Apple To Acquire Beats Music & Beats Electronics For $3 Billion

Apple has officially closed on a deal to purchase Beats Electronics for $3B. 

Apple announced the deal in an official press release:
Apple today announced it has agreed to acquire the 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.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”

The deal marks the largest acquisition ever made by Apple including its $400 million deal in 1996 to purchase the company NeXT which brought Steve Jobs back to Apple.

Dr Dre All But Confirmed Beats/Apple Deal

Although we haven't heard an official confirmation from Apple or Beats Electronics about a possible Apple buyout, after news broke that the Apple was going buy music streaming company Beats Electronics for $3.2 billion. Dr Dre, one of Beats’ co-founders seems to have other views about transparency.



Playing around with some other folks, Tyrese Gibson starts out the video with a reference to the Beats/Apple news. “Billionaire boys club for real, homie…. The Forbes list just changed!…”

“In a big way,” rejoined Dr Dre.“The first billionaire in hip hop, right here on the motherf*ckin West Coast!” Dre says, standing behind Tyrese Gibson laughing and hollers off camera.

Shit just got real, yo.

Apple CEO Tim Cook Acknowledges BlackBerry Data Efficiency

Last night, while covering the Apple Q2 results for iMore, I heard Tim Cook say something that I don't ever quite recall anyone from Apple ever saying before.

In response to a question about carrier subsidies on iPhones, and potential pressure, Cook said the following as part of his reply:

"Our engineering teams work extremely hard to be efficient with data and differently than some others. And we believe as a result of this iPhone has far better data efficiently compared to other smartphone that are using sort of an app rich ecosystem. Finally, and this is most important, iPhone is the best smartphone on the planet to entice a customer who is currently using a traditional mobile phone to upgrade to a smartphone. This is by far the largest opportunity for Apple, for our carrier partners and its a great fantastic experience for customers. So its a win win win there"

Sure, he didn't actually say "BlackBerry" anywhere. But his wording was carefully chosen, as usual. He said Apple is more efficient than other "app rich" ecosystems, meaning Android. By saying this, he clearly recognizes BlackBerry is more efficient.

But what surprised me even more was how he even acknowledged the importance of data efficiency at all. In some ways its nice to see Apple acknowledge the importance of something that RIM has been so good at for so long. But it's also clear that consumers don't really care that much about data efficiency.

Apple Conference Call To Be Held Addressing Excess Cash In The Sum Of $100 Billion Dollars

 

Apple CEO Tim Cook has admitted his company has too much cash lying around. Way too much. In fact, it has nearly $100 billion just resting in the bank. Cook has said that it’s unncessary to have that much dough without doing anything with it. He noted that it should be spent on advancing the company. Apparently is has come up with a solution. 

That solution will, assumedly, be announced tomorrow. Apple has invited media and analysts to a conference call tomorrow. The call will be held tomorrow at 9:00 AM Eastern Time. In the description of the call, Apple says that CEO Tim Cook and CFO Peter Oppenheimer will be discussing the state of its cash reserves. Expect a lot of news, since it’s scheduled to last three hours.

According to the conference call announcement, Cook and Oppenheimer will “announce the outcome of the Company’s discussions concerning its cash balance. Apple will not be providing an update on the current quarter nor will any topics be discussed other than cash.” One of the questions is whether or not Apple might reinstate its dividends to stockholders. The last dividend was paid in 1995.