I recall that there were plenty of questions about the WhatsApp valuation.
Here I think the question is what the value of Beats is to Apple. Last year Apple's revenue was £170bn so I don't think they're looking at Beats to give them an extra 0.5%.
Of course the other side of that is with Apple's cash pile being what it is there is almost no financial risk to the acquisition so how much justification does it need?
True, Beats' revenues are large but nothing compared to Apple's. Beats revenues + Apple's huge cash pile make it an almost risk free deal as you say. I think the streaming Beats streaming service (which I use - I don't use their headphones) is actually very slick and underrated. We all know how bad Apple is at consumer cloud services so this part of the acquisition should be useful. It's also important to point out the investment Beats have made in their streaming service (the number of curated playlists they have and the quality of them is astonishing) and it would take Apple a long time to match that.
Comments
I recall that there were plenty of questions about the WhatsApp valuation.
Here I think the question is what the value of Beats is to Apple. Last year Apple's revenue was £170bn so I don't think they're looking at Beats to give them an extra 0.5%.
Of course the other side of that is with Apple's cash pile being what it is there is almost no financial risk to the acquisition so how much justification does it need?
True, Beats' revenues are large but nothing compared to Apple's. Beats revenues + Apple's huge cash pile make it an almost risk free deal as you say. I think the streaming Beats streaming service (which I use - I don't use their headphones) is actually very slick and underrated. We all know how bad Apple is at consumer cloud services so this part of the acquisition should be useful. It's also important to point out the investment Beats have made in their streaming service (the number of curated playlists they have and the quality of them is astonishing) and it would take Apple a long time to match that.