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Apple in negotiations to buy Beats Audio for $3.2 billion?

Posted: , by Alan F.

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Apple in negotiations to buy Beats Audio for $3.2 billion?
Apple is in negotiations to buy Beats Audio for $3.2 billion, according to rumors circulating on Thursday afternoon. The deal could be announced as soon as next week. If announced, it would be the largest acquisition ever by Apple. The maker of premium headphones recently started a streaming music service that competes with Apple's own iTunes Radio.

HTC had originally purchased 50.1% of Beats in 2011 for $300 million and started offering phones with special Beats Audio software and branded earphones. Eventually, HTC stopped offering the earphones due to cost. In two transactions in 2012 and last year, the Taiwan manufacturer divested its holdings in the company.

Beats was founded by music producer Jimmy Iovine, and rapper Dr. Dre. Including a $500 million investment from the Carlyle Group, Beats Audio recently had a value of $1 billion, which means that Apple is either about to overpay big time for the company, or Beats Audio has tripled in value over the last few months.

source: NYTimes via BusinessInsider

98 Comments
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posted on 08 May 2014, 18:22 16

1. toiletcleaner (Posts: 189; Member since: 10 Oct 2012)


iBeats? no iThanks

posted on 08 May 2014, 19:48 1

31. akki20892 (Posts: 3463; Member since: 04 Feb 2013)


imee itoo

posted on 10 May 2014, 09:09

97. sgodsell (Posts: 1237; Member since: 16 Mar 2013)


Now we know why Beats took back all the beats stuff from HTC and bought back 265 million dollars off of HTC recently. They knew they were going to sell to Apple. How good would it be if the competition was also using beats on their phones.

posted on 10 May 2014, 09:22

98. sgodsell (Posts: 1237; Member since: 16 Mar 2013)


I should have said beats bought back all the shares that HTC bought from beats originally. Which was only a few months ago. I think they beats was in talks with Apple at that time and knew that they were going to strike a deal.

posted on 08 May 2014, 20:50 2

49. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


Toilet cleaner

Wth lmfao what a name and avatar

posted on 08 May 2014, 22:05 1

68. vincelongman (Posts: 1176; Member since: 10 Feb 2013)


Beats by Jobs?

posted on 09 May 2014, 00:03 1

81. Nexus_bear (Posts: 32; Member since: 19 Nov 2013)


I Agree!!! I will sell my Mixrs and Pro head phones both!!! no!!!

posted on 09 May 2014, 01:01 5

84. SleepingOz (unregistered)


Why not? Both are overhyped and overpriced POS.

posted on 09 May 2014, 09:58 1

94. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)


Yeah, I'd have to agree to be honest. Beats Audio must've been worth that 1 billion due to branding sales, because their products really aren't above any of the others...

posted on 08 May 2014, 18:23 2

2. shead202 (Posts: 44; Member since: 02 Nov 2013)


HTC actually invested 300 million and made 415 million in return. I don't like Beats personally but I think it's a great deal for Apple. It's like the rich gets richer with this type of deal.

posted on 08 May 2014, 18:26 3

3. sipha (Posts: 266; Member since: 12 May 2012)


Dr Dre may finaly pass JayZ and P.daddy's net worth with this..

posted on 08 May 2014, 18:26 2

4. nctx77 (Posts: 505; Member since: 03 Sep 2013)


Cook/Dre, TAKE MY MONEY!!!!!!!!

posted on 08 May 2014, 18:44 15

13. maccess (Posts: 611; Member since: 16 Jan 2013)


Very sad..

posted on 08 May 2014, 22:48 1

74. InspectorGadget80 (Posts: 6487; Member since: 26 Mar 2011)


very very sad and he will be broke. 300$ could help pay bills and lots of other stuff.

posted on 08 May 2014, 20:23 7

42. fanboy1974 (Posts: 1195; Member since: 12 Nov 2011)


That's the problem; their going to take your money.

posted on 08 May 2014, 18:29 7

5. StanleyG88 (Posts: 76; Member since: 15 Mar 2012)


Typical Apple, why compete when we can just buy the competition.

posted on 08 May 2014, 18:33 5

7. Ninetysix (Posts: 1610; Member since: 08 Oct 2012)


I know right...

http://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Google

vs

http://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Apple

posted on 08 May 2014, 18:36 7

9. Sauce (unregistered)


Ouch…..

