It's Thursday, May 29th.

Welcome to Market Flory.

I'm Chris Hill joining me in studio today for Motley

Fund, Tim Hanson.

Once again, just a two of us.

It's intimate gathered, and I enjoy every minute of it. We're going to talk

emerging markets. We're going to talk about the business of whiskey courtesy of a

business of whiskey, by one of our listeners.

Let's start with the deal of the day, though,

and that is Apple buying beats for 3 billion, 2.6 billion in cash, 400 million in stock. We knew this

deal was in the works for a while. The final price tag was a little bit lower than originally reported a couple of weeks

ago.

What do you think of this deal beyond the fact that Apple has gotten beats for a slightly lower

price? I think there are a couple interesting thrills. gotten beats for a slightly lower price.

I think there are a couple interesting threads to pull out of this.

You know, the first is that in a market where valuations have been just crazy for properties.

You know, Apple, you know, 3 billion is a big number, but I think Beets is rumored to have between 1 and 1.5 billion in sales.

When they were last reporting numbers publicly, which is when they were majority

owned by the company HTC, I think they had like a 10% operating margin. So, call that 100 to 150 million dollars in operating

earnings and the multi and the multiples don't look crazy if Apple can can do

something with it and also people are kind of gawking at the price tag but look at the size of

Apple and its balance sheet this for them is right it's I mean it's almost a

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