Apple to Buy Beats Audio for $3 Billion - Update

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Apple to Buy Beats Audio for $3 Billion - Update

Apple Beats Audio 310x

Apple will spend $2.6 billion in cash on the deal, with the remaining $400 million coming as Apple stock.

Update: Apple just confirmed that it will be acquiring Beats Music and Beats Electronics. The buying price is $3 billion, $200 million lower than the rumored number reported earlier this month. The $3 billion will be made up of $2.6 billion in cash, along with $400 million in Apple stock.

Beats co-founders Dr. Dre, and Jimmy Iovine will be joining Apple post-acquisition, but their new roles within the company were not disclosed.

"Music is such an important part of all of our lives and holds a special place within our hearts at Apple," said Apple CEO Tim Cook in a statement to the press. "That's why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world."

Original Story: Apple is about to pull the trigger on one of its biggest acquisitions ever.

Financial Times (account or subscription required) is reporting that Apple is within days of closing a $3.2 billion acquisition of Beats Audio, the music hardware-software company started by Interscope co-founder Jimmy Iovine, and my main man Dr. Dre.

The deal is uncharacteristically big for Apple, which has historically limited itself to smaller purchases. In comparision, all three of Apple's "major" chipmaker acquisitions -- Intrinsity, PA Semi, and Passif Semiconductor -- reportedly didn't cross the $200 million mark.

So why the big number for Beats Audio? For starters, it never hurts to have a popular audio hardware manufacturer under your belt. Whether or not you think Beats headphones are overrated, they make tons of hardware, and tons of cash.

More important than Beats headphones, however, is Beats Music, the new -- and struggling -- Spotify-esque music streaming service. Music streaming is one area where Apple is weak against competition like Spotify, Pandora, and Google Play Music. With a software ecosystem ready to go, Apple and Beats Music could give each other a serious shot in their respective arms.

FT speculates that the deal will be closed by the end of next week,

Permalink

Terrible overpriced rubbish, The Nike of audio hardware.

At least it rolls two kinds of people that I despise into one, People who wear Beats and people who own iPhones =)

On a more serious note it's mainly because these are two of the companies who are a driving force behind peoples capitulation towards Brand over Quality.

Waste of money, but I can't wait until the Apple products now have a Beats Logo on them.

KaZuYa:
Terrible overpriced rubbish, The Nike of audio hardware.

At least it rolls two kinds of people that I despise into one, People who wear Beats and people who own iPhones =)

On a more serious note it's mainly because these are two of the companies who are a driving force behind peoples capitulation towards Brand over Quality.

Exactly, the headphones are shit and are only popular because some mediocre rapper endorses them.

I'm hoping more of them are replaced by tuna(this actually happened, look it up).

Well, I guess that's the end for Beats on HP laptops then.

Meh. Giant who cares. Beats are great for one particular type of sound, but if you listen to anything other than bass-laden hip hop then they're a phenomenal waste of money.

RaikuFA:

KaZuYa:
Terrible overpriced rubbish, The Nike of audio hardware.

At least it rolls two kinds of people that I despise into one, People who wear Beats and people who own iPhones =)

On a more serious note it's mainly because these are two of the companies who are a driving force behind peoples capitulation towards Brand over Quality.

Exactly, the headphones are shit and are only popular because some mediocre rapper endorses them.

I'm hoping more of them are replaced by tuna(this actually happened, look it up).

Did you just call Dr. Dre mediocre? Those are fightin words.

why ? coz Beats red cable elitist shit is more popular then the once white headphones cable ? So two overpriced douches can make even bigger overpriced douche shit. yaaaay

Overpriced and mediocre hardware. Sounds like a match made in heaven.

The jokes about the match of overpriced, style over substance "Fashion statement" conspicuous consumption gadgets make themselves.

You can tell if someone is serious about their audio because they don' own a pair of shitty, massive, show-off headphones with awful sound quality. Personally i think over-ear headphones belong in the home. If you actually want some good audio equipment then invest the 200 or so and get a pair of Meze headphones. They are some of the best non studio priced headphones you can get.

The point of having a large, inconvenient pair of headphones is they offer studio quality audio. You can get the same 'boosted base' from some decent inner-ear headphones. Those also offer some great noise cancelling solutions too. You might as well carry around a grammar-phone everywhere. If you sit on the bus with a giant pair of beats around your neck then you are waring a sign saying "I am i douche who wastes my money and knows nothing about audio quality"

Scrumpmonkey:
The jokes about the match of overpriced, style over substance "Fashion statement" conspicuous consumption gadgets make themselves.