Ninety, take it easy! Don't smack this ignorant fool around that hard lol.
He'll call his anti-Apple crowd on you. Matter-a-fact, I think he already did.

posted on 08 May 2014, 18:38 6

11. Ninetysix (Posts: 1610; Member since: 08 Oct 2012)


No worries..it's wiki so it must be fake :)

posted on 08 May 2014, 21:50

61. engineer-1701d (Posts: 936; Member since: 13 Mar 2014)


Its matter or fact in your case

posted on 08 May 2014, 18:58 5

15. Zero0 (Posts: 583; Member since: 05 Jul 2012)


Difference: Google typically buys for technologies.

Apple is buying a brand. Beats headphones are not particularly good from an audio standpoint. They have a big name and solid industrial design. Incidentally, Apple has both of those things on their own. Apple could crush Beats if they really wanted to do so.

posted on 08 May 2014, 19:02 5

18. Martin_Cooper (Posts: 404; Member since: 30 Jul 2013)


Oh and google bought NEST for the technologies? They could also crush them if they wanted. Dude you should all relax and stop crying over every apple related news. All big tech companies buy smaller ones, For their own reasons. And you and me have no idea what exact those reasons are and probably never will.

posted on 08 May 2014, 19:07 3

21. StanleyG88 (Posts: 76; Member since: 15 Mar 2012)


NEST did not compete with Google.

posted on 08 May 2014, 19:47

30. 0xFFFF (Posts: 3059; Member since: 16 Apr 2014)


Well over 90% of tech buyouts is to give the smaller company an exit strategy so the giant VC/investment bank machine keeps running.

This is likely the case with Apple/Beats as well.

posted on 08 May 2014, 20:12

40. Napalm_3nema (Posts: 936; Member since: 14 Jun 2013)


Call me when they have three semiconductor firms in the fold designing the best mobile processor on the planet.

posted on 08 May 2014, 20:11 3

39. kryme (Posts: 140; Member since: 24 Oct 2013)


lol that was harsh..... tho i get ur point..... but google is buying start ups.... apple buying company to avoid competition..... youtube waze android there were all start ups... beats audio could bring the heat to apple and they dont want that.... hope u r smart enough to understand the difference.... both campany buy start ups but apple buying beats is just to kill competition

posted on 08 May 2014, 20:13 2

41. Ninetysix (Posts: 1610; Member since: 08 Oct 2012)


coughcoughMotorolacoughcough...

sorry..got something stuck in my throat..

posted on 08 May 2014, 20:37 12

46. Run.n.Gun (Posts: 24; Member since: 06 Nov 2013)


Probably a piece of apple

posted on 08 May 2014, 20:51 4

50. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


Lmfao

That was epic

+1

posted on 08 May 2014, 21:20

55. androiphone20 (Posts: 1442; Member since: 10 Jul 2013)


Funny you mentioned Waze, I think you should look it up again. Waze was competition.

posted on 08 May 2014, 22:01

64. Sauce (unregistered)


Google is buying start ups….because? You didn't finish your reason why they buy. Waze was a HUGE threat to Google, which is why Google bought them.

Beats makes more money than BEATS does ONLY selling their ear pods LOL.

P.S. There is no competition involved between Beats and Apple lol….

posted on 08 May 2014, 22:12 2

72. PBXtech (Posts: 980; Member since: 21 Oct 2013)


"The maker of premium headphones recently started a streaming music service that competes with Apple's own iTunes Radio."

Don't really know, just reading the article.

posted on 09 May 2014, 08:05 1

90. marbovo (Posts: 648; Member since: 16 May 2013)


I really don't believe that I'm reading people saying that Google bougths were right ans apples not...

posted on 09 May 2014, 08:20

92. Ninetysix (Posts: 1610; Member since: 08 Oct 2012)


It's freaking hilarious :)

posted on 08 May 2014, 20:32

45. stealthd (Posts: 966; Member since: 12 Jun 2011)


Except they're not competitors. iTunes Radio and Beats music service aren't the same kind of service.

posted on 08 May 2014, 18:30 19

6. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


Both Apple and Beats are overrated and a hype company

posted on 08 May 2014, 18:36 13

8. Lt.Green (Posts: 376; Member since: 13 Mar 2014)


Agreed, It's no different from any equalizer available in the Play Store.

posted on 08 May 2014, 18:37 5

10. Sauce (unregistered)


BRB, going to go buy said equalizers in play store and wrap em' around my head!

posted on 08 May 2014, 21:55 2

63. engineer-1701d (Posts: 936; Member since: 13 Mar 2014)


