It’s official: Apple will acquire Beats for $3 billion

May 29, 2014

    apple beats

    Recent rumors of a Beats by Dr Dre acquisition by Apple have the industry holding their breath. Will this really happen? Why? Such questions are to be answered in due time, but now we are certain this deal is to go through.

    The Cupertino giant has confirmed the acquisition of the headphone manufacturer. Some of the details were discussed at USA Today’s offices, where Tim Cook and Eddy Cue met with Beats co-founders Dr Dre and Jimmy Iovine.

    The deal is to go down for a mighty $3 billion, of which $400 million will be granted over time. In fact, this acquisition would be the largest Apple has ever seen. Apple is not one to make such huge investments in other companies, so what could have gotten into them?

    “For the future”

    The acquisition has not been kept secret very well, and neither has Apple’s intentions. Apple makes it very clear that this acquisition is all about “the future”.

    When rumors of this acquisition first emerged, it was believed that Apple didn’t have a huge interest in the company’s headphones, but they wanted to boost their music presence with Beats Music. Now it seems as though Apple really cares about neither.

    “We’re gaining rare talent, a fast-growing subscription service and premium headphones that have done incredibly well, but none of those are the reason for doing this deal. It’s the future we are betting on” – Tim Cook, Apple CEO

    Tim Cook also mentions some “great things” are to come from Apple, and we are going to love them. Some of these changes are said to take place at Apple’s WWDC, this June 2nd.

    Beats Wireless By Dre Review Hands On AA-16

    So… what will Apple do with Beats?

    The short answer is: we have no clue! If it’s not really about the headphones or the cloud music subscription service, it must be about some new project Apple has in mind for the famous rapper’s company. In which case, it’s really anyone’s guess what will happen next.

    What do you think the iPhone maker has in store for us? Maybe Beats Music implementation into iTunes? Bundled headsets? One thing we do know for sure – Apple is saying the brand will stay untouched. This is very smart, as Beats has a very strong following.

    Comments

    • Anonymous

      The iLawyer. Sues you faster than ever!

    • Shark Bait

      Brand???
      Apple is loosing some of its cool factor and looking to boost it. Beats is well established in the wearables game where apple is surely looking to break into.

      • Corbin Crutch

        Wearables? Headphones….. That’s almost like calling a cell phone holster for your belt a wearable…. I know technically you’re right but….. IDK. Doesn’t feel right

        • Shark Bait

          its a start though right? just think 100 years ago it would have seemed strange to strap a radio to your head, and now were starting to strap TV’s to our heads, to me it shares some similarities there.

          My real point is beats is as more a fashion brand than anything else, something that is important in the wearable game

          • Corbin Crutch

            I guess so, although it makes MUCH more sence when talking about design. I personally hate their design but it what sells the headphones. That and the “social currency” like Steve Jobs mentioned about Apple. Which is funny about this purchase. You do have a point there. Let’s look at the Moto 360. That thing is a beauty and BECAUSE of that SOOOO many people are looking to buy it without too much details yet. (Also, I appologize if I sounded mad in the previous post. I try not to be the pissy guy)

            • Shark Bait

              lol no need to apologize, i enjoy a good discussion.

              I agree with your moto 360 statement, it looks fantastic, beautifully refined, and I hope it sells well, it could be the iphone of wearables and start the revolution. Its all about the design, and its more important in this sector than it is phones because it will constantly be on show.

            • Corbin Crutch

              Cool stuff. :)

              And I think another reason why it will do so well is Android Wear. I know that one is obvious but let’s look at the Gear line up. I personally like the idea of a mashup between wearable and fitness tracker and I think that the Gear had great potential and to a certain degree hit that mark – HOWEVER, watches were designed from the beggining with a glance in mind. Their UX is based like smartphones, glance for info but to do anything you have to dive slightly deeper; removing the helpfullness to the watch slightly. With Android Wear, things revolve around that idea of glancablitiy. If Apple wants to work better with watches, Siri is going to need a HUGE HUGE HUGE HUGE update with relevant and contextual data to work with this idea. I really like Cortana for this reason. IDK how contextual it is in every day life, but it works GREAT with talking. It’s contexual conversive data analysis is FANTASTIC from what I’ve seen

            • Shark Bait

              your totally right! their is a massive problem with some companies letting the marketing department influence the design. Their needs to be strong links between marketing and design teams to design a successful produce, but marketing should not run the show. Marketing will want every feature under the sun thrown in so they have lots of bullet points to advertise.
              Now what a talented designer needs to do, is refine this list, and decide what is truly useful. To an extent, tell the user what they want, and make a beautiful simple user experience.
              An example i like to use is a kettle, the user only wants to turn it on, but marketing want to put a display, and countdown timer, and weather monitor and all sorts of bull-shit in their to make it sell. But it doesn’t really add to a successful user experience that will help it to sell millions.
              Now back to watches, and the same applies, like you say to nail the experience it needs to be quick and glancable, not 1000′s of features hidden in menus, that cant be navigated efficiently on a watch. It is up to the designer to refine the features and deliver a smooth easy user experience, so it just works! I hope android wear can deliver this, it certainly seems posed to unlike the galaxy watches.
              This is a similar approach to what apple did with the iPhone, and that why i think the moto 360 has the potential to be revolutionary.

