While it was previously reported that the Apple buyout of Beats Electronics was supposed to be announced this week, Billboard has compiled a list of five different reasons the deal isn’t yet finalized according to its own sources.
A few of these potential hold-ups include issues determining Beats’ valuation and issues with finding a place for Dr. Dre and Jimmy Iovine to fit into Apple’s corporate structure. According to one of Billboard’s sources, Apple’s executives were “freaked out” by the video that surfaced a few weeks ago of Dr. Dre and Tyrese Gibson (accidentally) confirmed that a deal was in the works.
A recent post on the anonymous social network Secret from a user claiming to be an Apple employee says that the talks between the two companies have ended without a deal. Of course, as with anything on Secret, the anonymous nature of the network makes this information dubious at best.
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Nothing against Beats and Dre, but i’m kinda hoping Apple will change it’s mind so i can get a good laugh.
It’s worth 10% of the rumored offer.
If Beats is doing $1.4B in revenue annually at what can only be assumed as a high margin, is $3.2B really that far off base if they want Iovine to head up a music and video division that is losing ground to Netflix and Spotify? It has also has been noted that Apple can use their overseas cash for the transaction. Seems like there is minimal downside and quite a bit of upside if you look at the potential growth beyond just their hardware.
3.2 billion for 2 people?
Do they really make 1 billion in
profits from headphones?
That’ a lot of headphones!!!
I hope Apple lets this pass.
If they did acquire it they won’t tell you until WWDC on June 2nd
“While it was previously reported that the Apple buyout of Beats Electronics was supposed to be announced this week, Billboard has compiled a list of five different reasons the deal isn’t yet finalized according to its own sources.”
How about the fact that it was a load of crap created by journalists to get people clicking on their website; I’ve got a good ‘rumour’ – Tim Cook personally visited me and said he would make me the president of the software division which will oversea Apple buying out Adobe and integrating into the larger creative suite of applications that Apple makes. What evidence do I have? Zero but it seems that zero evidence is all you need to whip up a firestorm these days even if there is nothing to back up the claims.
Loose lips sink ships.
Alternative: Squeals kill deals.