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Apple wants Beats for Jimmy Iovine and Dr. Dre, not technology

post #1 of 114
Thread Starter 
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.


Source: Beats Music


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.

"They want Jimmy and they want Dre," the unnamed source said. "He's got fashion and culture completely locked up."

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.
post #2 of 114
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, something, into the hearts and minds of content-owning companies.

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post #3 of 114

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?

post #4 of 114
Fashion and culture ? Locked up ? phfffft
insanity
post #5 of 114
Quote:
Originally Posted by AppleInsider View Post


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."

And now that there's another leak, the certainty just dropped to 20%.
post #6 of 114
Quote:
Originally Posted by quinney View Post


And now that there's another leak, the certainty just dropped to 20%.

 

Maybe more... maybe more.

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post #7 of 114
Quote:
Originally Posted by SpamSandwich View Post

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, something, into the hearts and minds of content-owning companies.

If Apple is getting into the content creation business, i'd rather see them creating good TV programming rather than trying to build a record label.

post #8 of 114

The headline does not have to say "Not for technology." Does Beats have technology, first of all?  THey just have stylized super sized headphones.

post #9 of 114
Is this some sort of a sick joke?
post #10 of 114
Quote:
Originally Posted by JD MBA View Post

Is this some sort of a sick joke?

Just wait putting lipstick on the pig will happen soon.

post #11 of 114
From sure thing to 70%? How long until the deal is cancelled. (Allegedly)
post #12 of 114
Makes sense actually. There's rumors of a revamped AppleTV in which Apple could be looking for content deals in which case Iovine would be invaluable, Dre to a lesser extent.

The only thing that doesn't really make much sense is the price. As well connected as Iovine and Young are, are they really worth $3.2 billion?
post #13 of 114
Who is the "well-placed source"?

There has been so much "well-placed source" reports that is better to wait for a word from Apple... If the deal happens!
post #14 of 114
Quote:
Originally Posted by Rogifan View Post
 

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?

 

Apple is obviously a fashion forward company in the technology world, but I don't see the problem with them looking to improve in an area where they already lead.  Fashion and style is a huge differentiator between Apple products and competitors and it gives Apple products cachet that others just don't possess.  Let's be honest, Samsung products aren't selling in massive quanitites because they're pretty.

post #15 of 114
I think most people have a problem with the price tag nothing else. For those of you who thinks that, then you need to take economics 101. Beats generated over $1.3 billion last year ok, you many not think much of their headsets the fact is a lot of people do and they are paying a premium for them. When this deal was first rumored that was the only scenario that made sense for apple. If apple introduce a streaming service then their downnload business would collapse almost overnight. You don't just throw away that kind of money when you have nothing else to make up for it. So buying beats will allow apple to have a streaming serving (which by the way is also on all the other platform) while milking the download business to the end. On top of that you get beats hardware which are hip and making money heads over fist. To tap that off you get a music exec with connections with labels and artist to run that business for you. That makes all the sense in the world to me and lets not forget none of the streaming services are making money. Spotify soon or later will have to stop bleeding red and if they can't, they will either be acquired or shut their doors. The way things are now only the platform holders will survive since they will be able to use their other business to prop up their streaming until it can fully stand on its own.
post #16 of 114
Quote:
Originally Posted by DroidFTW View Post

Apple is obviously a fashion forward company in the technology world, but I don't see the problem with them looking to improve in an area where they already lead.  Fashion and style is a huge differentiator between Apple products and competitors and it gives Apple products cachet that others just don't possess.  Let's be honest, Samsung products aren't selling in massive quanitites because they're pretty.
How is bringing on Iovine and Dre improving Apple's fashion? When I think of fashion and design I don't think of those two.
post #17 of 114

The legal cases pending will most likely kill the deal.

post #18 of 114

Please let this whole deal fall apart, and then we wont have to read any more silly rumors about this silly rumor.

 

And just who are these anonymous sources that are leaking this info? Are there so many people out there who have inside information about this supposed deal, that they would be able to leak info without being revealed?

post #19 of 114
Quote:
Originally Posted by Rogifan View Post

How is bringing on Iovine and Dre improving Apple's fashion? When I think of fashion and design I don't think of those two.

