chinacat
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Post by chinacat on May 28, 2014 12:55:54 GMT -8
Given that the source is USA Today, I am a bit skeptical about this article but it is definitely amusing.
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Post by rob_london on May 28, 2014 12:58:57 GMT -8
Everyone looks happy.
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Post by Luckychoices on May 28, 2014 12:59:31 GMT -8
Geez. I'm glad that now all the columnists have something to write about because I'm sure there's SOMETHING regarding the deal that hasn't been covered yet.
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Mav
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Post by Mav on May 28, 2014 13:03:38 GMT -8
There's rumor coverage and then there's news coverage. Two different angles, I guess.
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Post by artman1033 on May 28, 2014 13:14:25 GMT -8
source apple press release PR: critically acclaimed subscription streaming music service Beats Music, and Beats Electronics, which makes the popular Beats headphones, speakers and audio software. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple. Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time. www.apple.com/pr/library/2014/05/28Apple-to-Acquire-Beats-Music-Beats-Electronics.html
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Post by rob_london on May 28, 2014 13:16:49 GMT -8
Apparently Eddy Cue and Jimmy Iovine are being interviewed at the Code Conference. No Federighi.
Beats Music will still be available on Android and Windows Phone after the deal, according to the FT.
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Mav
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Post by Mav on May 28, 2014 13:17:41 GMT -8
Aw.
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bud777
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Post by bud777 on May 28, 2014 13:18:14 GMT -8
I am not really sure how I feel about this deal. I am not a big fan of hippity-hop music, but I guess people can't listen to "Hotel California" forever. Well, not all of us can. I'll just trust that Apple knows what they are doing with this.
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Post by jmolloy on May 28, 2014 13:29:30 GMT -8
At least Iovine seems to get the Apple way:
From Peter Kafka's interview on Re/Code.
Thought the moron on CNBC was, well, moronic not sure who said it as it was on in the other room but:
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Mav
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Post by Mav on May 28, 2014 13:30:23 GMT -8
Beats isn't hip-hop at all. That's Dre the artist.
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Post by po1nt on May 28, 2014 13:36:35 GMT -8
Everyone looks happy. word.
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chinacat
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Post by chinacat on May 28, 2014 13:44:59 GMT -8
Here's Tim's internal memo about Beats. Where they fit: "The Beats Music team will report to Eddy. The teams will be getting to know each other better in the weeks ahead, and we are very excited about the possibilities for the future. Beats Electronics has become the brand of choice for headphones and speakers in both the music and sports world, just five years after its launch. They are among the most popular and highest-rated third-party products sold today in Apple’s retail and online stores. We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership."
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JDSoCal
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Post by JDSoCal on May 28, 2014 14:39:12 GMT -8
Beats isn't hip-hop at all. That's Dre the artist. Gotta love the AFB'ers who think The Beatles are modern music, John Malkovich and Martin Scorcese are young, hip spokesmen that Apple needs to appeal to today's youth.
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Post by Red Shirted Ensign on May 28, 2014 15:04:26 GMT -8
Beats isn't hip-hop at all. That's Dre the artist. Gotta love the AFB'ers who think The Beatles are modern music, John Malkovich and Martin Scorcese are young, hip spokesmen that Apple needs to appeal to today's youth. Hey, Now JD...lighten up, old boy.....modern music is in my blood.....
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Mav
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Post by Mav on May 28, 2014 15:06:02 GMT -8
Cut your losses, Red, so to speak
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JDSoCal
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Post by JDSoCal on May 28, 2014 15:06:06 GMT -8
Thought the moron on CNBC was, well, moronic not sure who said it as it was on in the other room but: Yep, same ol' damned if they do, damned if they don't nonsense by Analystards. "OMG, Apple needs to spend its cash on acquisitions!"
"OMG, Apple made acquisitions, they're out of ideas!"The Re/code piece is definitely worth a read: Before anyone here forms final conclusions about this deal, ask yourself, who is smarter: Tim Cook, or the dopey interviewers and ANALystards who question it? There are a lot of things in life, that when you look at who is against it, you know you are doing the right thing. Ha ha ha.
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Mav
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Post by Mav on May 28, 2014 15:08:30 GMT -8
Anyone who compares this to Browett - and I hope there aren't any out there, though I've seen indirect hints dropped here and there around the Web - should be laughed out of the room.
Iovine's been a friend to Apple for years, and Beats products have been sold by Apple for a long time now. Apple knows Beats a hell of a lot better than they knew Browett.
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Post by phoebear611 on May 28, 2014 15:23:30 GMT -8
The haters will hate. It's exhausting to listen to these talking heads say the SOS. They aren't reporters - nor are they analysts - they are entertainers. It's all a stage and they are all egomaniacs.
More importantly, Eddy Cue and Jimmy Iovine are appearing at the Code Conference. Anyone know when they are on or if it is going to be streamed at all?
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Post by phoebear611 on May 28, 2014 15:27:28 GMT -8
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Mav
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Post by Mav on May 28, 2014 15:44:26 GMT -8
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Post by archibaldtuttle on May 28, 2014 16:04:54 GMT -8
I lightened up some holdings yesterday and today. Still very long Januaries and 2016 Leaps, but looking for a dip down into the 605 area to rebuy... if it keeps going straight up and I miss it, then so be it. I am definitely feeling we test ATHs this year.
