Update on 5-09-2014 by Ryan Waniata: News that Jimmy Iovine may be coming on staff with Apple as a "special advisor" to Tim Cook has been added to this article
According to the report, if successful, the acquisition would be the largest in the Cupertino tech giant's history. "People familiar with the negotiations" said the deal could be announced sometime next week, but final details at this point are still rolling in.
What we do know is that the deal will purportedly include all of Beats Electronics' services. That includes the company's somewhat struggling new Spotify competitor, Beats Music, as well as the entire equipment line, which offers a host of headphone models, portable speakers like the Beats Pill, and other audio gear.
Acquiring Beats would fill a lot of holes for Apple, not the least of which would be a replacement for its critically maligned EarPods. If approved, Apple would suddenly have its pick of a myriad of flashy cans to package with the iPhone, which has seen a major dip in growth over the last few years.
In a pre-WhatsApp world, this kind of deal may have had more shock factor. Once Facebook threw down $19 billion for an app, finances between tech firms all became a little more hazy. Still, the $3.2 billion price tag is a hefty price to pay to take control over Dr. Dre's baby, which had a reported value of around $1 billion in September of last year, according to the Times.
But then again, you can't put a price tag on hip. And along with some audio prowess, that's really what Apple is buying here. Turn on the TV and wait a while and you'll likely see an athlete, TV character, or movie star wearing a pair of Beats headphones. If Apple is successful in its efforts, in a few weeks, all of those flashy young stars will be sporting Apple gear. That alone may be worth the price of admission.
We've also learned from a report dropped by the New York Post that another big piece of the Beats puzzle for Apple seems to be the addition of the musically gifted mind of Beats co-founder, Jimmy Iovine. A huge portion of the success of Beats can be attributed to Iovine, who, when he's not cultivating his exploding headphone brand, also moonlights as chairman of a few music labels under Universal Music Group, including Interscope, Geffen, and A&M records. Iovine's resume is littered with a star-studded cast of huge artists, including most recently Eminem (who partnered with Dr. Dre when he first emerged if you'll recall), and Lady Gaga, as well as a few other familiar names like Bruce Springsteen, John Lennon, Tom Petty, Dire Straits, and U2.
If the rumors are true, Iovine would leave Universal Music Group when his contract expires at the end of 2014 to join Apple as a "special adviser" to CEO Tim Cook. A stalwart industry insider and hit maker, Iovine would bring a wealth of invaluable knowledge to the table, as well as a spark for creativity and innovation – something that Apple has been short on lately when it comes to the music business. The company that pioneered the modern MP3 paradigm with iTunes has scene its grip on the market slipping in recent years as streaming services like Spotify, Pandora, and Beats' own Beats Music have grabbed a nice slice of the market share, helping to deepen the decline of music downloads. It appears Apple's strategy with Beats reaches much deeper than headphones.
We're still seeing details come in, so stay with us to follow the story as it unfolds. What do you think? Are you a Beats fan, or part of the Apple faithful? Will the union have you split between the two? Let us know in the comments.
From BEN Latest News: www.benlatestnews.com
Follow us on Twitter: www.twitter.com/benlatestnews
0 comments:
Post a Comment