& cplSiteName &

Apple Confirms Beats Buy for $3B

Sarah Thomas
5/28/2014
50%
50%

Nearly three weeks after Dr. Dre's infamous video-selfie news leak, Apple has confirmed its acquisition of Beats for $3 billion, slightly less than originally thought, but still its biggest M&A deal to date. (See Apple Buying Beats for $3.2B: Dr. Dre & Tyrese.)

Apple Inc. (Nasdaq: AAPL) confirmed the acquisition on Wednesday evening, a few days before its annual developers' conference where more big news -- including a push into the smart home -- is expected.

The iPhone maker is getting both Beats Music, its subscription streaming service, as well as Beats Electronics, the brand's line of headphones and speakers popular with youngsters. It's also getting two new executives, Beats co-founders Jimmy Iovine and Dr. Dre, the self-proclaimed richest man in hip hop.

Iovine said in a release that his company was inspired by Apple's "unmatched ability to marry culture and technology" when it was formed in 2008, and Apple CEO Tim Cook noted that the pair will "continue to create the most innovative music products and services in the world."

Since the impending deal was first unveiled in early May, there's been a lot of talk over why Apple would splash down so much cash on a headphones brand that some say has lost its cache, especially considering it has its own iTunes Radio streaming service. The answer, according to the Cupertino giant, seems to have the most to do with its streaming service and catalog of music. (See Apple iTunes Radio Brings the Beat to LTE.)

Apple said it will offer Beats products in its online store, retail outlets, and select resellers, but, in announcing the acquisition, talked the most about the talent on the team and how it will bolster its music line up with its subscription service as well as within iTunes Radio and the iTunes store itself.

The deal is made up of $2.6 billion in cash and $400 million to vest over time. Its subject to regulatory approval, but Apple expects it to close in the fourth quarter.

— Sarah Reedy, Senior Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/29/2014 | 2:23:06 PM
Suggested name for the new company
@XeniJardin has a good idea.
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
5/29/2014 | 2:00:11 PM
Re: Apple Confirms Beats Buy for $3B
@Dan, that seems to be their focus and you make good points.

We will have to watch and see if that is truly where the value is created as this goes forward.
DanJones
50%
50%
DanJones,
User Rank: Blogger
5/28/2014 | 11:48:54 PM
Re: Apple Confirms Beats Buy for $3B
You're missing what they're getting in terms of powerhouse music and film people. Take a look at what Jimmy Iovine has done in music and film.

Then add in Dr Dre as a hip hop powerhouse. I suspect this buy is as much people driven as a technology buy.
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
5/28/2014 | 8:37:50 PM
Apple Confirms Beats Buy for $3B
Sarah, I am with you on this; I don't see the need to buy them to stream music.

I believe it is much more strategic.  In reading the interview, I would see a more "hidden" agenda in the comments on talent, and what they can create for the future.  There must be more to this deal, in my way of thinking.
Educational Resources
sponsor supplied content
Educational Resources Archive
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 28, 1:00PM EDT
Gigabit 101
Will Barkis, Senior Technology Analyst, Orange
UPCOMING COURSE SCHEDULE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (0) comments


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
LRTV Custom TV
Huawei Optical Innovation 2016

9|6|16   |     |   (0) comments


Highlights of the 2016 Huawei Optical Innovation forum.
LRTV Huawei Video Resource Center
Are You Ready for Huawei Connect 2016?

8|31|16   |     |   (0) comments


Join us for an exclusive sneak peak of Huawei Connect, an integrated conference for the global ICT ecosystem taking place in Shanghai.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Keeping Your Tech Career Going After 50
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/21/2016
Time to Shut Up About 'Dumb Pipes'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
Comcast Will Go Wireless in 2017
Mari Silbey, Senior Editor, Cable/Video, 9/20/2016
Sprint CEO: We'll Lease Spectrum as Soon as Possible
Dan Jones, Mobile Editor, 9/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
You Thought Your Customer Service Was Unreliable... Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.