Mikey Campbell
A report on Thursday claims Apple's much rumored deal to buy Beats Electronics "is happening" and will be a play for company cofounders Jimmy Iovine and Dr. Dre, not technology associated with streaming music or headphones.
Citing a "well-placed" source familiar with the ongoing talks, TechCrunch affirms what a number of pundits have already speculated; that Apple is looking to "acqui-hire" Iovine and Dre, whose real name is Andre Young, in a rumored $3.2 billion deal to buy Beats.
The person went on to say that the Apple-Beats tie-up "is happening," but nearly fell apart multiple times. The source is not completely confident of the acquisition's fate, however, and can only say with "70 percent certainty" that an agreement will be reached. Later in the report the person hedges that number by noting "the deal hasn't fallen apart yet."
In the days following initial word of Apple's interest in Beats, The Wall Street Journal reported Iovine and Young would take senior positions at Cupertino if an acquisition was made. Their respective roles are unclear, though Iovine would likely have to leave his seat as chairman of record label Interscope Geffen A&M to move to Apple.
Another report claimed Iovine was in separate discussions to serve as a "special advisor" to Tim Cook, though the possibility of that happening appears unlikely.
Beats is currently operating as both a hardware and a software business. Despite mediocre reviews from critics, the firm's high-margin headphones are some of the most popular models on the market. In January the company launched a subscription-based streaming music service called Beats Music that accrued an estimated 110,000 paying subscribers as of March.
Apple is said to be in the final stages of acquiring Beats for a supposed $3.2 billion, an announcement of which was expected last week. A follow-up report on Friday said official word would be pushed back to this week, while a separate report posits Iovine and Young could take the stage at this year's WWDC in June to be formally introduced as new Apple executives.
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114 Comments
That's insanely stupid. Two people who might get run over by a bus tomorrow? Two people are worth $3.2 billion? I just don't see it. On the other hand, if they are managing an "account" to hire profitable acts to become a part of a new Apple music label... that could put the fear of, well, [I]something[/I], into the hearts and minds of content-owning companies.
Very expensive aqui-hire considering what Apple spent to get Steve Jobs back. Fashion & culture? I thought Apple already had that. Unless this is Tim Cook pandering to African-Americans and teenagers?
Fashion and culture ? Locked up ? phfffft insanity
[quote name="AppleInsider" url="/t/179928/apple-wants-beats-for-jimmy-iovine-and-dr-dre-not-technology#post_2538148"] The person went on to say that the Apple-Beats tie-up "is happening," but nearly fell apart multiple times. The source is not completely confident of the acquisition's fate, however, and can only say with "70 percent certainty" that an agreement will be reached. Later in the report the person hedges that number by noting "the deal hasn't fallen apart yet." [/quote] And now that there's another leak, the certainty just dropped to 20%.
Maybe more... maybe more.