Apple close to buying Beats for $3.2 billion: source

Comments (23)
zappaz76 wrote:

“In two of the largest deals this year, Google Inc paid $19 billion for WhatsApp”… when did this happen?

May 08, 2014 8:52pm EDT  --  Report as abuse
nose2066 wrote:

Over $3 billion for a potential, future music streaming service???

It seems like a rather expensive “cool factor”.

May 08, 2014 10:13pm EDT  --  Report as abuse
KNoose000 wrote:

Wow.
What a hideous deal. Beats are simply a TREND…
If you listen to them in Best buy, they are all base…low quality.
A trend because people like acting “urban” lately is not worth billions.
Bad bad idea.

May 08, 2014 10:29pm EDT  --  Report as abuse
DougAnderson wrote:

I think it’s a good fit. Overpriced garbage maker buys overprices garbage.

May 08, 2014 12:22am EDT  --  Report as abuse
umkomazi wrote:

oh brilliant! The price will rocket & quality collapse…will apple be selling toilet paper next & food ..so you can fill you face…go to the toilet…while being bombarded with thumpa thumpa streamed music on their overpriced laptops…deep joy!

May 09, 2014 1:05am EDT  --  Report as abuse
Butch_from_PA wrote:

KNoose000 – it’s a demographics game. Most young kids know nothing about sound quality. They just want to look cool.

May 09, 2014 2:03am EDT  --  Report as abuse
nose2066 wrote:

In thinking about this some more, maybe it does make sense if Apple wants to integrate the iPod into the headphones so that they are all one piece of equipment.

After all, you can make a lot of money, selling the same functionality over and over again, but in different form factors – as Apple has proven many times.

May 09, 2014 5:35am EDT  --  Report as abuse
sentient02970 wrote:

This isn’t about the headphones, it’s the streaming service which Apple is giving up on by just buying another great idea someone else came up with.

May 09, 2014 7:25am EDT  --  Report as abuse
OtmaneELRHAZI wrote:

It is going to be a great sell.

May 09, 2014 7:53am EDT  --  Report as abuse
gcf1965 wrote:

Saying Beats competes with Sennheiser or even Bose is like saying the Chevy Cruze competes with a BMW M3 or Merceded AMG product, yeah they are both music products, but not even in the same class for quality.

May 09, 2014 9:06am EDT  --  Report as abuse
katzn wrote:

@gcf1965:
Well considering the average teenager is using the headphone equivalent of a Trabant, Beats or Bose seem like a big upgrade. I personally love my Grados, although I’ll leave it to you to devise a fitting car analogy.

May 09, 2014 12:16pm EDT  --  Report as abuse
dd606 wrote:

3 billion for some crappy headphones? They finally want to spend some money, and this is the best they can come up with? Think Steve would have done this?

May 09, 2014 12:48pm EDT  --  Report as abuse
Anonarchist wrote:

I didn’t think Beats could be any worse. I guess I was wrong.

May 09, 2014 1:42pm EDT  --  Report as abuse
Anonarchist wrote:

KNoose000, it makes sense. Beats is a product that looks flashy and doesn’t preform, just like Apple.

May 09, 2014 1:44pm EDT  --  Report as abuse
Simplerman wrote:

Yawn. Whatever.

I am starting to notice all the zombies walking around the hood with their I-Phone’s hanging from their necks.

Remember when computers actually helped you be more productive.

May 09, 2014 5:20pm EDT  --  Report as abuse
Simplerman wrote:

Yawn. Whatever.

I am starting to notice all the zombies walking around the hood with their I-Phone’s hanging from their necks.

Remember when computers actually helped you be more productive.

May 09, 2014 5:20pm EDT  --  Report as abuse
SR37212 wrote:

Remember all the trouble Apple had when they removed Jobs …Unfortunately they can’t call on him this time around.

@katzn: Bose is heads above Beats. While I do love Grados ps1000 as an earbud reference they really are not even close to Tridents HG3 nearfield monitors.

May 09, 2014 5:25pm EDT  --  Report as abuse
dd606 wrote:

This isn’t about stupid headphones… It’s about them trying to buy out potential competition, with their streaming music and online music sales. Apple could obviously design their own headphones. That’s not rocket science.

May 09, 2014 7:48pm EDT  --  Report as abuse
gregbrew56 wrote:

Apple obviously doesn’t understand the fickle teenager. Beats is cool today, but it will be the yawn of tomorrow, relegated to the disorganized abyss that is the teenaged sock drawer.

May 09, 2014 8:12pm EDT  --  Report as abuse
kristy17 wrote:

what the hell is wrong with everyone? there are SO many other ways to better spend $3.2 billion freaking dollars. but no, let’s buy HEADPHONES.

May 09, 2014 8:14pm EDT  --  Report as abuse
AZWarrior wrote:

There is a deal that smells of desperation.

May 10, 2014 6:03pm EDT  --  Report as abuse
bluto1960 wrote:

It’s about the streaming (beatsmusic.com) and Spotify , not the headphones although the headphones bring 60% of the under $300.00 headphone market with them and are profitable.
**
iTunes is in decline and iTunes Radio and iMatch never took off the launching pad.

In typical fashion Apple is late to the streaming music platform just like they were with iPods and smartphones although they were able to overcome that and dominate those markets .

The alternatives would have been Spotify at maybe ~6B or Pandora at ~5-6B. They get beats for ~3.2B although the streaming service needs work Beats otherwise gives them an on ramp to streaming and a profitable headphone business.

The Beats acquisition could work out well for Apple in the long term. A trendy profitable headphone business can’t hurt either. OTOH In the short term even if they tripled sales and profits it would hardly budge Apples bottom line profit that was $37 billion in 2013 in any significant way .

Buying beats may be looked at by investors as an admission that Apple can not build
a successful streaming music business within the Apple ecosystem yhus far despite owning iTunes and having 800m credit card numbers from iTunes accts. that’s not unlikely considering the stock hardly moved on this news

Reports are that Jay Z and Levine
may join Apple in sr. positions. maybe they are seeking
some experise and street cred there or maybe they just want to hang out wit Jimmy L. and Jay Z and Beyonce’

Apple is all about domination and although 3.5B ( If the deal actually goes though ) is at minimum a 150% to value (probably more) purchase they are probably looking at it as an opportunity cost ,a hedge, or Tim Cook has otherwise lost his mind! (doubtful)

There is little risk to Apple considering their scale and cash reserves it could ultimately be a huge upside for them in the long term if they execute well….

For perspective this purchase (if it happens ) is less than 2% of Apples cash reserves.

May 11, 2014 5:54pm EDT  --  Report as abuse
bluto1960 wrote:

@ zappaz76

Clearly someone at F.B. lost their mind on that one ☺

May 11, 2014 5:56pm EDT  --  Report as abuse
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