumental and the costs associated with the latter are far greater than the former. Subscription based services are sadly the future and Apple would be foolish to wait any longer than they already have to enter the game. Your misunderstanding of this fact seems to indicate that you have no idea what you're talking about...or you're willing to be dishonest about the situation.

deconstruct60 said:
$3B for "hot or not" fashion trendy accessory?
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$400 million in profits last year would seem to indicate that the answer is "hot". The popularity of Beats headphones (whether deserved or not) by itself makes this deal a relatively safe one.

deconstruct60 said:
But that is a nice payday for the bankers, lawyers , and those who get to write up the hype. It isn't just this particular deal but a healthy fraction of multibillion acquisitions are busts. Whipping out this simplistic multiple isn't particularly accurate or useful for buyers. The folks brokering these deals will walk away from this deal with as much of Apple's money as they can get their hands on.
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I'm willing to bet that Apple knows way more about making money than you and I do. Actually according to their profits, they know more about it that anyone in the world. Why don't we let them worry about what to do with the largest pile of cash in the world, and they can let us continue to demonstrate our wisdom here on MacRumors.
 
There's a fault on anchoring your perceptions on the previously valued $1 billion, it's just a number. It doesn't really reflect anything about this deal.

There's a big difference between buying a stake in the company, and buying it out. When you buy the entire company, as Apple is doing, a takeover premium is added. The valuation for a company when it's being bought in it's entirety is larger. The deal has to be much sweeter for the owners because their losing they're company. This will come in the forum of a higher price, an executive position, etc.

There's also the concept of investment value. The value of the company is dependent on the uses of the buyer, instead compared with other transactions in the market (i.e., multiples).

Apple is a very sophisticated company. I'm sure they understand the valuation. I think anyone who thinks it's too much is possibly being afflicted with anchoring bias.
 
Nuvi said:
Everything is for sale with right amount of money. The point being, integration of Spotify and Netflix would have been killer subscription service (which Apple needs) and not some half ass re-branding job like Beats Music aka MOG. Spotify value is around $10 billion and Netflix $20 billion but in five years they could easily be three times that much. Therefore, they both are good investments at the moment.
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You are literally just pulling numbers out of your butt.
 
Watch the video with Dre and Tyrese on Youtube throwing around the N word. Apple is now a racist company. I mean, honestly, I want to puke.
 
usarioclave said:
Buying Steve Jobs replacements (in relation to music) will cost Apple $3.2 billion and increase headcount by 2.

Look for Apple to do the same on the movie side soon?

The beginning of the end...
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Since the deal would pay for itself in ten years or less aren't they getting those two people for free? Seems like a good move.
 
billystlyes said:
Watch the video with Dre and Tyrese on Youtube throwing around the N word. Apple is now a racist company. I mean, honestly, I want to puke.
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Sadly there is a double standard about the use of the N-word, but you're resorting to hyperbole by claiming this video makes Apple a racist company. Feel free to puke anyway.
 
It would be hilarious if Apple's pre event music selection takes a dramatic shift from Beatles and Coldplay to wall-to-wall Gangsta Rap.
 
grumple said:
After reading these threads, I'm embarrassed to be an Apple fan. Some people need to grow up.

Looking forward to their keynotes @ WWDC 2014
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Reading MR makes me embarrassed to be an Apple fan.

Most of you people need to grow up, period.
 
Rogifan said:
Before this rumor surfaced was anyone saying that Apple needed to get into the overpriced headphone market?

What if Apple has decided that in order to grow they need to reinvent themselves as a fashion company? That's basically what Beats is.

http://stratechery.com/2014/apple-buying-beats/

https://medium.com/p/ef40bb2cd162
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Why do you keep asking the same pointless question and then ignoring the answers that are given? I mean, it doesn't make sense. You're acting like the people who keep saying that just because Apple may have NFC in the iPhone 6 that all Apple users will suddenly say NFC is great. What exactly is your angle?

Let me repeat again: No one was talking about Apple acquiring beats because it wasn't news before. Further NO ONE is saying "Apple needs to get into the overpriced headphone market!!" and you're just making strawmans.

This is the 2nd time I've answered your question and at least the 4th or 5th time you've asked it, so I expect you to ignore this answer also and ask it again, but seriously...what's your angle??
 
Trapezoid said:
Why do you keep asking the same pointless question and then ignoring the answers that are given? I mean, it doesn't make sense. You're acting like the people who keep saying that just because Apple may have NFC in the iPhone 6 that all Apple users will suddenly say NFC is great. What exactly is your angle?

Let me repeat again: No one was talking about Apple acquiring beats because it wasn't news before. Further NO ONE is saying "Apple needs to get into the overpriced headphone market!!" and you're just making strawmans.

This is the 2nd time I've answered your question and at least the 4th or 5th time you've asked it, so I expect you to ignore this answer also and ask it again, but seriously...what's your angle??
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Thank you. This has to be at least the 4th time he's asked this same question. As most people tend to acknowledge (except a single CNBC host apparently) this move would be more about the streaming service than anything else. Some people think it's about hiring Iovine, but that seems a bit silly. Why were people talking taking about buying Beats last year? Hmmmm...what did they not have last year that they have this year? If you guessed streaming service you'd be correct. Without Beats music, the deal is never considered.
 
Apple, kill yourself....
You are nothing but jumping on band wagon of big trend...cook, you lose!
 
a0me said:
Beats headphones are crap and most people are not happy with Apple being associated with a company that makes junk?
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Rumor has it these are must haves in the hood. Apples going to get street cred by embracing hip hop and the thug life. Wow! What Apple won't do for money. They need to relocate to Los Angeles, Cupertino gives off the wrong vibe.
 
buzzardo said:
How much money did HTC lose on the Beats brand Android phones?
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How much money did Beats make last year? Beats is a very profitable company and is certainly not the reason HTC is struggling. Beats didn't even have a streaming service when HTC sold their Beats stock. Apple won't suddenly start losing money if they purchase Beats.
 
Zerilos said:
How much money did Beats make last year? Beats is a very profitable company and is certainly not the reason HTC is struggling. Beats didn't even have a streaming service when HTC sold their Beats stock. Apple won't suddenly start losing money if they purchase Beats.
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Yep. I can't find a single review saying the m7 was a bad phone. In fact, most reviews say it was the best phone of 2013. HTC is failing because they don't have an advertising budget.
 
ugahairydawgs said:
I don't get the constant overly dramatic complaints over this deal.
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I don't care for Iovine much but he's clearly not the touchstone for the sky-is-falling folks around this deal.

Fun game for me reading these last few threads has been trying to list the acquisitions Apple could make that would have me say something like "that's it, I am NEVER buying an apple product again!" I'm having a tough time. Even a company like Comcast, which I abhor from a service/cost standpoint, I would look at like "well, apple should make this much better."
 
koban4max said:
Apple, kill yourself....

You are nothing but jumping on band wagon of big trend...cook, you lose!
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I vote that this is the dumbest comment we've seen yet on this subject. Even by MacRumors standards, this comment is an absurdly over the top reaction to an Apple related story. Gosh...I hope Apple doesn't really kill itself.
 
Limboistik said:
This is my speculation too, I feel the real value in this deal is Jimmy Iovine and further leverage on the music industry. However I have doubts whether the terms established between Beats and the record labels are even transferrable to Apple.
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But we should have no doubts that all such concerns were to Apple's satisfaction.
 
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