            • Corbin Crutch

              There really does need to be a good balance…. You wannt know who does that well? Like, really well? Apple. I know that’s funny but it’s true mostly. On the Android side of things I think that LG does a pretty good job with their whole learning from you thing. I like them but perhaps I’m being biased. I’d love your thoughts on that. I mean, with the G3 they knew some people wanted it larger (I for one am an advocate for that but also feel small devices are needed for choice so that’s double edged sword), they did a great job with the feel of it, heard about the autofocus time issues, and just did an overall good job with the phone in my opionion.
              Amen! It’s amazing when companies will allow that.
              Yeah. I think Amazon needs to work on that a tad. :P I honestly LOVE the specs of the HDX but the second I’d buy it… HACK!!!!! Playstore, this, that.
              See, I think that there can be more advanced features WHEN you want to. What I mean by that is there needs to be an obvious front and back end. The front end just like what we’re talking about, and then an optional backend for some more detailed apps if devs wish to design for such a thing. Even then they need to be limited in funtionality when the UX simply won’t allow a good interface with an app and tell you to pull your phone out. Syncing with those apps is another thing that REALLY needs to be tackled if those things (cough, like S Health) want to record and send data for long periods of time. I know I mention Sammy alot but that’s only cause their the biggest name trying to combine two worlds here…. And indeed it does. We can only hope that other manufacturers take this idea to heart. You can’t design the same thing for phones, TVs, this that this that. Google and Ubuntu seem to realize this farely well and have (for the most part) adopted proper UX for such things accordingly.
              I hear you there

    • Fox-News

      Dre with skinny jeans. Sell out.

    • Joachim Nilsson

      Maybe it’s neither the brand or the products, maybe it’s the person?

    • chaki-

      iBeats, iDre probably would make a song for crapple coz he is THA billioneeeer maafaaa :D

    • Jason Yuen

      “headphones that have done incredibly well” Notice how he doesn’t say anything about the quality of the headphones. It’s all financials and marketing they’re interested in.

      • Corbin Crutch

        Yeah but lets look at Apple for a moment here. It only makes sense (BTW, I’m joking around. :P)

        • Jason Yuen

          They are a match made in heaven aren’t they? As much as I love android, I respect Apple and iOS. I just hope this acquisition isn’t just for the sake of boosting the Apple “bling”.

          • Corbin Crutch

            You can say that a few times. And I feel the same. I very very much so enjoy the design Apple has. I love OSX Mavericks and iOS for that reason and that reason only (although the design also incorperates CERTAIN aspects of how it works so…). Well of course it is! That and Apple needs a new direction without Jobs and this could easily mark the beggining of that. Not only that as such, but their streaming service NEEDS to grow. I read about a statistic that music markets hurt BAD cause of piracy and streaming. Apple and iTunes are loosing money FAST, and Apple wants to keep it’s head afloat

    • Magnetic1

      I’m not sure Apple did the right thing. Based on headfi forum Beats is more looks than sound quality. And Apple products are very much about quality versus superficial cosmetics. But as a disclosure, I never heard beats before so I am only basing this on comments at headfi. And 3 billion seems like a lot of money compared to what Motorola was bought for by Lenovo. One thing in the consumer industry a lot of fads come and go.

    • Magnetic1

      As far as fads go CISCO bought that portable camera company and then shut it down because of low sales.

    • Sal

      Two overpriced products combine together to create a SUPER overpriced product

    • Anderson Santos

      Just BRAND, it’s a marketing play

    • Timothy A Lindsay Jr.

      To use the beats as audio speakers like HTC does

    • akash bajpai

      I think it is all about to increase the brand values..

    • eriel

      Apple needs to improve sound quality and software, and create a new social approach with it, like they did with the iPod and iTunes back in the day

    • Praburam S

      Apple and beats r unique with their quality. Together apple will bring best to its products..

    • naveen

      I think apple wants to integrate the beats into their mobile phones and to use the beats music customers

    • Martin Vlamynck

      I Hate Apple but I love Beats :)

    • Patrick

      Apple’s trying to shut down competitors one by one, Android or to be precise the well known HTC and beats partnership. HTC is already struggling, Apple is just using that. Also people are not buying Apple for the quality of sound, hell, people are even using their iSomething earbuds. (In addition, beats isn’t even the best choice for audio, only their costs is high end)

    • KrustyLv

      Looks cool. Hope i win, cuz i want to test ‘em!

