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Apple to Announce Beats Acquisition This Week, Drops Price to $3 Billion

Apple's rumored acquisition of Beats will indeed happen, just for a slightly reduced fee, according to a report from the New York Post this evening. The acquisition, which was originally reported to be roughly $3.2 billion for both Beats companies -- the headphone and consumer electronics division as well as the streaming music service -- will now happen at $3 billion.

Since the acquisition was originally reported on May 8, Spotify -- the leading player in the subscription music field -- announced that it had 10 million paying subscribers, and this could have given Apple additional negotiating leverage.

Still, the company is understood to place a high value on the profitable Beats audio business which retails headphones — costing up to $450 — and speakers around the globe.

That business recorded sales of $1.3 billion in 2013.

“Apple hadn’t even begun its due diligence process when news of the number came out,” one source close to the talks said Tuesday.
The paper notes that both Jimmy Iovine and fellow Beats co-founder Dr. Dre are expected to attend Apple's Worldwide Developer Conference next week. Dre is expected to net somewhere around $750 million from the sale as he currently owns approximately 25 percent of the company.

Top Rated Comments

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16 months ago
Pity...was hoping the deal had fallen thru.
Rating: 64 Votes
16 months ago
Tim Cook: "One more thing. We bought Beats!"

Rating: 47 Votes
16 months ago

Tim Cook: "One more thing. We bought Beats!"

Replace with
Rating: 44 Votes
16 months ago

Tim Cook, "One more thing. We bought Beats!"

I'd rather people booed.
Rating: 38 Votes
16 months ago
what one billion dollars looks like:

Rating: 33 Votes
16 months ago
Hope they don't waste time on this at the WWDC Keynote.
Rating: 27 Votes
16 months ago
Yes! Love that this is coming true and eating at the hearts of all the buffoons on these forums that spewed nonsense and subliminal racism over the past 2 weeks. A few parting thoughts:

1.) The Beats Music app is awesome on iPhone and iPad and makes iTunes look tired and old
2.) Beats Music features every genre of music, not just hip-hop for you ill-informed
3.) The executive team at Apple is smarter than you and is likely to have thought everything through before forking over $3,000,000,000. Certainly more than your sensationalistic opinions on Forums.
4.) Jimmy Iovine and Dr. Dre built a billion dollar business together - what have you done over the past 6 years?
5.) No one cares what you "audiophiles" think sounds the best. Hilarious how all you guys just throw out random brands that no one has ever heard of and declare them the best quality. Perhaps those brands should learn from Beats and figure out how to get people to spend $200-$400 on headphones to drive $1B in revenue per year. That's what Apple cares about.
Rating: 22 Votes
16 months ago
That's still 3 billions too many.
Rating: 17 Votes
16 months ago
Execs: 'We need something to boost our Music division. What should we do?'.
Tim: 'Beats me.'

(I haven't read that from anywhere, but I doubt I'm the first to make that up).
Rating: 15 Votes
16 months ago

Is it because he's black? What's the hate for? :confused:

Beats is a company, neither black nor male, and inspires hate due to being overvalued and underwhelming. It's as simple as that.
Rating: 15 Votes

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