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Apple Finally Makes It Official, is Buying Beats for $3 Billion

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Hey, look, Apple finally decided to announce that it is buying Beats. The cost of the acquisition will run Apple $3 billion, a price that includes a purchase price of $2.6 billion plus another $400 million that will vest over time. Apple is buying both Beats Music and Beats Electronics.

This acquisition was first rumored back on May 8, so we aren’t exactly sure why it took Apple so long to announce it. Some think the delay was due to Dr. Dre’s YouTube celebration, where he spouted out drunkenly that he was “The first billionaire in Hip-Hop, right here from the motherf***in’ West Coast, believe it.” Either way, it’s all official now. 

Beats co-founder Jimmy Iovine said in the press release for the acquisition that he has “always known in my heart that Beats belonged with Apple.” Excuse me while I go vomit a little.

Iovine and Dre will both join Apple.

Beats Music will apparently continue to live on, for those of you with an Android device that use the service.

Congrats, Dre.

Via:  Apple
  • Mauricio Sanchez

    I don’t see where this is gonna go. $3 billion obviously isn’t worth brand recognition.

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  • JoeTi

    Seems like this will not right their iShip. Good luck.

  • Lucky Armpit

    It wouldn’t surprise me if Apple discontinued Android support for Beats – it’s what they did when they bought TestFlight. We had to find a new distribution method for our Android app. Gee, thanks for being petty, Apple.

  • the beats

    The real reason?….

    Android Leading African-American Smartphone Platform
    Mirroring the trends seen in the general population, Android has distanced itself from competitors in terms of platform penetration among African-Americans, taking 37% of the smartphone market share in that group. Unlike the general population, where the Apple iPhone runs a close second to Android, African-Americans are next-most-likely to use RIM Blackberry (30%), with iPhone a distant third (16%), followed by Microsoft Windows Mobile (13%).

  • Dave

    You can see leaked documents online that their $379 set of headphones only have an internal cost of $18 including packaging. I realize there is marketing and other costs involved, but they are junk. Over priced fashion statements.

    • NexusMan

      And? You think an iphone’s internal cost is $849?

  • http://thatgeekdad.blogspot.com/ Rob Delaney

    Dre’s next album

    • ToraRTC

      I’m so glad you posted this. Hilarious.

  • Ron Kawey

    “… Excuse me while I go vomit a little…” Epic. I couldn’t agree more.

  • https://www.facebook.com/christopher.johnsc chris_johns

    apple wants their streaming service and their marketshare…thats all…headphones just a bonus

    • JSo

      Yep. Let someone else do all the work and then buy them. – Apple logic.

      • SerenityNow

        That’s a curious statement considering that Google has historically made larger acquisitions than Apple.

        • JSo

          They may purchase other stuff as well. But I think they make a lot more original innovations than Apple does.

  • joejoe5709

    From HTC to Apple. One misguided out-of-touch company to another. But, yes, a sincere congrats goes to Dre. That’s the American dream right there. Come visit us Washington State. That billion could buy a whole lot of weed. Lol.

    Do they know it’s just fancy sound processing, an overhyped music player and overpriced headphones? Seems like a couple billion too many for that and a brand name. Are there a lot of patents that come with it or something? Given Apple’s recent musically inclined commercials, anyone else get the feeling Apple is trying to become a music company? It kind of makes sense… they did help make mp3′s a household name with the iPod craze.

  • frankyblike

    wtf does apple need an overpriced headphone company for?

    • creed

      To match their overpriced phone & overpriced computer companies.

  • Kevin Esser

    Official new logo

  • Kevin Esser

    What it really means

    • joejoe5709

      Pretty much…

  • Tony Byatt

    Overpriced buys overpriced…

    Perfect pair…

    • Scott H

      Will they buy Monster next?

      • Justin W

        Well, the Monster iCable costs only $99, and you’re required to get it in order to plug your iDevice into a PC, so why not?

    • JoshGroff

      Depends on which product, the iPad Air is actually reasonably priced compared to other high end tablets. (And the best, if not only, option available with t-mobile LTE compatibility.)

  • jb

    so many “ibeats” self-pleasuring jokes running through my head I’m getting a headache! Maybe ibeat the headache away… BBL

  • Andrew

    Apple has issued a copyright infringement case to the supreme court against Applebee’s for similar name to Apple-Beats

  • greyhulk

    Beats worked out so well for HTC. I’m sure it’ll help sell iPhones.

