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Apple Thinks Beats Music Is Worth $500 Million…

Screen shot 2014-05-08 at 4.29.48 PM
 

Apple is spending $3 billion on Beats Electronics and Beats Music. How did they decide on this staggering amount?

Wall Street Journal has spoken to “people familiar with the matter“.

These unnamed sources say that Apple spent just over $2.5 billion on Beats Electronics, and just under $500 million on Beats Music.

The two divisions of Beats are backed by separate investors.

Earlier this week, Apple’s CEO, Tim Cook, said the acquisition was about hiring the people involved (Jimmy Iovine and Dr. Dre). Cook said expanding Beats’ business was not the reason for the deal.

Cook also saidWe love the subscription service that they built – we think it’s the first one that really got it right.

Beats Music says they have 250,000 paying subscribers, but that number might actually be significantly lower.

 

Nina Ulloa covers breaking news, tech, and more. Follow her on Twitter: @nine_u

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Comments (9)
  1. TuneHunter

    I am curious where Mr.Cook is noticing the brilliance and superiority of Beats over all inclusive Spoofy?
    Is there hidden cash or money laundering opportunity?


    Reply
  2. Spoken X Digital Media Group

    I’m a wounded animal inside the corner now; I understand that inside my last evaluation of myself. I can take you out and it will get done. You can’t always choose your battles. But when you happen to get in fights–you have to show em’ how come you a world champion , take em’ deep into the waters, places they never been before. Sometimes you got to call on special forces and talk about the quadrillion and the quintillion inside the court of equity and see how long you can survive to see another day. . .LX


    Reply
    1. TuneHunter

      Man, deep poetry, deeper than any of my own expressions.
      I’ll read it few more times.


      Reply
  3. Willis

    Apple needs to put down the crack pipe.


    Reply
    1. TuneHunter

      Really good crack pipe with select crack stock you will find at SPOTIFY.
      Apple is just cruising on Jobs generated hipe!
      More and more they resemble GM of tech. Golf and small talk won’t do with Samsung, Google or even Huawei.


      Reply
      1. Ggggg

        Tired of the underground racism invest in Chinese co.
        Spotify Is a toy.
        Beats is real made by musicians.
        Once ppl understand the crap that is spotify and all these Internet thieves they will understand.


        Reply
        1. Willis

          Beats is not made by real musicians. Beats was made by technologists and taken over by musicians. Being propped up by investment, it is not a sustainable, or valid, platform compared to many other opportunities.


          Reply
        2. Anonymous

          Sub based, all inclusive streaming cannot and will not save music industry.
          Unless they can walk on the water and able to sale subs at 24.99 to 400M folks to create $120B music industry.

          Spotify, Beats, Apple or whoever – WRONG BUSINESS MODEL – music has to become merchandise again.

          Very simple to implement and profitable to all!


          Reply

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