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What Would Make Apple Pay $3.2 Billion For Beats Audio, Facebook Perhaps?

May 8 2014, 7:31pm CDT | by

Word, now confirmed by the Financial Times, Bloomberg, The Wall Street Journal, and The New York Times, that Apple is in talks with Beats Audio about an acquisition to the tune of $3.2 billion is...

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11 weeks ago

What Would Make Apple Pay $3.2 Billion For Beats Audio, Facebook Perhaps?

May 8 2014, 7:31pm CDT | by

Word, now confirmed by the Financial TimesBloombergThe Wall Street Journal, and The New York Times, that Apple is in talks with Beats Audio about an acquisition to the tune of $3.2 billion is surprising only because of the price.null null . And iTunes Radio is far from a Spotify or Pandora killer, so the new Beats Music streaming service could bolster it and declining iTunes sales.

But for a company that was valued at $1 billion at the time of the Carlyle Groups investment of $500 million last September,null . Apple has never spent a billion buying another company, something that rivals Google and particularly Facebook can’t say. Facebook, in particular, stacks up as a likely suitor. It has been on a spending spree of late, swiping up WhatsApp for $19 billion and Oculus VR for $2 billion. And it could be said that it got into the big-spending picture back in 2012 when it acquired Instagram for $1 billion (which now seems almost reasonable.)

And, like Apple, Facebook has a cool problem. Instagram and WhatsApp were both attractive because of their teen appeal. Beats would bring not only youth but some amount of urban street cred as well. And Facebook has never had the really tight linkage with music that Twitter and especially Myspace have enjoyed.

But Beats is really much better aligned with Apple than any other tech company I can think of. Both have succeeded at launching product line after product line that are a cut above its major competitors in both quality and price. Iovine claims having had a tight rapport with Steve Jobs and even pitching him on a streaming service a decade ago. That man is money!

And the new Beats Music service has been well-received for its innovative approach to curation, thanks in large part to creative director Trent Renzor. The Nine Inch Nails frontman turned go to soundtrack composer (The Social Network is particularly apropos here) could well become an important part of Apple’s brain trust along with Dre and Iovine. Despite Apple’s investment in music sales stemming form Jobs, the subscription and streaming models are growing and direct music sales are declining. Tim Cook must be loyal to both the past and the future.

null . In a way, Apple may need Beats more than it needs the Burberry marketing brass or the host of medical technologist it has recently hired. For an iWatch to be a hit, it will have to be cool, and headphone tech has certainly been a test ground for wearables. Maybe Apple can get Run DMC to do its next ad campaign?

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Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told today. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was b ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Mini ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the sout ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in com ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year invo ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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