    • creed

      IPhone owners will think that apple invented beats and that it’s the greatest thing in the world.

    • NexusMan

      HTC is clueless. Apple is not.

  • JSo

    Woopty-Doo

  • epps720

    ibeats

    • greyhulk

      Sounds like a masturbatory aid.

  • Princesation

    Oh cool! A company that sells overpriced technology to hypebeasts is acquiring another company that sells overpriced technology to hypebeasts. AWESOME!

    • SerenityNow

      What? Samsung is buying LG? I had no idea……

  • Ray

    Who has worst ear buds beats or apple?

    • Maxim∑

      Earpods? probably the best headphones to come packaged with a phone. Most Android phones don’t even come with headphones.

      Do you really think earpods was designed to compete with Audio technica, Sennheiser etc….

      • grumpyfuzz

        sony xperia z2 has the best headphones to come packaged with the phone…

        • Maxim∑

          I’ve never tried those (Sony usually does a good job with this so maybe) but what I like about Earpods is its a hybrid between in-ear and regular earbuds.

          • grumpyfuzz

            people have said Sony’s earbuds sound really good, and they are noise cancellation so you don’t hear anything around you.

          • Ray

            Eapods don’t fit in my ear’s comfortably and start to hurt after a hr or so.

        • W. Paul Schenck

          I purchased a pair of Sony earbuds from WalMart for $25. Unbelievably clear and quiet. Freq response 5hz – 27,000 hz.

          • NexusMan

            I’ve always used SONY earbuds from waaaaaaaay back when. Love the sound, price, and carrying case. Unfortunately, I recently moved away from them because of comfort issues.

    • NexusMan

      Apple.

  • https://www.heartbleedbug.com Intellectua1

    Apple is looking to corner the music market. They already use Apple computers and other software/hardware in most studios, now with Beats headphones I believe Apple has something really big planned.

  • epps720

    Somehow I don’t think this would have ever happened if Steve Jobs was still running the show.

    • NexusMan

      Not so sure about that. Music has ALWAYS been a priority of Steve Jobs, and over a decade ago, he even held a live video call with Dr Dre during a press event.

    • NexusMan

      Also, Jimmy Iovine was good friends with Steve Jobs and Jobs’ biographer, Walter Isaacson even predicted long ago that Jimmy Ioovine would run Apple’s content business.

  • sagisarius

    Well… two “premium” brands that don’t currently overlap at all, but seem super complimentary. I think this just continues Apple’s thing of being a device company… that also happens to make it’s own OSes.

  • Ken Bosse

    As an Android user I like this deal by Apple. Maybe it will push some of our mfgs to get better in the speaker/headphone game.

    • epps720

      HTC does have a special Harmon Kardon phone and the LG is going to come out with some Harmon Kardon bluetooth headphones so they’re getting there

    • Maxim∑

      thank you for your non-hate/unbiased comment.

    • MistaButters

      HTC tried and it didn’t really make an impact on sales (which is all that really matters to an OEM)

      Plus, honestly putting Beats EQ on phones and laptops was awful. With Beats on, the lows and highs were way overblown and the mids were muddy. With Beats off, they made the audio sound bad just to make Beats seem better. An HTC phone with a custom ROM and no EQ/DSP sounded better than the same phone with Beats off. And an HTC phone with a custom ROM with Sony or Dolby EQ/DSP blows the Beats EQ straight out of the water,

      I would love if Android OEMs took audio more seriously, but not with terribly cheesy hyped up trash. And even if they don’t, there are external options out there.

      Side note, I really would love if Android OEMs would get rid of the god forsaken ground noise that comes out when charging your phone and listening to music at the same time. Apple devices don’t have that problem.

      • abqnm

        Love my M7 GPE, but Beats had to go. Flashed a completely different audio profile that replaced all of that and it got much better. I guess I need to get the acetone out and finish off the Beats logo. It has been slowly trying to escape for months now anyway.

        And the power supply noise… On my GS3, it is pretty noticeable. On my M7, even at max volume I don’t get any power supply noise.

  • 213ninja

    here we go again nex.

  • brkshr

    Thank you apple!!! Get that over-hyped junk off of Android.

    • epps720

      I don’t understand all the hate. Yes, Beats is overrated and overpriced but it’s not horrible. It’s much better than the audio we have on any other phone. I had an M7 w/beats and the EQ was a million times better than any other phone. And I’m talking about using headphones not boomsound.