    • Patrick Stromberger

      In my eyes… Two overrated brands are now one overrated brand :)

      Nothing special :P

    • Michael St.fort

      I don’t think so, the brand is so big it attracts starts like LeBron James. LeBron is signed to beats and Samsung so the complication are already there.

    • Me

      It’s a cool decision by Apple to purchase Beats. Imagine the possibilities that they can do with it, Including their devices.

    • Jenny N

      Apple can see the quality in Beats and of course they want it. They can make money with Beats!

    • Ariel Abella

      Will it’s okay they both familiar and amazing technology, The Beats is the perfect partner of Apple..

    • krispy2525

      It’s a really good decision for Apple to buy beats for the recognition and the sound quality but I wish that an android company like lg or Samsung bought it instead. It was a really dumb choice for HTC to give up their own share of beats.

    • Nomadunlimited .

      for a better future the better

    • Tyrone Macedon Sr

      They wanted to boost their music presence with Beats Music. They are thinking about the future of their business .Additionally they purchased Beats because it is a brand that is making money and they,(APPLE) are a company that likes to make money.

    • Nelvin Santiago

      this is what I think of that purchase: ……………….., I hate Beats..I prefer Harman Kardon.

    • Tyler Hampson

      I just see music, listening is sooo last millennium

    • kosaidpo

      apple will soon take yahoo’s place , their innovation sense its just gone

      • Chris

        What if Apple and Yahoo teamed up? (merger, buy out, etc) might be a bit interesting.

    • Nicole Carter Weasley

      I think it’s great!

    • Gerardo

      Just for marketing. Thats all.

    • Chris

      Apple purchased Beats for the streaming part + younger demographic. It’s not for the headphones because the headphones are garbage.

    • Kevin Antiquera Cosa

      I think apple wants to use beats in there devices like iphone, ipad, etc.

    • megatec45

      They bought a good thing

    • Himalaya sharma

      I think they bought beats because they saw htc having pretty good Sound quality when they parpartnershiped with beats so they want to buy beats and bring better sounds to iPhone

    • Byung hun jun

      Actuall people wants beats for fasion not for function.

      In my country S korea people wants beats for stylish.

      And it looks gorgious and If someone wearing beats on way people around say Oh look at that guy!! He is wearing beats!!

      That’s why people love beats

      And in my opinion apple wants people to react that situation

      Like
      oh look at that!! He is wearing beats and it’s conclude apple!

      In conclution apple wants people to react more entusiasum to their product and beats is one of the marketing i guess

      Ps) sorry for not good at English but i want to tell you about my thinking ^0^

    • praba.rtr

      Because beats audio is one of the most promising manufacturer of sound goods.

    • onormil

      I don’t really like the idea but Apple do good product let’s see if how Apple will manage that.

    • Andrew Lindberg

      Sounds Good!

    • Vello

      Just another monopol, It’s a well known brand that has a lot of market share so it seems a logical buy.

    • Applefan2000

      What is apple doing?

    • Charly Castillo

      I think this a pretty good movement for Apple. I don’t really like Beats or Apple, but let’s face it, they are pretty good at selling very expensive stuffs that you probably don’t need. They are the kings of marketing, so probably the new iPhone sells will raise up to the sky.

    • Julian

      Apples going to make something expensive even more expensive

    • Guest

      does this mean a free pair of beats if i buy a new iphone!?

    • ‘Ahmed Mejri’

      Well they will probably sell Beats headphones as “The ideal product to complement the revolutionary iPhone”.

    • Qtype

      it’s all about recognition… I think Beats will be bundled and it will
      give Apple a one more bragging right when presenting new Iphone’s… additionally
      I think that they have some new features in mind for which they needed the guys with the right knowledge to make it…

    • Ondřej Daněk

      One company with overpriced products buying a similar one? Number of fucks given = 0.

    • João Melo

      probably because of beats music subscription service, itunes is losing lots of users against subscription services

    • Maximiliano Gonzalez

      It’s a great notice because i have a iphone and maybe the sound can be better in this phone

    • Виталик Панков

      Nice

    • Gentrit Biba

      I dont reallry understamd why apple bought beats but again i think this is better for apple

    • DK

      Atleast they can play some beats :)

    • Shamoy Rahman

      thats gonna be horrible
      if another company like sony bought beats it would be much better

    • Khaled Hussien

      beats brand have made i good reputation for its quality and innovative designs , and somehow it becomes like a life style trend using beats products specially the headphones , so apple is going to raise the standards of competition as always in both wearable and portable devices ….

    • Hargobind Singh Duggal

      I really think cause they wanna endorse it as a brand and nothing else, “we here at Apple have used the leading design and technology by Beats to make our earphones even better ” :p

    • Annette

      Probably because it was a good fit.

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