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[Technology] APPLE Buying BEATS for $3B

Discussion in 'BBS Hangout' started by SwoLy-D, May 28, 2014.

  1. LonghornFan

    LonghornFan Contributing Member

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    His net worth is $270 million.

    Link.
     
  2. Space Ghost

    Space Ghost Contributing Member

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    Samsung was busy trying to steal everything about Apple. I think most Samsung users message is "its not an iphone".
     
  3. brantonli24

    brantonli24 Member

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    Yep, and Google will be doing the same too with, think they said they'll be spending $30 billion on overseas M&A this year.
     
  4. Deckard

    Deckard Blade Runner
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    I don't only refer to consumer electronics as "technology." Technology, obviously, covers a vast amount of territory. Heck, some universities have a College of Technology. I'm a people too!
     
  5. Mr.Scarface

    Mr.Scarface Member

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    um....50 cent is not a billionaire. Robert Johnson (former Bobcats owner) was the first Black Billionaire in 2001, Oprah was the black female in 2003.
     
  6. pmac

    pmac Contributing Member

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    Is that what he's making from this deal or what his total net worth will be? My understanding was that he was already worth about $400 million and owned about 37% of Beats.
     
  7. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    He'll make $800 million with this deal alone.
     
  8. JuanValdez

    JuanValdez Contributing Member

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    I think the rational is that this acquisition gives them the capabilities they need in music streaming (and headphones, I guess), and they already have the resources and know-how internally to scale it up. You could buy the market leader, but you pay a premium for that and get less in synergies. By buying a smaller player, you get better synergies and a higher return on capital.
     
  9. Yonkers

    Yonkers Contributing Member

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    Not from what I've read. He'll make close to that though but that's pre-tax. After tax it will still take his net worth below $1bil.
     
  10. brantonli24

    brantonli24 Member

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    He's not completely being paid in cash is he? Also, Apple is buying this with their overseas money, Dre probably has some clever accountants that can do the same for him to minimise the tax.
     
  11. fallenphoenix

    fallenphoenix Contributing Member

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    the total deal is $2.6B in cash and $400M in Apple stock
     
  12. steddinotayto

    steddinotayto Contributing Member

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    That's true. I think you have to at least look at how the music streaming business parallels with the movie streaming business though. I think there were a few companies that could have bought up NetFlix at its beginning stages but resisted and attempted their own piecemeal streaming service which ultimately failed because of Netflix's subscription size and its place in the market at that time.

    I think what's going to eventually happen is that Apple will rebrand the Beats streaming service to something like iTunes Stream to get more people to adopt the service who has iPhones or any Apple product.
     
  13. Yonkers

    Yonkers Contributing Member

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    The problem is they're not paying much less for a much smaller audience. Spotify and Pandora are not valued much more than the $3b Apple is paying and their base is much larger. Obviously they're not at saturation so Apple could have grown them even more. Beats was not a good discount.
     
  14. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
    Supporting Member

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    Bob Johnson was the first black billionaire.
     

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