      • brkshr

        You said it all in your second sentence.

  • hldc1

    Great! Now Apple can peddle another product that is both mediocre and overpriced.

    • NexusMan

      Um…as is the case with most deals like this, I think the idea is to IMPROVE on what they already have.

  • turdbogls

    I am more surprised that apple didn’t just “invent” a new audio processor or something…”Innovative new iSounds” or some BS like that.
    they just spent $3 billion for a logo…..same thing HTC did.

    • Good_Ole_Pinocchio

      That Brand Power/ Market Share.

      • Ken Bosse

        Whether or not beats are good, they are a household name and together with Apple, it becomes that much better.

        • Good_Ole_Pinocchio

          Pretty much. And Beats owns the market, literally. So there’s that.

          • Pedro

            I believe you meant ‘figuratively’.

          • Good_Ole_Pinocchio

            No, I mean literally they own the market. They dominate marketshare of their segment.

          • Pedro

            Uhm, okay.
            Let the wind twist you away.

    • sagisarius

      Actually, they tried a few times… remember that weird ipod boombox thing? Sometimes it’s cheaper to just buy someone else who already did it.

  • Big Daddy

    Apple iphones with beats audio. Might take up the offer if the audio is built in for sound!

  • http://twitter.com/geoff5093 Geoff Johnson

    Beats and Apple go well together, both have buyers who buy their products as fashion statements, even if the product isn’t really that great.

    • turdbogls

      well said

    • Maxim∑

      Or maybe it was for streaming services, assisting the rollout of high resolution audio or securing record labels……….

      • https://www.heartbleedbug.com Intellectua1

        Right there. That’s what I told my friend. People think this is just for headphones.

        • NexusMan

          Of course it’s more than headphones. Apple says so themselves…It’s official. Apple has just announced their intentions to acquire Beats for $3 billion. The deal will include both streaming music service Beats Music and Beats Electronics. The mammoth deal will see Beats co-founders Jimmy Iovine and Dr. Dre joining Apple.

          • https://www.heartbleedbug.com Intellectua1

            “Most people think” trust me I’ve had to explain to more than a couple people that this deal has more to do with just headphones.

      • JBartcaps

        The one that has failed so far?

        • https://www.heartbleedbug.com Intellectua1

          But it’s the licenses that Beats holds with record companies, Jimmy Iovine is a big name in the music industry. That cool little pick your music based on how you feel deal. I mean people are really overlooking a lot of things in this deal. Forget the headphones, dig deeper

          • michael arazan

            Beats Streaming music service has 3% of the streaming market or less, even the Business sites like Bloomberg, Forbes, Business insider are all calling this a bad investment for the money

            They are saying just buying the name in itself is Apple trying to get their “Cool” back to their image.

          • SerenityNow

            Apple has what……$150 billion in cash or so? I’m sure if they were just interested in getting a “cool” vibe they could have made any number of other purchases. This might very well turn out to be a bad investment, but the real reason they’re likely doing it is twofold:

            1. They like the underlying software/IP that drives the Beats streaming service. It saves Apple the time and effort to develop their own competitor to Spotify so that they can just concentrate on growing the existing Beats streaming platform with a crapload of marketing dollars/muscle to increase share.

            2. They like Dre and lovine and were willing to pay specifically to get them into the Apple tent. This was essentially what happened when they bought NxT back in the mid 90′s. The apparent appeal was the software but what they were really buying at the end of the day was the right to employ Steve Jobs.

            Not saying this acquisition will be a success story, but business wise it’s not hard to understand *why* Beats would be an acquisition target for Apple. I suspect that a lot of business insiders and such would have felt more comfortable about the acquisition at a lower price. Change the headline from $3B to $1.5B and more investors would probably be excited about the deal. But if you’re sitting on $150B of cash and your management team legitimately thinks this is a good strategy decision, then the extra $1-$1.5B of purchase price shouldn’t stop you from making the deal. If it turns out to be a dud, then it would still be a dud at a price of $1.5B. The only thing you’d be arguing over after the fact is the size of the accounting write-off charge.

    • El_Big_CHRIS

      some kid told me he spent his 1st paycheck on a pair of beats. like $400+ at best buy. I had no words for it, but you’re right, just a fashion statement.

      • MistaButters

        $400 could get you such an epic pair of headphones…..and he wasted it.

