Friday, May 09, 2014, 05:28 pm PT (08:28 pm ET)
Beats acquisition would give Iovine and Dr. Dre senior positions at Apple, report saysContinuing with ongoing reports and speculation surrounding Apple's rumored buy of Beats Electronics, a report on Friday claims the music company's cofounders, Jimmy Iovine and Dr. Dre, would likely net senior positions in Cupertino if a deal does indeed happen.
Source: Beats Music
Citing sources familiar with the matter, The Wall Street Journal reports that the two Beats executives would move to senior positions at Apple in the case of a buyout. Discussions over a $3.2 billion acquisition are said to be in their final stages, according to a slew of reports on Thursday.
Apple buys Beats
Apple has confirmed it will buy Beats for $3 billion, making it the company's largest acquisition ever. Beats is best known for its premium headphones, but also recently launched a subscription music streaming service that was the key to Apple's interest.
Full coverage of Beats & Apple
A report yesterday claimed Iovine was in talks to become a "special advisor" to Apple CEO Tim Cook, but did not mention Young's role in the process. At the time, it was speculated that the music exec would enter Apple under a so-called "acqui-hire" agreement that could feasibly be extended to Young as well.
Although pundits and analysts have questioned the motives behind Apple's as-yet-unannounced acquisition, there are benefits to be had from a Beats buy.
For example, aside from its popular audio hardware lineup, the Beats brand built out a relatively successful music streaming service. Defenders of the Apple-Beats tie-up say Beats Music and the Beats management team could serve as underpinnings for future content negotiations.
Despite Iovine being a close personal friend of Apple cofounder Steve Jobs, he never had a tangible impact on the Cupertino, Calif. company's products aside from working on various marketing collaborations with big-name artists. With Cook now at the helm, Apple may be more open to having both Iovine and Young on board.
Carrying substantial clout in the industry, as well as fresh ideas regarding music distribution, the Beats executives could be worth the rumored $3.2 billion investment in the long term.
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