You can tell if someone is serious about their audio because they don' own a pair of shitty, massive, show-off headphones with awful sound quality. Personally i think over-ear headphones belong in the home. If you actually want some good audio equipment then invest the 200 or so and get a pair of Meze headphones. They are some of the best non studio priced headphones you can get.

The point of having a large, inconvenient pair of headphones is they offer studio quality audio. You can get the same 'boosted base' from some decent inner-ear headphones. Those also offer some great noise cancelling solutions too. You might as well carry around a grammar-phone everywhere. If you sit on the bus with a giant pair of beats around your neck then you are waring a sign saying "I am i douche who wastes my money and knows nothing about audio quality"

Or you know, they could just like the way they look and provide the experiences they paid for.

I don't get why people have to throw on one off statements against people who don't think the same as them.

That's fine, Sennheisers are just as good for half the price, and they match my Android just fine. :D

Well, they would, if I didn't keep getting Skullcandy gear at massive discounts because my timing is amazing.

RaikuFA:

KaZuYa:
Terrible overpriced rubbish, The Nike of audio hardware.

At least it rolls two kinds of people that I despise into one, People who wear Beats and people who own iPhones =)

On a more serious note it's mainly because these are two of the companies who are a driving force behind peoples capitulation towards Brand over Quality.

Exactly, the headphones are shit and are only popular because some mediocre rapper endorses them.

I'm hoping more of them are replaced by tuna(this actually happened, look it up).

While I'm on board for Beat Headphones being just overpriced crap... Dre is definitely not a mediocre rapper. Just saying.

OT: I see guys at the gym all the time wearing those things, and they look completely stupid. I got a pair of ear buds (not like that shit that comes with an iPod, genuinely good comfortable ear buds) and they are never in the way and sound great. But those idiots with their big stupid Beatfones on... well that shit is ridiculous.

Fashion aside though, in the gym, those headphones make no sense. They would be awesome if they were self contained though. Then they would be worth it without the wire in the way. But as they stand, it's like a little fashion fad that is making it's way out of the gym in a pretty quick manner.

The headphones are crap, yeah - but to the people bashing the iPhone's audio quality - you haven't the slightest idea what you're talking about.

Having owned both an iPhone and an Android (HTC One M8, which is arguably one of the best sounding Androids on the market), I can tell you for certain that the iPhone was a whole lot better. Certainly not as loud, but a noticeably higher fidelity.

Seriously, check any "audiophile" (not fond of that term) website; they usually don't like the audio quality on cellphones all that much, but if one were to chose a phone solely based on that factor, they'd recommend an iPhone.

So just like all apple products: stuff marked up at about 1.5 times what you should actually be paying for it.

shintakie10:

RaikuFA:

KaZuYa:
Terrible overpriced rubbish, The Nike of audio hardware.

At least it rolls two kinds of people that I despise into one, People who wear Beats and people who own iPhones =)

On a more serious note it's mainly because these are two of the companies who are a driving force behind peoples capitulation towards Brand over Quality.

Exactly, the headphones are shit and are only popular because some mediocre rapper endorses them.

I'm hoping more of them are replaced by tuna(this actually happened, look it up).

Did you just call Dr. Dre mediocre? Those are fightin words

I heard a few songs from him, it was very meh to me.

I suppose for apple even $3.2 billion is loose change. I personally would not invest in that overpriced garbage but I can see why Apple would! Maybe this could mean that they could have beats earbuds replacing the stock earbuds that come with the iPhone...

KaZuYa:
...On a more serious note it's mainly because these are two of the companies who are a driving force behind peoples capitulation towards Brand over Quality.

I personally think that Apple stuff is actually fairly high quality. And even on the rare occasion that it breaks they have far better customer support than other tech companies.

I had a problem with an iPod touch that I had bought at Dick Smith Electronics which caused it to not power on at all, not even when plugged in. I took it to the Apple store and one quick word with an Apple Genius(TM) later I had a bit of paper that I could take back to Dick Smith Electronics to get a new one for no charge as the Apple store did not have any replacement stock. So I went over to Dick Smith, gave them the bit of paper and walked out with a new one which has not given me any trouble to this day.

KaZuYa:
Terrible overpriced rubbish, The Nike of audio hardware.

At least it rolls two kinds of people that I despise into one, People who wear Beats and people who own iPhones =)

On a more serious note it's mainly because these are two of the companies who are a driving force behind peoples capitulation towards Brand over Quality.

You Beats™ me to it.

Though I hate to admit it, Apple stuff isn't as much low quality as extremely over-priced and nowhere near as innovative as Apple fans are instructed to believe.

I was watching a interview recently were 50 cent said that Dre's latest album would never be released for fear that if it was bad it would hurt beats sales. If Dre cleans his hands of beats we might finally see detox get released. Lets hope it's not hip hop's duke nukem forever.

