May 19, 2020

Apple’s Beats by Dre now the NBA’s official headphone supplier

Apple
NBA
Beats by Dre
Beats
erptre fusion
2 min
Apple’s Beats by Dre now the NBA’s official headphone supplier
Beats by Dre, bought by Apple for US$3bn in 2014, has become the official headphones partner of the National Basketball Association (NBA)
 
The deal’s value has not been disclosed, although CNBC reports that “the NBA is set to attract an estimated $1.12 billion in sponsorship deals for the 2017-2018 season”.
 
CNBC added that this is the first instance in which the NBA’s sponsorships deals have breached $1bn, having hit $861mn the season prior.
 
“One of the sports world’s longest-running love affairs has been that between NBA players and their Beats headphones”, The Verge commented.
 
“Many wear the brand without even being paid for it, which has helped to cement its reputation as the favorite accessory of sportsmen in the US”.
 
Beats was founded in 2006 by Andre Young (NWA’s Dr Dre) and producer Jimmy Iovine with a focus on design and sound quality.
 
Products will be provided to NBA stars, such as LeBron James, Steph Curry, and Kevin Durant, with team-specific and branded headphones to shortly become available for fans.
 
Luke Wood, President of Beats by Dre, said: “Basketball, music, and style speak one voice: Julius Erving became a style icon, Allen Iverson cemented hip hop’s place on and off the court and LeBron James is breaking new music every day”.
 
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In commemoration of the deal, the NBA and Beats released a short video starring LeBron, James Harden, Draymond Green, Ben Simmons, Jayson Tatum, and Karl-Anthony Towns.
 
CNBC said fans can expect further collaborations at events including the NBA All-Star games in February, the NBA Draft next summer, and exhibition games in Europe and the Far East.
 
Elsewhere in the world of sports, Beats by Dre has also extended its deal with the UK’s Chelsea Football Club as its Official Sound Partner. The deal will run for three years, ending with the 2020-21 season.
 

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May 15, 2021

M&A activity key lever for future tech sector growth

Technology
dealmaking
EY
M&Aactivity
Kate Birch
2 min
With M&A activity in the technology sector soaring, dealmaking is likely to be the key lever for growth as businesses look to recover post-pandemic

Despite the continuing uncertainty of the pandemic, the tech sector has witnessed soaring dealmaking activity over the past year, rocketing in the second half of 2020, with the last quarter of 2020 a record one for M&A activity, and momentum continuing into 2021.

Dealmaking in tech sector soars in past year

And the latest figures bear this out with the number of technology M&A deals totalling US$208.44bn globally in Q1 2021, according to GlobalData. While the US holds top spot both in volume of deals (1034) and total value (US$140.61bn), Europe ranked next with 649 deals (US$44.49bn) with the UK continuing its reign as Europe’s biggest M&A market with 204 deals.

In particular, megadeals – those valued at US$5bn or more – soared in 2020 representing 59% of all global technology sector deal value in 2020, up from 47% in 2019, according to the latest edition of the EY Technology Global Capital Confidence Barometer.

This tech sector trend towards megadeals is backed up by EY’s CCB data, with 16% of tech sector respondents planning to pursue transformative deals valued at US$5bn or more in the near-term.

While technology deal activity “all but stopped at the beginning of 2020 after fluctuating between historic highs and lows, companies pivoted quickly and tech M&A exploded in the second half of the year”, says Barak Ravid, EY Global TMT Leader for Strategy and Transactions. 

M&A activity level for tech sector growth

Looking ahead to the future, technology executives are optimistic, with nearly half (47%) expecting profitability to fully rebound this year, according to CCB data, compared to 23% across all sectors, and with more than half (51%) planning to pursue M&A in the next year in order to sustain growth.

According to Ravid, M&A activity is increasingly becoming a key lever for growth as businesses look to recover.

“To position themselves for future revenue growth, tech companies are now adjusting their M&A strategy to focus more on a target’s business resilience, digital technology alignment and to gain market share through consolidation,” says Ravid.

However, with an increasingly competitive deal market and ongoing geopolitical tensions, the majority of tech execs expect to see more competition in the bidding process for assets over the next year, primarily from private capital.

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