“Apple CEO Tim Cook looked like he wanted to dance Wednesday as he discussed his company’s $3 billion acquisition of Beats Electronics,” Michael Liedtke reports for The Associated Press. “Cook seems most excited about the potential of Beat’s still nascent music-streaming service, which currently has more than 250,000 subscribers. That’s paltry compared to the more than 10 million people subscribing to Spotify’s rival streaming service, Cook is confident that will change once Beats has access to the data that Apple Inc. has accumulated while selling more than 35 billion songs to more than 800 million iTunes accounts during the past 13 years.”
“‘We are getting the first music subscription service that got it right, that believes in human curation,’ Cook said during a Wednesday interview at Apple’s Cupertino, California headquarters. ‘We think this is killer. The feeling that you get from listening to this service is so different than anything else,'” Liedtke reports. “After generating $1.1 billion in revenue last year, Beats’ sales increased by 30 percent during the first three months this year, Cook said. He expects Beat to boost Apple’s earnings beginning in October. Apple earned $37 billion on revenue of $171 billion in its last fiscal year, so Beats’ initial contribution won’t be that significant financially.”
“Cook says he tries not to ever consider what Steve Jobs might have done if he were still alive, but he insists that his predecessor wasn’t as resistant to acquisition as most people think,” Liedtke reports. “‘We have never been anti-acquisition,’ Cook said. ‘We have looked at some very, very large companies and we decided not to buy them. But we didn’t decide not to do them out of religious reasons. There was no rule, ‘Thou Shalt Not Acquire.’ There was no rule that everything had to be built organically.’ … Jobs ‘knew Jimmy very well and he loved Jimmy very much,’ Cook said.”
Read more in the full article here.
MacDailyNews Take: Figuratively, not literally.
Did Tim Cook just pay $3 billion for his successor, Jimmy Iovine? – May 29, 2014
Steven Levy: With Beats Music service, Apple’s Tim Cook goes against the wisdom of Steve Jobs – May 29, 2014
Apple + Beats = MTV? – May 29, 2014
Eddy Cue and Jimmy Iovine: Steve Jobs would be extremely proud of Apple today – May 29, 2014
Jimmy Iovine brings his own brand of ‘reality distortion field’ to Apple – May 29, 2014
JPMorgan: Apple may spin-off Beats Electronics business – May 29, 2014
Apple CEO Cook: Beats deal a ‘no-brainer’ – May 28, 2014
Tim Cook’s internal memo to Apple employees regarding Beats acquisition – May 28, 2014
It’s official: Apple acquires Beats Music and Beats Electronics for $3 billion – May 28, 2014
Apple reportedly cuts $200 million off Beats purchase price – May 28, 2014
Why the Apple-Beats deal may be dead – May 27, 2014
Has Dr. Dre’s drunken boast cost his company $3.2 billion? – May 24, 2014
Apple might buy Beats Electronics with foreign cash, effectively paying much less than $3.2 billion – May 23, 2014
70% chance Apple’s Beats deal is happening and, if so, it’s a Dr. Dre, Jimmy Iovine acquihire, says source – May 22, 2014
As MacDailyNews already posited, Walter Isaacson thinks maybe Jimmy Iovine will run Apple’s content business – May 20, 2014
Apple strikes a new chord in the future of music with Beats acquisition – May 18, 2014
How Tim Cook buying Beats is like Steve Jobs buying SoundJam – May 18, 2014
Apple’s $3.2 billion Beats acquisition may not be finalized until next week – May 15, 2014
Monster CEO sounds a little bitter over Apple’s planned $3.2 billion Beats acquisition – May 14, 2014
Ben Thompson on possible Beats buy: Is Apple losing what makes Apple, Apple? – May 13, 2014
Nolan Bushnell: Beats is a ‘good deal for Apple,’ but it says Apple is ‘not an innovative tech company’ – May 13, 2014
Curated music influencing Apple’s jump into streaming – May 13, 2014
Beats Music is actually so good that I’m worried about Apple ruining it – May 13, 2014
Apple could become most powerful record label in the world with Dr Dre, Jimmy Iovine onboard – May 13, 2014
