DR. DRE GETTING $3 BILLION FOR BEATS!! Apple Deal Reportedly Close

NPR reported the deal was done.

I'm curious what apple is planning now.

If it's for the streaming service they would have been better off trying to buy Pandora or a different service with more subscribers.

As far as the actual headphones and logo, hopefully it doens't go the HTC route...
 
No. These guys lost. Noel Lee and his son got out hustled by Jimmy and Interscope lawyers. I feel bad for them. 

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world

MY GOD THEY GOT ROYALLY SCREWED

over 9000

What would you guys have done as monster ? Walk away ?
Damn they got played
 
They didn't get screwed, it was karma... They've been ripping off folks for years with their waaaaaaaay over priced inter connects.... Screw them & the monster brand...
 
They didn't get screwed, it was karma... They've been ripping off folks for years with their waaaaaaaay over priced inter connects.... Screw them & the monster brand...



How is it a rip-off if people were choosing to purchase their Monster products off their own volition?

Is BMW ripping people off by selling expensive cars?



:lol:



...
 
They didn't get screwed, it was karma... They've been ripping off folks for years with their waaaaaaaay over priced inter connects.... Screw them & the monster brand...



How is it a rip-off if people were choosing to purchase their Monster products off their own volition?

Is BMW ripping people off by selling expensive cars?



:lol:



...

:lol: Nike deserves to get screwed for overcharging all of us.
 
laugh.gif
Nike deserves to get screwed for overcharging all of us.
From a free market standpoint they actually undercharge.
 
Now that this deal is done, and apple getting jimmy in there i think apple is eventually gonna kill off the beats brand in a couple years maybe 5-10 to give a nice cushion. And have their own itunes branded music service, and headphones. But i also could see them forming their own record label. And instead of the crappy shaddy deals that exist now they can model it for artist how they currently do for developers, you pay a yearly fee to become a developer, apple takes 30% and you keep the rest. Imagine if that model went into place ? People pay to become an apple artist, songs will be on itunes like apps. Apple takes their cut and you keep the rest. I know im not taking many many things into account like producers and writers and sampling. But maybe apple will buy licenses to cover sampling. And producers and writters could also sign up and they will get their cuts how ever it would be settled. Just the potential of that would again shake up the music industry.
 
Now that this deal is done, and apple getting jimmy in there i think apple is eventually gonna kill off the beats brand in a couple years maybe 5-10 to give a nice cushion. And have their own itunes branded music service, and headphones. But i also could see them forming their own record label. And instead of the crappy shaddy deals that exist now they can model it for artist how they currently do for developers, you pay a yearly fee to become a developer, apple takes 30% and you keep the rest. Imagine if that model went into place ? People pay to become an apple artist, songs will be on itunes like apps. Apple takes their cut and you keep the rest. I know im not taking many many things into account like producers and writers and sampling. But maybe apple will buy licenses to cover sampling. And producers and writters could also sign up and they will get their cuts how ever it would be settled. Just the potential of that would again shake up the music industry.
i don't work for apple anymore but your thinking is more along the lines of something that would happen IMO.

take nothing at face value when it comes to apple. there's always something else that ppl haven't thought of when it comes to stuff like this. there's no way its just about getting the beats brand as an "exclusive" and the streaming service.
 
i don't work for apple anymore but your thinking is more along the lines of something that would happen IMO.

take nothing at face value when it comes to apple. there's always something else that ppl haven't thought of when it comes to stuff like this. there's no way its just about getting the beats brand as an "exclusive" and the streaming service.

I knew from the moment it was announced it was going to be for much more then just what it currently offers. I posted early on in the thread that it was mostly for the streaming service but after having some time to think about it i thought up a bunch of other stuff. They are slowly going to become their own media company and i wont be surprised if soon they buy a smaller video streaming service or platform. Itunes radio is said to have about 20 million users if they can convince 2 million to become paying users of beats thats 200,000,000 with the price of the yearly sub they can make the money back of the entire purchase soon just off the streaming. And the money they will make with the current and future headphone sales they will probably make the money back in a two or three years. And then with the connections and smarts of jimmy the record label idea could get going and who knows what after.
 
This isn't about the Beats brand per se and it's even less about the streaming service. Apple could just clone the service if it wanted to.

What this is about is Apple trying to open up a new market for traditional Apple products. Look at the demographics of those who purchase Apple products. 

THe gist is:

Apple product are purchased by Asians and Whites.

Android products are favored by Hispanics and Blacks (the Urban demo). 

Apple cannot seem to break into the Android demographic on its own. Couple that with the fact that the White and Asian demographic is shrinking ( as a % of pop) and what inevitably will happen is that Apple's growth will eventually shrink in the US (its most important market). On the other hand, Android has a 52% market share in the US and an 80% share globally. 

It's a $3bn investment to capture a share of the Android market. 

This year a number of factors have begun to converge which don't bode well for Apple. 

http://www.businessinsider.com/apple-revenue-android-2014-4

I think that this shows that Apple doesn't know how to tackle the Android problem on its own. It doesn't want to step down from its "Premium" image to market to the Urban demo so it buys an Urban "premium" brand in order to sell Apple products to said demographic.

I think this move is just a throw darts at the wall type thing. For $3bn it's worth a shot for Apple. Apple is doing what Apple does best; marketing. 

This is right before the Iphone 6 launch as well.  Personally, I think Apple is making a huge mistake. The mistake isn't in buying Beats (it's worth a shot), the mistake lies in not recognizing that Android's market for smartphones is superior to Apple's.  A smartphone is a commodity, it is not a luxury good. Marketing a smartphone as a luxury item is a losing proposition. 
 
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I wonder how much the capital gains tax would be from this sale?

Alottt

Privately held so doubt anyone will ever know what exactly was spent on the start up but yea gotta be astronomical. Prob more than Sterling will pay in total between all the parties. Carlyle group gunna be forkin out some serious change too
 
This isn't about the Beats brand per se and it's even less about the streaming service. Apple could just clone the service if it wanted to.

What this is about is Apple trying to open up a new market for traditional Apple products. Look at the demographics of those who purchase Apple products. 

THe gist is:

Apple product are purchased by Asians and Whites.
Android products are favored by Hispanics and Blacks (the Urban demo). 

Apple cannot seem to break into the Android demographic on its own. Couple that with the fact that the White and Asian demographic is shrinking ( as a % of pop) and what inevitably will happen is that Apple's growth will eventually shrink in the US (its most important market). On the other hand, Android has a 52% market share in the US and an 80% share globally. 

It's a $3bn investment to capture a share of the Android market. 
This year a number of factors have begun to converge which don't bode well for Apple. 

http://www.businessinsider.com/apple-revenue-android-2014-4


I think that this shows that Apple doesn't know how to tackle the Android problem on its own. It doesn't want to step down from its "Premium" image to market to the Urban demo so it buys an Urban "premium" brand in order to sell Apple products to said demographic.
I think this move is just a throw darts at the wall type thing. For $3bn it's worth a shot for Apple. Apple is doing what Apple does best; marketing. 

This is right before the Iphone 6 launch as well.  Personally, I think Apple is making a huge mistake. The mistake isn't in buying Beats (it's worth a shot), the mistake lies in not recognizing that Android's market for smartphones is superior to Apple's.  A smartphone is a commodity, it is not a luxury good. Marketing a smartphone as a luxury item is a losing proposition. 

I feel like this echoes an article I read a while back that Android is for "poop people" which is BS. Also i feel like the same demographic that buys Apple buys beats heaphones. The same teeny boppers that have iphones have beats headphones
 
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