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Saturday, May 10, 2014

Updated: Following Acquisition Rumors, Beats' CEO Is Said To Be In Talks To Join Apple

A matter of hours ago, a report noted that Apple could be planning on acquiring Beats Electronics, the music company behind a series of popular hardware and software products including the Beats Music streaming service. Now, a further report is noting that instead, Beats CEO Jimmy Iovine is in talks to join Apple as a “special advisor” to Tim Cook.
The news comes from the New York Post, which explains:
Beats Electronics boss and veteran music industry executive Jimmy Iovine is in talks to join Apple as a “special adviser” to Tim Cook on creative matters, two sources close to talks tell The Post.
Iovine, who is the co-creator of Beats with partner Dr. Dre, is also chairman of Universal Music Group’s Interscope, Geffen and A&M labels, home to Lady Gaga and Eminem, among others.
We indeed explained earlier that Apple could be planning on acquiring Beats Electronics, citing a report from The Financial Times which noted that the deal could cost Cupertino some $3.2 billion. It was surprising news, especially since Apple doesn’t often make such grand acquisitions.
As such, if the deal went through, a Beats Electronics acquisition would be Cupertino’s largest to date. Our report noted:
For the huge sum, Apple would be getting a company well known for its popular line of headphones. Even though the brand isn’t taken seriously by audiophiles, Dr. Dre’s involvement has made Beats headphones a staple of music fans.
Probably more important is Beats streaming music service. Launched earlier this year, Beats Music has entered a crowded market to compete against Rdio, Spotify, and others.
Hiring Beats CEO Jimmy Iovine wouldn’t necessarily be out of character for Cupertino, however. Apple recently bolstered its executive team with its high profile hire of Angela Ahrendts, the former CEO of Burberry who is now overseeing Apple’s retail efforts.
Hopefully we’ll have more information concerning Apple’s interest in Beats Electronics in the near future. We’ll keep you posted on this front.

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