It looks like the Apple-Bets deal might not go through after all. A flurry of concerns reportedly engulfed the Cupertino giant after the rumors broke out, and the “Millionaire Boys Club” stunt that Dr. Dre pulled without the papers being signed has severely ticked off the black suits at Apple Inc.
Rumors of the deal in question first started about two weeks ago. Since then, the acquisition has been delayed not once, but twice. The latest reports said Apple was 70% determined to sign the papers. Another way to put it was to say the deal was 30% not happening.
One of the big questions the Mac maker is said to be pondering is “How Will Jimmy Iovine and Dr Dre Fit In?”
Two music industry heavyweights, Iovine and Dre would nab pretentious positions within the Apple organization, something Tim Cook & Co. may not think they deserve.
Billboard has heard from sources in the entertainment industry that Apple has “concerns as to whether they’ll fit in or if they would be best as permanent consultants rather than full-time executives.”
These sources also tell the magazine that “there is still some discussion around figuring out the valuation of Beats Music.” The service has very few users compared to rivals Pandora and Spotify, but it’s said to be growing quickly, and several adjacent partnerships could help foster new growth.
However, it’s all very uncertain, and the $3.2 billion / €2.3 billion purchase price is starting to look like a bit too much, even when you factor in the Beats headphone technology.
But perhaps one of the biggest reasons behind the delay has nothing to do with Beats’ actual valuation as a company. One person briefed on the matter reportedly said “Apple was nowhere near ready to have this news break as it tries to work out what exactly it’s getting for $3.2 billion.”
Adding insult to injury, “the Apple family near imploded with outrage when that video went up on Facebook of an ‘excited’ Dr. Dre with R&B singer/former Coca Cola pin-up Tyrese.”
Experienced Apple tech writers covering the subject, including ourselves, have echoed a great deal of concern regarding Dre’s infantile behavior in a clip meant to taunt rivals in the music industry, where he proclaims himself the first billionaire in hip hop.
Tyrese Gibson, the person who was supporting Dre’s bragging parade with a camera turned over to their faces at a studio celebration, distinctively said that Dre had entered the “billionaire boys club,” adding that Forbes will be required to update their rich-people list.
That’s certainly not the type of behavior Apple expects from a partner. Multi-million dollar acquisitions have been dropped for a lot less, so for the multi-billion nature of this particular deal, Tim Cook probably demands a lot more seriousness.
We wouldn’t be surprised if the billionaire-boys’ clip was enough to make Apple change its mind about Dre taking up a top-ranking executive position at 1 Infinite Loop, Cupertino, California.