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Post by Lstream on May 28, 2014 16:14:51 GMT -8
Jimmy slamming Samsung (who else would he be talking about?) on his first day on the job. He has my vote so far.
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Post by phoebear611 on May 28, 2014 16:21:06 GMT -8
Jimmy slamming Samsung (who else would he be talking about?) on his first day on the job. He has my vote so far. Is this streaming somewhere?
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Post by Lstream on May 28, 2014 16:25:47 GMT -8
Jimmy slamming Samsung (who else would he be talking about?) on his first day on the job. He has my vote so far. Is this streaming somewhere? The reCode interview that JDS quoted.
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Post by yellowhandman on May 28, 2014 18:30:03 GMT -8
There has been a lot of speculation that the Beats Music deals with the record companies wouldn't transfer with a change in ownership. Based on the official announcements today, that is clearly inaccurate. Furthermore, I have seen comments from record company bigwigs in NYT and FT, praising the deal and speaking very positively.
Obviously, Apple would have done its homework and probably spoken directly to the record companies beforehand. It seems the combination of Apple and Beats presents a value proposition to them. If the record companies give their full support, then Beats Music is going to take off big-time.
Also, insofar as the headphone business is concerned, Apple probably sells more Beats headphones than any other retailer in the world. They would have great clarity on the demand for the product, and it probably dawned on Tim that it made more sense to get the entire profit from those sales rather than just the retailer's cut they had been getting previously.
Time will tell, but this looks like a great deal despite the inevitable naysayers.
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Post by archibaldtuttle on May 28, 2014 19:20:20 GMT -8
Another element that I haven't seen discussed:
Increase in EPS vs cash value
We all know that the market doesn't really value Apple's cash hoard with a reasonable multiple. However, the market does seem to pay attention to an increase in their EPS.
So, by spending 3B of their cash (which the market barely valued), Apple will immediately see a $1-2 bump in annual EPS, just from the headphone business. This should be a good thing for the stock.
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mark
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Post by mark on May 28, 2014 19:47:44 GMT -8
Another element that I haven't seen discussed: Increase in EPS vs cash value We all know that the market doesn't really value Apple's cash hoard with a reasonable multiple. However, the market does seem to pay attention to an increase in their EPS. So, by spending 3B of their cash (which the market barely valued), Apple will immediately see a $1-2 bump in annual EPS, just from the headphone business. This should be a good thing for the stock. I don't understand this statement. Are you saying that Beats earns $860 to $1,720 million a year? That can't be correct.
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Deleted
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Post by Deleted on May 28, 2014 20:03:33 GMT -8
There has been a lot of speculation that the Beats Music deals with the record companies wouldn't transfer with a change in ownership. Based on the official announcements today, that is clearly inaccurate. Furthermore, I have seen comments from record company bigwigs in NYT and FT, praising the deal and speaking very positively. Obviously, Apple would have done its homework and probably spoken directly to the record companies beforehand. It seems the combination of Apple and Beats presents a value proposition to them. If the record companies give their full support, then Beats Music is going to take off big-time. Also, insofar as the headphone business is concerned, Apple probably sells more Beats headphones than any other retailer in the world. They would have great clarity on the demand for the product, and it probably dawned on Tim that it made more sense to get the entire profit from those sales rather than just the retailer's cut they had been getting previously. Time will tell, but this looks like a great deal despite the inevitable naysayers. I'm encouraged as well that the music industry appears to be embracing this. I read the other day that artists HATE Pandora, including Better Midler, who received $144 on 4M plays. I'm liking this acquisition the more I read about it. Now let's disrupt the personal audio gear with the Beats brand, which will keep its identity (a good move).
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Post by Lstream on May 28, 2014 20:05:34 GMT -8
Another element that I haven't seen discussed: Increase in EPS vs cash value We all know that the market doesn't really value Apple's cash hoard with a reasonable multiple. However, the market does seem to pay attention to an increase in their EPS. So, by spending 3B of their cash (which the market barely valued), Apple will immediately see a $1-2 bump in annual EPS, just from the headphone business. This should be a good thing for the stock. I don't understand this statement. Are you saying that Beats earns $860 to $1,720 million a year? That can't be correct. He is mixing up sales and EPS.
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Post by archibaldtuttle on May 28, 2014 20:05:52 GMT -8
Another element that I haven't seen discussed: Increase in EPS vs cash value We all know that the market doesn't really value Apple's cash hoard with a reasonable multiple. However, the market does seem to pay attention to an increase in their EPS. So, by spending 3B of their cash (which the market barely valued), Apple will immediately see a $1-2 bump in annual EPS, just from the headphone business. This should be a good thing for the stock. I don't understand this statement. Are you saying that Beats earns $860 to $1,720 million a year? That can't be correct. Yes, that's what I'm saying. According to Asymco, Beats' headphones business was estimated to bring in $1.5 Billion in revenue in calendar 2014 (prior to this sale). Given their prices, I think they have at least as good a margin as Apple. At 40% margin, that's 600 million in earnings in the first year, and at 50% margins it's 750 million. And that's assuming there is no bump in sales that occurs because of this acquisition. If Apple uses their in-store marketing muscle to push Beats this holiday season, I could see them bringing in far more than 1.5 Billion in Beats sales. And then there's 2015....
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