        • JoshGroff

          Or a cheap pair of skullcandy and a nexus 5. A man’s gotta have priorities.

          • Emily Johnson

            I had an M7 w/beats and the EQ was a million times better than any other phone. And I’m talking about using headphones not boomsound.

          • Justin W

            By EQ you mean loud lows/highs, and pretty much no mid? You can do that with a standard DSP app from the Play Store.

          • JoshGroff

            I personally just use power amp because it has the eqs built in and I like the UI better than the many different stock music apps.

          • michael arazan

            None of the equalizers and sound boosts apps I have paid for or have had free have worked since I have had JellyBean on all my devices. It’s like the developers gave up when JellyBean came out, and there is no difference between stock with or without the assist on all of my devices. Did JellyBean break all these boost and equalizer apps?

          • JoshGroff

            I haven’t noticed a change in power amp, which is a music player with eqs built in, and I don’t use any separate eq apps so I’m not sure.

          • JoshGroff

            I had one prior to my note 2 and Moto x, but I wasn’t a huge fan of it. It was too small to be a good multitasking/media device and too big(tall) to use 1 handed comfortably. The beats EQ was good, but I prefer having presets for different kinds of music than just a generic one size fits all audio tweak. (Which beats does not do)

          • michael arazan

            CNN and HLN actually reported how their are cheaper head phones than beats and have twice the quality for half the price.
            Reporters saying that Apple buying Beats is Apple trying to get it’s “cool” back, being that the given consensus is that Apple is not cool anymore in the mainstream.

            Bloomberg and Forbes reporting this doesn’t make good business sense especially for the amount of money, and that the streaming service of Beats doesn’t even have more than 3% of the streaming market.

        • NexusMan

          I’m sure he doesn’t think so. And since it’s his money, only he can say if it’s a waste.

      • Dave

        Those only cost beats $18 to make if you Google the leaked internal documents.

        • El_Big_CHRIS

          the avg joe wont care, because they see celebrities endorse them. Like many brands, apple/beats, they create a sense of ‘quality/premium’ feel with high prices and it makes people think they have something worth $. This is why an old iphone can resell well whereas a HTC One wont.

    • http://www.about.me/kendallseabury Kendall Seabury

      There are some some professions where Windows is not a very good OS to use.

      • T4rd
        • http://www.about.me/kendallseabury Kendall Seabury

          Most every piece of graphic design software (Adobe Creative Suite for example) it vastly better on OS X than on Windows.

          • JSo

            Depends on the PC

          • http://www.about.me/kendallseabury Kendall Seabury

            It’s more of they way the app is laid out. I’ve use Illustrator and Photoshop on both OS X and Windows and the OS X version has a better UX.

          • http://twitter.com/geoff5093 Geoff Johnson

            I use it on both, and Adobe apps look identical on Mac and PC.

          • Adam Martinez

            If you could please point out the areas that are “vastly better on OS X” I would greatly appreciate it, thanks!

          • T4rd

            I’ll admit it may be better (but can’t say for sure since I’ve never used/seen the Mac UX), but not vastly. My wife, a total non-techie, gets around fine on Adobe PS and Lightroom on her PC. I can’t imagine why Adobe would have a significantly different UI for the same product on different platforms though.

          • brkshr

            That has more to do with apple’s handling of graphics, not the UI of adobe on a mac. Which in turn has more to do with OS X being based on Linux than anything else.

          • mustbepbs

            *based on unix.

            Big difference.

          • brkshr

            You’re right! Thanks for the correction!

          • Mike Aurin

            Reading this while working on a mobile application framework in Illustrator on my MBP. What do I know though? I’m just a self-absorbed child….

          • Sharkh20

            That myth really needs to die.

        • Chris Ghubril

          This is funny, I’m sitting here in starbucks on my mac reading this article and there are several other mac users here and no PC users. This fits the stereotype for sure.

          • JoshGroff

            I’m sitting here reading this 5 hours later on my iPad, whilst listening to Lindsey Stirling radio on Pandora, currently pondering where I fit in with this conversation.

        • https://www.facebook.com/christopher.johnsc chris_johns

          lmaooooo…awesome

    • GalaxyNOTE4

      but the main question is………………

      what…..

      …..is going SAMSUNG to buy now to make it cool?

      SAMSUNG Sennheiser?
      SAMSUNG Bose?
      SAMSUNG Harman Kardon?