 

You may not, but others sure do.

post #20 of 114
Quote:
Originally Posted by toukale View Post

For those of you who thinks that, then you need to take economics 101. Beats generated over $1.3 billion last year ok, you many not think much of their headsets the fact is a lot of people do and they are paying a premium for them.

 

Even if that number were true, then so what?

 

Apple's good name and reputation is worth far more than a measly 1.3 Billion, and the damage could easily be greater than that.

post #21 of 114
Quote:
Originally Posted by toukale View Post

I think most people have a problem with the price tag nothing else. For those of you who thinks that, then you need to take economics 101. Beats generated over $1.3 billion last year ok, you many not think much of their headsets the fact is a lot of people do and they are paying a premium for them. When this deal was first rumored that was the only scenario that made sense for apple. If apple introduce a streaming service then their downnload business would collapse almost overnight. You don't just throw away that kind of money when you have nothing else to make up for it. So buying beats will allow apple to have a streaming serving (which by the way is also on all the other platform) while milking the download business to the end. On top of that you get beats hardware which are hip and making money heads over fist. To tap that off you get a music exec with connections with labels and artist to run that business for you. That makes all the sense in the world to me and lets not forget none of the streaming services are making money. Spotify soon or later will have to stop bleeding red and if they can't, they will either be acquired or shut their doors. The way things are now only the platform holders will survive since they will be able to use their other business to prop up their streaming until it can fully stand on its own.

I agree with what Marco Arment said on the last Accidental Tech Podcast. He recently tried out Beats headphones in an Apple store and said they were awful. He said Beats is essentially what Apple haters claim Apple is - OVERPRICED. Or the only reason people buy Apple products is because of slick marketing and design. The last thing Apple needs is to be associated with a brand that is considered overpriced. Also, for me Apple stands for quality. Tim Cook and Jony Ive have both said Apple's goal is not about revenues, but to make great products. And if you make great products the revenues will follow. To me Beats is the complete opposite of that. It's basically saying, who cares if it's a great product or not because it makes money. If that's what Apple is about now then that's really sad.
post #22 of 114
Quote:
Originally Posted by DroidFTW View Post

You may not, but others sure do.
Yeah Beats are a fad. Apple would be buying them at the height of their popularity. And when they go out of fashion then all Apple has is crappy headphones. I've said it before and I'll say it again that Samsung marketing must have really got to Apple. To me this seems all about Apple thinking it's not cool anymore (especially with young people) and spending $3B to try and buy some cool. Sad.
post #23 of 114

The more I read about this rumored acquisition, especially this article, the more I think this isn't likely to happen.

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post #24 of 114

What is it about apple that makes people go nuts for no good reason.  This is a perfect example why none of you are a CEO . If all you can think about this deal is apple trying to buy cool then you just don't get it.

post #25 of 114

Is Iovine Cook's replacement? That's the only way I see spending anywhere near this amount of money if it's just for the talent.

post #26 of 114
Quote:
Originally Posted by toukale View Post
 

What is it about apple that makes people go nuts for no good reason.  This is a perfect example why none of you are a CEO . If all you can think about this deal is apple trying to buy cool then you just don't get it.

 

OK, Sir.

Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #27 of 114
Quote:
Originally Posted by Hopeless View Post
 

Is Iovine Cook's replacement?

 

No.

Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #28 of 114

Leo Laporte believes this entire rumor is the creation of Iovine and Dre. I tend to believe him more and more as the rumors increase.

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post #29 of 114

Tim Cook once said that he will never hire a "VP of innovation" because doing so would mean there was a problem at Apple. Well, what do you think he's doing with his recent hires? He is offloading the task of ideation to others and managing the scene. I am a little conflicted about how I feel about this, but then again, Cook's strengths are managerial and not creative. He is not a visionary. Maybe this is what Apple has needed.

post #30 of 114

How does everyone feel Iovine and Dre will fit into Apple's corporate culture?

post #31 of 114
Quote:
Originally Posted by Hopeless View Post

Is Iovine Cook's replacement? That's the only way I see spending anywhere near this amount of money if it's just for the talent.
I thought Angela Ahrendts was his replacement?
post #32 of 114
Originally Posted by mdriftmeyer View Post
The legal cases pending will most likely kill the deal.

