Posted on May 29, 2014 in Press
Apple Inc. is paying slightly less than $500 million for the Beats Music streaming service, and more than $2.5 billion for Beats Electronics in its $3 billion deal, according to people familiar with the matter.
The valuation of the $10-a-month streaming service, which counts 250,000 paying subscribers, is generous based on its subscriber numbers. Spotify AB, which has 10 million subscribers world-wide, raised $250 million in November at a valuation of $4 billion, or $400 per subscriber. By that measure, Beats would be worth $100 million.
Calculating subscribers’ worth “is clearly not how they got there,” said Triton Research analyst Rett Wallace.
![Apple Paying Less Than $500 Million for Beats Music Streaming Service WSJ_noTag_Black_001](http://media.triton.ai/wp-content/uploads/2013/05/WSJ_noTag_Black_001-662x56.png)
Read full article at wsj.com