Light Reading
Several sources, including Dr. Dre himself, suggest the iPhone maker is splashing down $3.2 billion to acquire Beats for its streaming music service and wearables.

Apple Buying Beats for $3.2B: Dr. Dre & Tyrese

Sarah Reedy
5/9/2014
50%
50%

Apple is reportedly ready to spend $3.2 billion to buy Beats, AT&T's streaming music partner, according to several sources, including Dr. Dre himself.

The owner of Beats hinted at the acquisition in a "video selfie" with the actor Tyrese posted Friday morning. Dr. Dre said he was set to become the "first billionaire in hip hop." And Tyrese posted the clip on Facebook (since removed) with the caption: "Dr Dre ON THE night his deal went public that he did with Apple 3.2 BILLION!!!!"

Forbes pointed out that the deal would actually net him around $800 million but still would make him hip-hop's richest man.

Hip-hop hierarchy aside, the deal is notable because, for one thing, it will be one of the largest acquisitions in Apple Inc. (Nasdaq: AAPL)'s history, showing what a big bet it is placing on streaming music. It's also potentially good news for AT&T Inc. (NYSE: T), which revealed just yesterday that it's considering shutting down Cricket's Muve Music, likely in favor of its partner's service. (See Apple iTunes Radio Brings the Beat to LTE and AT&T to Turn Down Muve's Music?)

Jefferies analyst Peter Misek also suggests that the deal could help Apple out in the emerging category of wearables. He writes in a research note:

Apple would also gain what we believe is an amazing creative team for the design and creation of hardware, primarily accessories that we believe could be very valuable in the context of the wearables market. We believe such a team could help the development of a future iWatch and other wearable products from Apple. Those two assets and capabilities alone may be worth the purchase price.

Misek also wrote that this could jumpstart competition in the music business with a response from Amazon.com Inc. (Nasdaq: AMZN) and Google (Nasdaq: GOOG). For example, he suggests that Spotify could be an attractive acquisition target for Amazon.

All this activity could really kickstart a once-stagnant mobile music market. But it remains to be seen if that's a positive or negative thing for wireless operators, which might gain either partners or competitors for streaming services.

— Sarah Reedy, Senior Editor, Light Reading

(35)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 4   >   >>
SReedy
50%
50%
SReedy,
User Rank: Blogger
5/28/2014 | 5:21:47 PM
Acquisiton official
It's finally official, and the price tag wasn't far off too: Apple is acquiring Beats for $3B; it's biggest ever acquisition. http://www.cnet.com/news/apple-finally-confirms-its-buying-beats-for-3b/
FakeMitchWagner
50%
50%
FakeMitchWagner,
User Rank: Lightning
5/17/2014 | 4:43:46 PM
Re: Confusing
iPhones and iPads are amazingly rugged gadgets. I've dropped 'em, the dog licks them, the cat thinks they're toys, and they just keep going. 

Some people put theirs in cases to keep them looking new. I like the nicks they accumulate over time. They're like a good, worn leather jacket. 

 
SReedy
50%
50%
SReedy,
User Rank: Blogger
5/16/2014 | 11:26:52 AM
Re: Confusing
I like the look of my bright pink 5C! Just not the screen that shatters easily. Quality is more important than appearances for something as important as a phone you use every day, IMO, but I'm not a hip tween either.
FakeMitchWagner
100%
0%
FakeMitchWagner,
User Rank: Lightning
5/14/2014 | 3:43:27 PM
Re: Confusing
Appearance of quality is more important than actual quality. Skeptics would say that's been Apple's strategy from the beginning. 

And Apple has always been as much about fashion as engineering. Apple would use the words "style" or "design" instead of "fashion."

Good point regarding the Burberry executive. That combined with the Beats acquisition (has that been confirmed yet?) suggests Apple is going after market segments: Doubling down on a traditional segment of affluent adults, while also pursuing a younger, more hip demographic. 