Sauce if u get skull candy its the same sound I have a $300 set of beats studio and Dolby ime2 ear phones and A pair of skull candy I love my music but skull and beats same my Dolby is best got them after my beats in ear failed. Wrap that around your head

posted on 08 May 2014, 22:03 1

65. Sauce (unregistered)


Engineer, I have never owned a *good* pair of Skullcandy headphones (just the ear pods you buy at retail stores), but I use SoL Republics. They're amazing. The physical build quality and the audio quality combined is phenomenal.

posted on 09 May 2014, 21:26

96. DnB925Art (Posts: 226; Member since: 23 May 2013)


Now THIS I agree with you. SOL Republic > Beats. I have both the Tracks HD and Master Tracks XC. The Master Tracks XC are some of the best headphones I have owned, studio quality with excellent soundstage and accurate mids/highs with appropriate bass levels.

posted on 08 May 2014, 19:46 5

29. akki20892 (Posts: 3463; Member since: 04 Feb 2013)


Dolby Is Best....

posted on 08 May 2014, 22:48

75. InspectorGadget80 (Posts: 6487; Member since: 26 Mar 2011)


I prefer BOSE OVER BEATS. Crisp clearity.

posted on 09 May 2014, 00:58

83. Cicero (Posts: 366; Member since: 22 Jan 2014)


Or JBL.

posted on 09 May 2014, 08:19

91. marbovo (Posts: 648; Member since: 16 May 2013)


I don't have it, but a lot o people say that bang & olufsen are great

posted on 08 May 2014, 18:40 11

12. FriendsOfSamsung (unregistered)


Another reason to stay away from Apple

posted on 08 May 2014, 19:41 5

26. InspectorGadget80 (Posts: 6487; Member since: 26 Mar 2011)


And to stay away from iBEATS.

posted on 08 May 2014, 19:46 4

28. Ninetysix (Posts: 1610; Member since: 08 Oct 2012)


Should have named yourself NspectorGadget80. You probably have nightmares at night because of that "i" in your name. Sorry broski.

posted on 08 May 2014, 19:59 5

36. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


You should become the ROYALLY to Apple

posted on 08 May 2014, 22:49 1

76. InspectorGadget80 (Posts: 6487; Member since: 26 Mar 2011)


oh yeah thanks for reminding me. and beside it's a old cartoon. think i should change to NspectorGadget "it's all cool bro".

posted on 09 May 2014, 08:21

93. marbovo (Posts: 648; Member since: 16 May 2013)


careful, because apple can sue you because of your iname... lol

posted on 08 May 2014, 18:53 11

14. Planterz (Posts: 813; Member since: 30 Apr 2012)


The tech behind Beats is worthless. Only the name has value, and only because people are gullible enough to believe it.

posted on 08 May 2014, 22:51

77. InspectorGadget80 (Posts: 6487; Member since: 26 Mar 2011)


and a lot of teens this generation don't realize who is Dr. Dre. DR DRE co founder and member of NWA along with EASY E ICE CUBE & MC Ren. Then move to DEATH ROW RECORDS as producer/rapper.

posted on 08 May 2014, 18:58

16. Yubnub (Posts: 100; Member since: 23 May 2013)


-_____- gtfo

posted on 08 May 2014, 18:59 1

17. chebner (Posts: 140; Member since: 17 Oct 2011)


Beats certainly aren't my first choice for headphones, but they're certainly better than the crap earbuds that come with iPhones (and 90+% of all other phones too). Maybe with better headphones iPhans will realize how CRAPPY their iTunes music sounds, and hopefully demand better.

posted on 08 May 2014, 19:04

20. Martin_Cooper (Posts: 404; Member since: 30 Jul 2013)


I agree with you. Maybe they want to buy them so they can provide better quality headphones with iphones. Or maybe they wanted a big brand name in headphones industry that they can control for their own reasons. Dont forget beats have many patents around sound so that might be a good reason.

posted on 08 May 2014, 19:12 1

22. StanleyG88 (Posts: 76; Member since: 15 Mar 2012)


If they just wanted a Brand Name, they could have put iFones on any crap headFones and their Lemming followers would have eaten them up.

posted on 08 May 2014, 19:03 11

19. NokiaFTW (Posts: 2014; Member since: 24 Oct 2012)


One overrated company trying to buy another overrated company. Nice...

posted on 08 May 2014, 22:11 3

70. networkdood (Posts: 6267; Member since: 31 Mar 2010)


Exactly - well, said....

posted on 08 May 2014, 19:25 2

23. 0xFFFF (Posts: 3059; Member since: 16 Apr 2014)


Beats? Hype, nonsense and lies for $3.2B? All this represents is really expensive really effective way to dilute the brand value of Apple.

What an epic fail. This acquisition must have been pushed on them by the bankers.

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