Great, now Apple is in the headphone and music streaming businesses. They might start coming out with rebranded crap Beats headphones for the people who might not have want a rapper endorsed headset but will gobble up anything with that half eaten fruit logo emblazoned on it. And they most certainly will be integrating the Beats Music with itunes and Apple ID. They'll also start trying to stifle competition with both their brand appeal, itunes account integration, and somewhere down the line the frivolous lawsuits that Apple is getting famous for making. Yay, everyone wins. (Everyone who owns Apple shares and no one else, that is.

truckspond:
I suppose for apple even $3.2 billion is loose change. I personally would not invest in that overpriced garbage but I can see why Apple would! Maybe this could mean that they could have beats earbuds replacing the stock earbuds that come with the iPhone...

Yeah, that would give them a reason to charge an extra $50 or more for an ipod/iphone. Just like how today they(and many other tech companies) charge $100 extra for 32 GB of extra storage when it costs them maybe $20.

truckspond:
I personally think that Apple stuff is actually fairly high quality. And even on the rare occasion that it breaks they have far better customer support than other tech companies.

No, they don't always break, but the software does get updated to the point where the hardware can't run the software any more.

Happened with my 2nd Gen iPod. It originally shipped with iOS 2.1, and I upgraded it for free to 3.1 when it came out a year later, and that's when the battery life was cut by half, it became slow and sluggish. I bought an Android phone after that and never bought an Apple product again.

Also happened with my Girlfriend's 2010 17" Macbook Pro. It shipped with OS X Lion, she paid for the upgrade to Mountain Lion, and got the free upgrade to Mavericks. Everything was fine until 10.9 was installed. Apps don't start as fast as they used too, Running web based apps like Google Docs are absolutely sluggish. On paper, the hardware meets and exceeds the recommended requirements for 10.9, so what gives? Those friendly Genius Bar associates couldn't figure it out either but were willing to look at it for us for nominal fee that makes other computer repair shop bills look like I'm ordering something off the McD's dollar menu.

Needless to say my Girlfriend and I bought a Windows 8.1 touch screen labtop (With identical specs of Apple's current gen Flagship macbook) for 1/4 the price of what she originally paid for her Macbook.

Apple may make 'quality' products, but they do practice planned obsolescence.

aceman67:
-Snip-

Try running Windows 8.1 on a machine designed for Windows XP with 512 MB of RAM and let me know how you go!

Windows PC's become obsolete over time as well. The main reason for that is because the OS becomes more demanding to run as more stuff is added! This also happens with OSX and iOS which is why that 2nd gen iPod Touch (They're on the 5th gen now, there is no excuse to not upgrade!) does not support anything above iOS 6 and that 2010 MacBook Pro is running sluggishly (Try running a time machine backup and then taking it to a genius bar for a format and OSX 10.9 reinstall. That should make things a bit better)

aceman67:
Also happened with my Girlfriend's 2010 17" Macbook Pro. It shipped with OS X Lion, she paid for the upgrade to Mountain Lion, and got the free upgrade to Mavericks. Everything was fine until 10.9 was installed. Apps don't start as fast as they used too, Running web based apps like Google Docs are absolutely sluggish. On paper, the hardware meets and exceeds the recommended requirements for 10.9, so what gives? Those friendly Genius Bar associates couldn't figure it out either but were willing to look at it for us for nominal fee that makes other computer repair shop bills look like I'm ordering something off the McD's dollar menu.

Needless to say my Girlfriend and I bought a Windows 8.1 touch screen labtop (With identical specs of Apple's current gen Flagship macbook) for 1/4 the price of what she originally paid for her Macbook.

Apple may make 'quality' products, but they do practice planned obsolescence.

Wow, a 4 year old laptop, especially a Mac Book Pro with Apple's yearly OS updates, shouldn't be bogged down by a new OS like that.

The problem with those genius bars is most of the employees have just basic training, with maybe 1 or 2 guys who know their stuff and probably weren't their when you visited. Other big chain store PC repair departments have that problem, since they pay minimum wage and won't hire many tech savvy people citing "over qualification" and not wanting to pay them extra or hire replacements when they find better jobs.

The "Geniuses" also tend to throw parts at a problem computer until it works, and if it doesn't they say the logic board is bad and charge almost the full price of a new mac to replace it. Apple wants to make more money, either through Applecare warranties or new Mac sales. It makes me wonder if Beats headphones will start coming with cards offering useless $50 extended warranties now.