      :D

      • TSY87

        They will make their own and it will be called galaxy sound.

        • epps720

          They’re already making their own and I believe it’s going to be called Level

      • eee

        They better not touch Sennheiser. Bose and Beats are very one in the same though so that would be a good move for Samsung if they wanted to follow.

    • NexusMan

      Different strokes for different folks. For many people, both Apple products as well as Beats products, are the best options for them. Saying an iPad, iMac, or Mac Pro, for examples aren’t “really that great,” is just delusional.

      • JoshGroff

        Apple deserves their market share, as much as I hate to admit it. Beats, on the other hand, does not. Quality isn’t subjective.

        • NexusMan

          You are obviously not a Beats consumer, so you can not say what Beats “deserves.” You can absolutely, not like Beats products and services for whatever reason, but the millions of people who bring Beats $1Billion in annual profits clearly feel they do deserve their market share. People need to stop trying to push their personal tastes on others. The “quality” of Beats products is obviously suitable to it’s many consumers.

          • JoshGroff

            It’s not about my personal tastes, hell I just use skullcandys because I really don’t care enough to drop more than $30 on a pair of headphones.

            It’s about the audio quality in general, compared to most other high end brands, beats is terrible. Think of beats as a pentile matrix display and other high end brands as ips displays. There is a noticeable difference in quality between the two, and just because people are buying more Beats headphones doesn’t mean it’s better or deserves its share of the market. Sales figures mean people like the product enough to buy it, which usually has more to do with marketing than anything else…

          • NexusMan

            That is absolutely your personal taste. 1st off, Beats makes many different models, with each sounding different and having different features. I doubt you have tried all of them, so you cant make a blanket statement that “beats is terrible.” 2nd, fans of Beats are more than satisfied with the quality. Most of the general population are not “audiophiles” and could care less that another headphone may be considered better by audiophiles. Its not a matter of comparison. A Mac pro is a more powerful computer than say an entry level Windows laptop, that doesn’t mean the laptop is not “quality ” Different people have different needs and listen to different types of music, and again, for some people Beats are the best choice.

          • JoshGroff

            Most of the general population aren’t technically inclined either, that doesn’t make Samsung’s phones quality.

          • NexusMan

            No, it doesn’t. The time, energy, engineering, features and components do.

          • JoshGroff

            Same “feature” set as the S4 but with a heartbeat sensor and fingerprint scanner, which are gimmicky at best. They have still yet to fix the horrendous lag across their entire UI, and most of the components are the same as other flagships, with cheaper build materials. Nothing there really screams quality.

          • NexusMan

            Again, to each, his own.

          • Steven Jaworski

            I agree with this. I won a pair of Beats Wireless headphones with a retail of like $275… I would never have paid my own money for them, but I am thrilled with the audio quality. I have never listened to music with a better set of headphones… but that being said, the last pair of headphones I bought was a Moto bluetooth stereo deal, and that didn’t have any better quality than a pair of earbuds. I don’t know why people are hating on Beats because they’re expensive and marketed well. The quality of the headphones is good. I don’t know if it’s the best, but it is better than anything I (as a normal consumer) could have imagined possible, which leads to my total and complete satisfaction.

      • TSY87

        Mac computers are still really good computers. Beats headphones are not really that great when compared to true audiophile headphones.

        • NexusMan

          “True audiophiles” as you describe, aren’t the people buying Beats, so that doesn’t matter. The millions of people buying Beats are more than satisfied with the sound and function of Beats.

  • Jason Kahn

    So anyone using beats streaming service, prepare for shutdown in 3…2…1

  • Justin Foster

    I’ll never buy beats now =)

    • K

      Never even bought it in the first place. Crappy audio…but I guess if a person wanted to look cool then they’d by a pair of headphones and wear them around their necks.

  • JBartcaps

    Perfect, more mediocre products for Apple :)

  • http://www.twitter.com/macpro88 Jacob

    I am actually really interested to see what Apple has planned and what this going to look like.

    • El_Big_CHRIS

      a beats logo on the back of the iphone.

      • grumpyfuzz

        Beats audio.

    • sagisarius

      My guess would be not a lot of anything new. They’ve been turning more and more into an electronics company instead of a computer company…. I think this just helps them continue in that direction.

    • https://www.heartbleedbug.com Intellectua1

      Apple will attempt to corner the music market.