Breaking: Apple Buys Beats Electronics for $3 Billion

As reported a few weeks ago, Apple today confirmed its acquisition of popular headphones maker Beats Electronics for approximately $3 Billion. Apple, though owner of vast cash reserves (well over $130 Billion), has been reluctant to make massive acquisitions in the past. 20140528-164632.jpg
This acquisition changes everything with the smartphone maker expected to integrate Beats into its existing line of products. Dr. Dre is expected to become an Apple executive.

Apple is expected to discuss this acquisition next month at its annual WWDC conference. CEO Tim Cook commented on the acquisition explaining how important music is to Apple. Apple has had a long history in the music industry, dating back to 2001 with the introduction of the iPod.

SVP Eddy Cue and Craig Federagi are expected to speak tonight at Recode.NET’s CodeCon. We await Cue’s interview (as he oversees iTunes at Apple). More on this later…

Apple also released the below statement today.

CUPERTINO, California—May 28, 2014—Apple® today announced it has agreed to acquire the critically acclaimed subscription streaming music service Beats Music, and Beats Electronics, which makes the popular Beats headphones, speakers and audio software. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple. Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”

Iovine has been at the forefront of innovation in the music industry for decades, and he has been an instrumental partner for Apple and iTunes® for more than a decade. He has produced or collaborated with some of the most successful artists in the history of the iTunes Store®, helping make it the world’s number one music retailer. Iovine and Dr. Dre are sound pioneers, artists and entrepreneurs.

Beats Electronics has brought the energy, emotion and excitement of playback in the recording studio back to the listening experience and has introduced an entirely new generation to premium sound entertainment. Beats Music was developed by a team of people who have each spent their entire career in music and provides music fans with an incredible curated listening experience.

“Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.”

In just five years since launch, the Beats “b” has become the brand of choice in the music and sports worlds, and is the market leader in the premium headphone market. Music superstars including Lady Gaga, Lil Wayne and Nicki Minaj have designed their own customized Beats headphones and speakers. Fashion designers and street artists such as Alexander Wang, Futura and Snarkitecture have collaborated on special limited products, while renowned athletes including LeBron James, Serena Williams and Neymar use Beats as a critical part of their training and game day process. Beats has quickly become part of pop culture in the US and with the acquisition the Beats product lineup will be offered in many more countries through the Apple Online Store, Apple’s retail stores and select Apple Authorized Resellers.

Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.

Formally established in 2008 as the brainchild of legendary artist and producer Dr. Dre and Chairman of Interscope Geffen A&M Records Jimmy Iovine, Beats Electronics (Beats) comprises the Beats by Dr. Dre family of premium consumer headphones, earphones, and speakers as well as patented Beats Audio software technology and streaming music subscription service Beats Music. Through these offerings, Beats has effectively brought the energy, emotion and excitement of playback in the recording studio to the listening experience and has introduced an entirely new generation to the possibilities of premium sound entertainment.

Beats Music is a subscription streaming music service that focuses on providing a personalized music experience for each user through a unique blend of digital innovation and musical passion. Programmed by a trusted team of well-respected music experts with over 300 years of experience across all genres, Beats Music delivers the right music for any situation, any time, and any preference, personalized to your tastes. The result is an artist-friendly digital music service that does more than simply offer access to music, but one that establishes an emotional connection to it as well.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

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Rumor: Apple to Acquire Beats music for $3.2 Billion

In a surprising turn of events, the Cupertino giant is said to be finalizing talks with popular headphone maker Beats Music. The deal, if it closes, is said to be at $3.2 Billion.

Beats music, which has grown in popularity since it’s 2008 luanch, debuted a streaming service (via iOS app) in the past weeks.

Apple, a company not known to make large acquisitions (its largest being that of PrimeSense for $350 Million), is said to be finishing the agreement between the two companies. Under the direction of legendary CEO Steve Jobs, Apple was shy to make acquisitions; Jobs declared acquisitions as a “failure to innovate.” Clearly, CEO Tim Cook doesn’t feel that way. Asked about the possibility of a major acquisition at a stockholders meeting, Cook responded saying Apple would make the move if it was right. It’s quite clear that behind those closed doors, a culture change is gradually occurring at the Cupertino company.

Beats Music founder somewhat confirmed this yesterday. We’ll have more details as we discover more.

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Breaking: Apple Announces WWDC 2014

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Apple today announced that it will hold its annual World-Wide Developer’s Conference from June 2-6. Apple’s conference, held specifically for developers, is the primary venue where the company shows off it’s latest software. Last year, Apple announced iOS 7, Mavericks, and the Mac Pro.

Tickets for this year’s WWDC will be distributed in a different method. In previous years, the conference sold out rapidly (only 72 seconds last year). Apple is using random selection this year to increase the opportunity for developers. Google’s annual I/O conference is also following a similar fashion.
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This year, Apple touts design more than ever, with a colorful new banner (see above). The company emphasizes design, games, and new features such as iBeacons.

Tickets are available right now for registration – developers can enter for a chance to get a ticket which will be randomly selected on April 7.

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Announcement: Apple Rumors to Shut Down

I great saddness, I am announcing the closing of AppleRumors.NET. AppleRumors.NET has had an incredible history before our purhasing of the site. From 2001-2005 (exact date may vary), the service was owned by an different company which reported exclusively on Apple News. Click here to view more of the old Apple Rumors site.

With my acquisition of the site in September of 2013, I have dramatically revamped the site. Needless to say, I am officially closing AppleRumors.NET by next Sunday for undisclosed purposes. I apologize for any inconvenience this may have caused.

To Infinity!

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Facebook to Acquire WhatsApp for $19 Billion

Update:Facebook and WhatsApp both released statements confirming this.

Facebook CEO Mark Zuckerberg today announced that his company would purchase the popular messaging service WhatsApp for $19 billion. WhatsApp reportedly has over 500 million users and nearly all of the Spanish population on its service. Previously, WhatsApp declined acquisitions.

Zuckerberg claims that this acquisition will lead towards another “billion” users. Facebook alone has over 1 Billion active users while it’s Instagram subdivision sports over 100 Million users.

This latest deal comes less than a week after Viber, the popular social network and texting app, was acquired by a Chinese company for $900 Million. Facebook is also placed bids for Snapchat, the popular disappearing messaging app, for a reported $3 billion. Snapchat, however, declined. In May 2012, Facebook acquired Instagram $1 billion. Google acquired the social mapping network Waze for $1 Billion in 2013. Additionally, Yahoo! Purchased Tumblr in 2013 for $1.1 Billion. That’s a lot of social networks purchased!!

What’s next

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Notes from Apple Quarterly Earnings

Notes from Apple’s Quarterly Earnings

20131022-162209.jpg– 4.8 Million Macs Sold in Fiscal Quarter One
– 80% of all iOS users are now on iOS 7, making it the most popular mobile OS in the world.
– Apple remembered Mac’s 30 Year Anniversary last week
– $4.4 Billion made from iTunes
– iTunes hit new records
– App Sore passed 65 Billion Downloads
– 130,000 Chinese Apps
– $7 Billion from Apple Stores (Record)
– 4 New Stores Opened
– 166 Stores OutSide USA
– Average Revenue was $16.7 Million/store
– iBeacons Rolled Out in Quarter One
– Apple has $158.8 Billion in Cash

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