If you still got the Macbook, follow truckspond's advice or go back to Mountain Lion. Then sell it if your girlfriend is happy with her new laptop. Used Macs go for big bucks online, despite the fact they're aging almost as fast as Windows PCs nowadays.

truckspond:

aceman67:
-Snip-

-snip-

First off, my 2nd Gen iPod started to lose performance immediately after installing ios3.1 when it came out. Its battery life was eviscerated. After a month of the battery being drained quickly and constantly needing to be recharged, the battery life went from being able to go 3 days on stand by to just 12 hours before being dead. It eventually wouldn't hold a charge at all. All this happened right when the 3rd generation iPod touch was released.

Second, the Macbook pro I was talking about was bought when it was Apple's flagship model, top of the line. When 10.9 was installed, it was done with a full format. Apple advertises that a Macbook from 2007 is capable of running 10.9 and our macbook meets and exceeds the requirements for the OS, so this is apple's doing.

Intentional Planned Obsolescence.

Captcha: righty tighty

VladG:

Though I hate to admit it, Apple stuff isn't as much low quality as extremely over-priced and nowhere near as innovative as Apple fans are instructed to believe.

Their headphones are extremely low-quality. Those things have a lifespan of about 6 months and cost $40. Merely placing your iPod in a jeans pocket is enough to shred the rubber around the base of the headphone jack.

So in this case I feel all the jokes about Beats are entirely justified.

aceman67:

truckspond:

aceman67:
-Snip-

-snip-

-snip-

Again, let me know how you go running Windows 8.1 on a machine designed for Windows XP

truckspond:

aceman67:

truckspond:
-snip-

-snip-

Again, let me know how you go running Windows 8.1 on a machine designed for Windows XP

How is running an OS on a 4 year old laptop that has the specifications that EXCEED the minimum requirements for said OS even remotely compare to trying to run a modern OS on a machine that's almost 14 years old? You're grasping at straws trying to make me look like an idiot while only accomplishing one thing: Making yourself look like one yourself.

Honestly, its a childish response.

Shamanic Rhythm:

VladG:

Though I hate to admit it, Apple stuff isn't as much low quality as extremely over-priced and nowhere near as innovative as Apple fans are instructed to believe.

Their headphones are extremely low-quality. Those things have a lifespan of about 6 months and cost $40. Merely placing your iPod in a jeans pocket is enough to shred the rubber around the base of the headphone jack.

So in this case I feel all the jokes about Beats are entirely justified.

Oh, yeah, that is true. I was thinking about their core products - iphone, ipads, macbooks, that stuff. Some accessories are just a joke. Extremely, offensively overpriced for the low quality on offer, if you ask me. Their new 5W charging bricks are some of the worst offenders. We got a bunch of them at work, and I actually thought they were cheap Chinese knock-offs until I saw the price (and later received confirmation that they are, indeed, genuine apple shit). And the biggest joke is they don't even work properly with some of the older hardware (like 1st and 2nd gen ipads)

aceman67:

truckspond:

aceman67:
-snip-

-snip-

...Honestly, its a childish response.

It's fairly clear that the irony from those four words went way over your head...

The pictures of Andre Young's beaming smile has brought a smile to my face as well. He looks like a child that just won the world.

3.2 BILLION! For the rights to freaking headphones that most people tell me are pretty shitty anyway... aaaw fuck this...

Over priced mediocrity buying over priced trash. And the ignorant general public will lap it up not knowing any better.

I remember a few years back when the white over the ear Beats headphones were first released, my friends fiancee wanted a pair so bad, and once my friend bought them for her she referred to them as "my Beats". She was so proud and happy to own them and she would plug them into her iPad to listen to her pop music all the time. It was kind of silly but whatever. Well I tried them on once to hear if they were worth the money and I had to immediately hide my expression from her because I didn't want to break her heart and give any sign that her beloved Beats sound like dog poo, but I gave my friend a look like "wtf? this sounds like shit." He nodded in subtle agreement. He's an audiophile with an enormous physical music collection so once she was out of the room we discussed the over priced headphones at length. We both agreed that they are all bass (and flat sounding bass at that) and every frequency within the range of 40hz on through 20khz (if you can even hear them on these things) sound like a muddied and subdued mess. I've heard they haven't improved much since then. They have a newer Studio DJ pair or whatever that's supposed to sound better, but for the price you're paying you can save quite a bit of money and opt instead for a much better sounding pair of Shures or Sennheisers and use the rest of what you saved for buying music.

This is a buyout that makes a lot of sense. Mediocre overpriced speakers and headphones being sold by a mediocre and over priced computer seller for use with their mediocre quality audio files on their mediocre overpriced phones. That's a hell of a lot of synergy.

So the deal is finalized, and Dr. Dre is now a part of Apple. I totally want him to host all of the trade shows, like MacWorld, and rap about the latest Apple crap they come up with.

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