 

But they’re the result of the deal. It’s people cashing in on the 3.2 billion. :p

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #33 of 114
Quote:
Originally Posted by AZREOSpecialist View Post
 

Tim Cook once said that he will never hire a "VP of innovation" because doing so would mean there was a problem at Apple. Well, what do you think he's doing with his recent hires? He is offloading the task of ideation to others and managing the scene. I am a little conflicted about how I feel about this, but then again, Cook's strengths are managerial and not creative. He is not a visionary. Maybe this is what Apple has needed.

 

Is Ive quitting?

na na na na na...
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na na na na na...
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post #34 of 114
Quote:
Originally Posted by island hermit View Post

Is Ive quitting?
Maybe he'll retire if this deal happens.
post #35 of 114
Jimmy Iovine and Dr. Dre will be running the new Apple music and content business. Negotiating deals with studio and labels directly.
post #36 of 114

Sorry, but this rumored deal has never passed the bulls**t test as far as I'm concerned. And for the amount of e-ink spilled, nobody ever shown a credible clue it is really happening.

 

Just more of the same with some "journalist" hedging his bet saying the deal almost fell apart.

post #37 of 114
Quote:
Originally Posted by toukale View Post

What is it about apple that makes people go nuts for no good reason.  This is a perfect example why none of you are a CEO . If all you can think about this deal is apple trying to buy cool then you just don't get it.

What is it about AI that every act of Cook ( who is not Apple) is defended with meaningless contentless arguments.

If this went ahead and nothing came of it - why Iovine could get more content than Apple is beyond me ( plus the right to music have to be negotiated worldwide not just in the US) -and either of these two buffoons make a laughing stock of Apple which is likely then Cook will be removed by the board.

He's clearly floundering to me. No idea what to do with the cash flow, stock buy backs are just throwing a bone to the market, and the new products "throughout" 2014 are nothing more than vapourware so far. It looks like a new iPhone. That's it. Maybe a new iPad. The Apple TV seems dead. If they get into wearables it will be next year at the earliest.

Cook has little vision. I have no idea who could run Apple, but it shows how most companies flounder in the abscence of their founders.
I wanted dsadsa bit it was taken.
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I wanted dsadsa bit it was taken.
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post #38 of 114

IMO, Beats could have Iovine and Dre, plus the technology, plus a reincarnate Steve Jobs, and still not be worth $3B.

post #39 of 114
Jimmy Iovine's name is an anagram for "I'm, I'm Jony Ive"

Be afraid… be very afraid...
post #40 of 114
Quote:
Originally Posted by AZREOSpecialist View Post
 

How does everyone feel Iovine and Dre will fit into Apple's corporate culture?

I don't believe they have to be the perfect fit but I'm sure there are some compromises that can be met.  Iovine and Dr. Dre are businessmen and I'm sure they have very good connections to the music business that Apple could use.  They're probably going to be used strictly as advisers and so they probably won't be punching a clock.  They may have a few meetings every so often and come up with ideas.  I honestly don't see how spending $3.2 billion is going to hurt Apple in any way even if the deal doesn't turn out perfectly.  I'm sure Apple will get at least a few billion dollars back from the deal in a year's time.  If Apple does establish some sort of record label I'm sure this deal will be worth every penny.  I'd certainly like to see Apple get into the content business and these two men definitely know how to create content.

 

So, I think Iovine and Dr. Dre will be good for Apple strictly as advisers and mostly given free reign.  I don't know their individual personalities, but maybe true artists never fit that well into a corporate environment.  These two guys are leaders and are capable of working on their own instead of blindly following orders.  I wouldn't think that Steve Jobs would have fit in a corporate environment because he didn't take crap from anyone and did his own thing.  Steve definitely wouldn't have been considered a team player if that's what you're talking about by fitting into a corporate environment.

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