Apple is buying Beats for $3 Billion

[Draz]

Apple is officially buying Beats for $3 billion, just shy of the rumored price leaked a few weeks ago, the companies announced Wednesday.
Apple will pay $2.6 billion up front, plus another $400 million over time. Apple's getting stylish hardware from Beats Electronics and a streaming service with Beats Music.


Source: http://money.cnn.com/2014/05/28/technology/apple-beats/

Pay day. Too much if you ask me.

[oarabbus]

Wow, overpriced. Just like Apple products and Beats headphones.

[BurningHammer]

I thought Apple was backing out because of Dre's drunken remarks or some sorts.

[Draz]

Their products are terrible. Had beats by Dre solo hds my ex got me and it broke under amazing condition.

[treadster]

apple literally buying out their competition

[BigBoss]

apple literally buying out their competition

at you not understanding business.

[Derka]

When Beats makes a web app worth a f*ck, I'll pay attention. Not eating up all my phone's data to stream music, though. I have a big enough library to keep myself entertained.

[andgar923]

The purchase was about content and talent (Dre and Iovine). Apparently the acquisition has been 10 years in the making.

Beats and the Beats app will continue to be produced as they currently are.

Apple is very tactical in their decisions to purchase companies, this purchase is huge for them and Im sure they have big plans (obviously).

[bdreason]

Desperate move from Apple. Steve Jobs is rolling in his grave.

[andgar923]

Desperate move from Apple. Steve Jobs is rolling in his grave.

This purchase is 10 years in the making, Iovine and Steve were close friends.

[ace23]

Wasn't this posted on here like 2 weeks ago?

[East_Stone_Ya]

actually Apple is buying Jimmy Lovine and his connexions in the music business

[bdreason]

This purchase is 10 years in the making, Iovine and Steve were close friends.

I don't think they've even been a company for 10 years... and up until last year they were majority owned by HTC.

[andgar923]

I don't think they've even been a company for 10 years... and up until last year they were majority owned by HTC.

http://www.deadline.com/2014/05/appl...about-3b-deal/

“I asked them every day for [COLOR="Red"]10 years[/COLOR],” said Jimmy Iovine, the long-time Universal Records executive who co-founded Beats with rap super-producer Dr. Dre.

“Tim (Cook, the Apple CEO) was involved in the conversation and we just said, ‘Let’s go,’” Iovine said. “How does somebody date for [COLOR="red"]10 years[/COLOR], and then suddenly you get married? It just happens. I’m at Apple now. I can’t say anything.”

The company itself may not have been in existence, but the ideas and figures were.

In [COLOR="Red"]2002, 2003[/COLOR], Doug [Morris, former Universal Music head] asked me to go up to Apple and see Steve. So I met him and we hit it off right away. We were really close. We did some great marketing stuff together: 50 Cent, Bono, Jagger, stuff for the iPod — we did a lot of stuff together.

But I was always trying to push Steve into subscription. And he wasn’t keen on it right away. [Beats co-founder] Luke Wood and I spent about three years trying to talk him into it. He was there, not there … he didn’t want to pay the record companies enough. He felt that they would come down, eventually.

I don’t know what [Apple media head] Eddy Cue would say — I’m seeing him soon — but I think in the end Steve was feeling it, but the economics...he wanted to pay the labels [for subscriptions], but [the fees were] not going to be acceptable to them

.

http://www.macrumors.com/2013/01/10/...music-service/

There's also logs on iOS SDK that reference hi-fi audio, also of note a few years ago Apple hired THX sound expert which may be a possible hint at something related.

[andgar923]

The purchase of Beats is basically to position themselves to invade the tv market. Apple Tv is in their headlights and they need Iovine's connections.

This was a big purchase for Apple, and Im sure they're expecting bigger rewards in a new field.