Apple buys Vivendi’s 13% stake in Beats Electronics for $404 million

“Vivendi SA sold its stake in Beats Electronics LLC to Apple Inc. for $404 million as part of the iPhone maker’s takeover of the headphone company,” Kristen Schweizer reports for Bloomberg.

“The stake was about 13 percent, Paris-based Vivendi said today, and was held by the company’s Universal Music Group, the world’s largest record label,” Schweizer reports. “The investment almost doubled in value from an estimate of $214 million in September, said Conor O’Shea, an analyst at Kepler Cheuvreux in Paris.”

“Apple agreed to buy Beats for $3 billion in May, its biggest-ever acquisition, with founders musician Dr. Dre and music-industry executive Jimmy Iovine joining the iPhone maker,” Schweizer reports. “While the deal, projected to close in the current quarter, includes Beats headphones and other hardware, Apple also is getting access to an Internet-based music streaming service, Beats Music.”

Read more in the full article here.


    1. I don’t care how much money you have, $3B is a lot of money. Apple has traditionally been very careful with its money, which is why I continue to have great faith in the future of the company. As a shareholder, I do not want them to start overpaying for acquisitions or wasting money on gambles like Google, Microsoft, etc. Hopefully the acquisition of Beats will turn out to be a great thing. But I don’t see it as “chump change.”

  1. I have to wonder about the total structure of the Beats deal.
    Was the 3 Billion a total figure? Did it include this 400 million and other charges?? (it should, you do not pay 3 billion to a company owned by people not directly involved in the sale).

    If anyone has a public listing of the breakout of the Beats deal, please post it here. I am sure we all are wondering.

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