Bob Lefsetz on Apple-Beats deal: Tim Cook is an operations guy, he’s clueless, and the company has no vision</a – May 13, 2014
Apple CEO Tim Cook makes break from managerial style of Steve Jobs – May 12, 2014
Analyst Sacconaghi on Apple buying Beats: ‘We struggle with the rationale for this deal’ – May 12, 2014
Cody Willard: Apple’s Beats buy is just stupid
– May 12, 2014
Apple may unveil Jimmy Iovine, Dr. Dre executive appointments at WWDC – May 12, 2014
Apple CEO Tim Cook’s pursuit of Beats seen presaging more takeovers – May 12, 2014
Former eMusic CEO explains why Apple wants to buy Beats – May 12, 2014
Apple’s deep ties with Jimmy Iovine key driver of Beats deal – May 12, 2014
Removal of Dr. Dre video about Apple-Beats deal likely means acquisition is real and imminent – May 10, 2014
Dr. Dre boasts of Apple-Beats deal in YouTube video, on Facebook – May 9, 2014
Game changer: Apple buying Beats could radically transform the digital music business – May 9, 2014
If Beats deal happens, Apple is acquiring a fad, not quality, and that is troubling – May 9, 2014
If Apple’s really buying Beats, here’s hoping it’s brilliant in a way which isn’t immediately obvious – May 9, 2014
The reason for Apple’s $3.2 billion interest in Beats? Spotify – May 9, 2014
Apple buying Beats Electronics: Its best idea since the iPad? – May 9, 2014
Why would Apple want to blow $3.2 billion on Beats Electronics? – May 8, 2014
Apple in talks to buy Beats Electronics for $3.2 billion – May 8, 2014
Where to I sign up?
1 infinate loop, california
I’ve been there before and stood in long lines.
Apple acquisition of Siri was under Steve Jobs’ reign.
Apple partnerships with who they believe will benefit Apple or at least have the intend and inspiration Apple shares. Again and Again – Apple has said it does not create everything from scratch.
Todays innovation is done by PIECING TOGETHER INDUSTRIES ADVANCEMENTS putting a shine on products that blow the competition away. And Only Apple is doing this, all others follow Apples’ lead.
There’s nothing wrong with buying a company that actually makes a profit. Something else Apple does different.
sure, just like Apple’s 2009 acquisition of Lala.
Apple’s desperate attempt to push people into subscription-based computing or music purchasing is not a “killer” deal for anyone except Andre Young and Jimmy Iovine. Some of us like to curate our own music and enjoy high-fidelity electronics, thank you very much. Beats brings nothing to the table that Apple needed. NOTHING.
“The feeling that you get from listening to this service is so different than anything else”
Now that sounds a whole lot like the Apple we know and love.
Billions in hardware revenue, smart & creative people, a solid cloud service, growing product lines. What more could you ask for in a tech acquisition?
as underwhelming as iTune Radio is reported to be , it still isn’t available in Canada !
The pundits have had a field day with this one. But more rational investors are reacting positively. Beats has been a very profitable company. And Apple is buying Beats for only 3X earnings, which is actually a very good deal. Acquisitions are often at least 4 or 5X. So as much as the self-appointed armchair experts (who never ran a company) want to say otherwise for the purpose of click-whoring, it’s actually a good deal for Apple.
Time will tell how it all works out. But on the face of it, big though it may sound, it’s not a lot of cash for Apple to spend. And last I checked, Apple has had an extremely successful track record with acquisitions.
I think you meant 3 times revenue. Big difference. I don’t think we have seen how much their earnings are.
Why the homophobic “figuratively, not literally” remark? You have no idea and why do you care? And why do you think loving someone very much I something to be explained? I literally love LOTS of people of the same sex very much: my father, my husband, my clients, my best friends. I think the clarification of Tim’s comment was childish, really.
You’re right. I didn’t get it until I read your comment. I was like, what?