3 ms·
Beats has a marketshare of something like 2/3 to 3/4 for headphones over $100 and annual revenue of about $1.4 billion in 2013 (1/6 of Facebook's revenue). If a
by InclinedPlane 13y ago
Beats has a marketshare of something like 2/3 to 3/4 for headphones over $100 and annual revenue of about $1.4 billion in 2013 (1/6 of Facebook's revenue). If anything, $3.2 billion was a steal.
- epo 13y agoCitation required for such a handwavy assertion. Beats is a fashion brand and those are notoriously ephemeral. If Beats want to sell they may know the game is up, but then so would Apple.
- 001sky 13y agoCitation required for such a handwavy assertion Fashion brands M&A all the time> https://en.wikipedia.org/wiki/LVMH https://en.wikipedia.org/wiki/LVMH > LVMH is a classic, diversified example. Even apple is seen by many as a 'fashion accessory'> https://en.wikipedia.org/wiki/IPod_advertising#Silhouette_Style https://en.wikipedia.org/wiki/IPod_advertising#Silhouette_St... They ran an entire marketing campaign based on the gratuitious display of earphone cords !!
- adamlett 13y agoYou mention marketshare, but neglect to mention the size of the market. You mention revenue, but neglect to mention profits. For all your numbers tell me, Beats could be operating at a loss in a shrinking market. And I'm curious: If $3.2B was a steal, what would have been a fair price?