The fact that I used the word "hip" demonstrates I am not. 
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
5/14/2014 | 3:15:35 PM
Re: Confusing
I'm not so sure that the price difference between the 5C and 5S is the big problem. I think the 5C just *looks* bad and cheap compared to the 5S -- and so people aren't willing to compromise their fashion and also get a slightly less functional iPhone. Beats is genius in a way because the electronic guts of their products are objectively inferior -- but somehow they've convinced a lot of people that their products are worth more than the sum cost of the components. Apple could do well if it can pull this off with other electronic wearables it might have in the pipeline. I think it's also interesting that Apple has a new exec from Burberry -- so it's definitely thinking about how to market it's products as fashion items instead of utility gadgets.
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
5/14/2014 | 12:31:11 PM
Re: Confusing
It's just amazing to me how the "youth" market is growing so large that Apple wants to (and and afford) to buy Beats for $3.2B. All of my friends love all kinds of music they say, adding "except rap" so obvioiusly it's not by peers spending anything on Apple's new toys. But, if you've got the money and want to move your products to a younger crowd, that's probably the way to head.
FakeMitchWagner
50%
50%
FakeMitchWagner,
User Rank: Lightning
5/13/2014 | 1:34:33 PM
Re: Confusing
mhhf1ve - I wonder whether the iPhone 5C suffers simply from being insufficiently less expensive than the 5S. The 5C starts at $99 subsidized, the 5S at $199. Considering the consumer is also paying monthly phone charges, the consumer may decide that buying the underpowered phone for not that much less is false economy. 

Apple may be buying Beats not for its design sense in general, but for its appeal to a younger demographic than Apple's existing customer base. 
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
5/12/2014 | 7:20:02 PM
Re: Confusing
Some folks speculate that apple isnt so focused on the headphones as much as Beats' "fashion" sense in wearables. I'm not sure I buy that reasoning, though, because it's tough to see how oversized watches or fitbit-like devices couldn't be done by Apple's existing designers. But I guess I can understand that Apple's designers are optimising for how the internal mechanisms fit into a box (usually in a minimalistic way), not how to necessarily make a really fashionable accessory. I suppose this is Apple's first step away from its usual minimalistic design. I wonder if Beats had designed the iPhone 5C -- would it be more popular now?
FakeMitchWagner
100%
0%
FakeMitchWagner,
User Rank: Lightning
5/12/2014 | 5:23:38 PM
Re: Confusing
Apple may well keep the Beats name around. It'd be the first time in a long time that Apple has used another brand. The last times were Filemaker and Claris, and that's ancient. 

As I think about it, I think Apple did this for several reasons:

- Short-term market share and profits. 

- Earphones are an integral part of the smartphone experience. It's like a keyboard or a mouse for a notebook or desktop. 

- Buying marketing smarts for a younger generation. 

- Possibly buying connections to the music industry. 

- Buying a streaming service. Even if the market share is small, the underlying service might be sound. Siri was a niche application when Apple bought it. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
5/12/2014 | 4:03:14 PM
Re: Apple Audio Connectors
If Apple really wants to lead in digital audio innovation, it would be investing in projects like Neil Young's Pono.
Page 1 / 4   >   >>
Flash Poll
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
LRTV Huawei Video Resource Center
How Telefonica Spain Considers Antenna Selection for LTE Network Deployment

7|4|14   |   2:19   |   (0) comments


Tony Conlan, Global CTO of RAN, Telefonica, shares his opinion on antennas in LTE network deployment: Tower space is the premier requirement on antennas; reliability is important to reduce OPEX; and EasyRET solution will be helpful for antenna maintenance.
LRTV Huawei Video Resource Center
dtac Thailand: Multi-band Antenna & Capacity Solution for a Better MBB Experience

7|3|14   |   3:45   |   (0) comments


With the development of LTE, tower space and load are limited for new antenna, but users' capacity requirements are growing fast. To provide a better MBB experience, Panya Vechbanyongratana from dtac Thailand shared his experiences and antenna requirements.
LRTV Documentaries
BTE Panel: Network of the Future

7|2|14   |   1:00:57   |   (0) comments


Full-length video of the ATIS Panel Discussion: 'How Far Away Is the Network of the Future & What Does It Look Like?' from the Big Telecom Event (BTE) in Chicago.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Microsoft to Axe 12,500 Ex-Nokia Employees
Sarah Reedy, Senior Editor, 7/17/2014
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Apple Earnings: Strong iPhone Sales, iPad Sales Slump, $7.8B Profit
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/22/2014
Cisco Puts a Fog Over IoT
Sarah Reedy, Senior Editor, 7/23/2014
Like Us on Facebook
Twitter Feed