Apple – Beats Deal Is 30% Not Happening

Source with connections to the two companies says Apple wants to hire Dre and Iovine

By Filip Truta on May 23rd, 2014 13:16 GMT

Apple’s multi-billion acquisition of Beats Electronics is reportedly still happening, but it’s not a certainty. According to a person with ties to both companies, there’s a 70% chance the papers are going to be signed, moving Dr. Dre and Jimmy Iovine in Apple’s domain as employees.

The tidbit goes like this: “A well-placed source has confirmed rumors that Apple’s acquisition of Beats ‘is happening’ but was close to falling apart multiple times. The source said with ‘70% certainty’ that Apple’s planned multi-billion-dollar acquisition of headphone maker Beats will go through. But Apple isn’t buying Beats for the technology; it’s buying the talent.”

A pessimistic take would be that the deal is 30% not happening, which you’ll agree is a fair number to consider the alternative. But 70 wins over 30, so the likelihood of Apple changing its mind is not something worth speculating too much. If the terms have already been reached and if Dre stops shooting “billionaire boys club” videos, everything should go smoothly from here.

Speaking of which, if the deal doesn’t go through, Dre will have made a fool of himself bragging about being a billionaire without actually being one. But let’s hope for everyone’s sake that such a thing won’t happen. Plus, Apple seems keen on acquiring the people, not the Beats gear or music service.

“They want Jimmy and they want Dre,” the source added. “He’s got fashion and culture completely locked up.”

It isn’t clear who the “he” in this remark was, but it’s probably reasonable to assume the source was referring to Dre. Iovine, however, is just as valuable. A record industry guru, he could well reignite Apple’s music business by signing new deals with record labels and even making a push for expanding Apple’s TV business.

As far as the Beats headphones are concerned, they’ve received mixed reviews but have been lauded as some of the best in their category. The Beats headphones are also superior to Apple’s own EarPods, something that might change soon as a result of the acquisition.

Apple could create new headphones designed with the help of Beats Electronics’ engineers and bundle them with iPhones and iPods. Strangely, one source was quoted as saying a while ago that Beats would continue to live under its original name even after getting engulfed by Apple. Which is certainly interesting, considering how careful Apple is associating its brand image with others.
Jimmy Iovine and Dr. Dre
   Jimmy Iovine and Dr. Dre
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