| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Innovation Last Updated: May 12, 2014 - 9:15 AM

Apple acquires 24 companies in 18 months; Targeting Irish tax-linked Beats Electronics
By Michael Hennigan, Finfacts founder and editor
May 9, 2014 - 4:51 PM

Email this article
 Printer friendly page

Apple has bought 24 companies in past 18 months, it was recently disclosed, and more deals are likely on the way, with Tim Cook, the CEO,  describing Apple as "on the prowl" for potential acquisitions that make sense. Cook's comments coincide with news reports that Apple is seeking to bolster its streaming-music business with a proposed $3.2bn deal to acquire Beats Electronics LLC, the high-end headphone maker that recently launched the Beats Music subscription service, according to people familiar with the matter - - Beats Electronics LLC is a privately held US firm and Beats Electronics Holding Limited, an Irish offshore tax avoidance company that is domiciled in Jersey, Channel Islands, is the owner of the international operations.

The Financial Times reports that Apple is closing in on its largest acquisition with the planned $3.2bn purchase of Beats Electronics, the headphone maker and music streaming operator founded by music producer Jimmy Iovine and the hip-hop star Dr Dre.

The FT says that a decade after Steve Jobs transformed the music industry with the iTunes download store and the iPod digital music player, the deal is likely to be seen as an admission that Apple needs to look outside its Cupertino labs to continue making an impact.

While Beats commands a leading position in the premium headphone market, its real value to Apple is in revitalising its “cool” at a time when iTunes has waned in popularity and Samsung’s marketing campaigns have savaged the iPhone’s brand.

The newspaper says that Apple executives have admitted that its brand is in need of a revamp. Internal emails released during its recent patent trial with Samsung showed that its marketing chief Phil Schiller considered changing Apple’s ad agency after the success of its Korean rival’s “next big thing” campaign.

The Wall Street Journal reports that Carlyle Group would be a big winner in Apple Inc's possible acquisition of headphone-maker Beats Electronics.

The private-equity firm paid about $500m for just under 50% of the headphone maker last year.

If Apple follows through on its reported $3bn-plus deal for Beats, Carlyle’s take would be upward of $1.5bn, or about $1bn profit.

Not bad for a seven-month-old investment, and surely support for Carlyle’s growing interest in taking large minority stakes in companies as control investments become more difficult to come by, and more expensive.

Late last month speaking during his company's quarterly earnings conference call, Tim Cook told analysts that Apple is on the lookout for companies with talented employees and "great technology." But a key factor for those acquisitions is that they "fit culturally," the CEO said.

Cook also said that Apple considers whether its acquisitions will make sense and add value for shareholders over the long haul before the company goes through with a purchase.

"We are not in a race to spend the most or acquire the most," he said. "We're in a race to make the best products that enrich people's lives."

Apple has usually acquired smaller companies in strategic deals, never having spent more than $1bn on any acquisition but Cook said that could change, if it were the right deal.

"We don't have a rule that says we can't spend a lot or whatever," Cook said. "We'll spend what we think is a fair price."

HTC of Taiwan, the smartphone maker, bought 50.1% of Beats Electronics in 2011 for $309m and in 2012, it sold back half it stake to the co-founders.

Beats Electronics Holding Limited had revenues of $1724m in 2012 and profit before tax of $8,2m.

It paid the Irish Revenue $537,563 in tax even though its presence in Ireland is only as a mailbox company.

OECD BEPS Project: Ireland should embrace corporate tax reform -- including how Apple and rappers like Dr Dre are able to benefit from Ireland's tax regime.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Digital Taylorism: Amazon's chief rejects depiction of "soulless, dystopian workplace"
Most surviving startups do not grow; Tiny number powers jobs engine
Despite euro dip China & US remain most competitive manufacturing nations
Business startup rates up in most OECD countries led by Australia and UK
NASA's Kepler mission has confirmed the first near-Earth-size planet
Energy subsidies at 6.5% of global GDP; Commodity prices to remain weak
US startups rely on personal savings, debt; Venture capital funds less than 1%
Europe produces 13 $1bn+ "unicorn" startups in one year; London is Europe's digital capital
Irish-based firms raised €120m in VC funding in Q1 2015; Some top recipients Irish for tax purposes
Ireland: Fourth highest 25-34 year old ratio of third-level graduates in developed world: So what?
Business dynamism/ employer firm startups in US secular decline
Innovation Union Scoreboard 2015: Sweden, Denmark, Finland and Germany are on top
Education systems failing to provide students with skills for success in 21st century
US, Switzerland, Denmark, Sweden, Finland have best higher education systems
Handbook of Service Innovation: Ireland moving up the value chain?
Switzerland revives silk industry that thrived for two centuries
Sales of Irish tech firms create 300 millionaires in 15 years and no scaleups
Apple warns of 'material' tax payments from EU's Irish tax investigation
Apple earnings surge 33% on higher price and iPhone sales jump in China
Big Pharma's internationalisation of R&D to China
The dangers of romanticising entrepreneurs despite key role
UK and Irish business R&D heavily reliant on foreign-owned firms
Silicon Valley and the development of the silicon microchip - Part 2
Ireland: Innovation with or without R&D/ scientific breakthroughs
UK government most open/ transparent in world; Ireland & Greece lowest ranking in Europe
10 questions about Switzerland's Solar Impulse aircraft – answered
Silicon Valley loses its silicon; Typical household income stagnates - Part 1
21st century skills are 18 century skills + a computer
Growing ICT sector in Europe accounts for 5% of employment
Should Ireland copy Singapore's scientific research investment plan?
Startups vs Scaleups: 4% of UK startups have 10+ employees 10 years later
Irish patent filings at European Patent Office fell in 2014
Facebook's maze of privacy settings maybe in breach of European law
Apple to invest €1.7bn in Irish and Danish data centres
Silicon Valley insider warns of dodgy $1bn valuations of private companies
Israel's Startup Nation not a jobs engine; Nor is Irish high tech
Established industries often beat new technology investment returns
Ireland: Noonan said EU to drop Apple tax case; Now expects court case
Irish R&D Tax Credit: No evidence of rising business innovation; Facts don't matter
Apple reports biggest profit of a public company in history