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Old May 28, 2014, 04:34 PM   #1
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Apple Announces $3 Billion Beats Acquisition, Jimmy Iovine and Dr. Dre Joining the Company




Apple is buying Beats Electronics and the Beats Music streaming service for a total of $3 billion. The acquisition is the largest in Apple's history and is the biggest move by CEO Tim Cook since he took the reins from Steve Jobs several years ago.

Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as full time employees, with both reporting to iTunes head Eddy Cue. In an interview with The New York Times, Cook said Iovine and Dre were "really unique" and that "it's like finding the precise grain of sand on the beach. They're rare and very hard to find."

Cook said that "of course" Apple could have built a subscription music service rather than buying one, just like the company could have built all the technologies that it has acquired over the years. "You don't build everything yourself. It's not one thing that excites us here. It's the people. It's the service."

In the Times, Cook promised new features for Beats that will "blow your mind" as well as "products you haven't thought of yet". He promised the team would "take music to an even higher level than it is now."

Jimmy Iovine, Tim Cook, Dr. Dre and Eddy Cue
In an interview with Re/code, Cook said that Apple felt Beats was the first subscription music service to "get it right:
Quote:
We get a subscription music service that we believe is the first subscription service that really got it right. They had the insight early on to know how important human curation is. That technology by itself wasn't enough -- that it was the marriage of the two that would really be great, and produce a feeling in people that we want to produce.

[...]

But mostly, backing up -- it's because we always are future-focused. So it's not what Apple and Beats are doing today. It's what we believe pairing the two together can produce for the future.
Apple has seen rumors of a interest in a subscription music service for close to a decade, with Jobs saying in 2007 that customers "don't seem to be interested" in music subscriptions. The New York Post said in 2010 that Apple was negotiating with record labels on such a service, though nothing ever came of it.

Earlier this month, Spotify reported that it has 10 million paying subscribers to its music service, showing that many customers are now interested in such a service.

The Wall Street Journal says Iovine will quit as chairman of Interscope records to work full time at Apple. Dr. Dre will continue to produce music but do "as much as it takes" for Apple. The two men's titles will reportedly be "Jimmy and Dre". In a letter to employees, Tim Cook confirmed that the entire Beats team will be joining Apple under Eddy Cue and noted the company's commitment to curated content.
Quote:
Both Apple and Beats believe that a great music service requires a strong editorial and curation team, and we will continue to expand what we do in those areas. The addition of Beats will make our incredible iTunes lineup even better, extending the emotional connection our customers have with music.
Eddy Cue and Jimmy Iovine will appear tonight on stage at the Code Conference.

The acquisition will include $2.6 billion in cash and another $400 million that will vest over time. Apple expects the transaction to close sometime next quarter. The Beats Music iOS app has been updated with an extended 14-day trial period and a price drop to its yearly subscription to $100 from $120.

Beats Music is a free download for the iPhone and iPad. [Direct Link]

Article Link: Apple Announces $3 Billion Beats Acquisition, Jimmy Iovine and Dr. Dre Joining the Company
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Old May 28, 2014, 04:36 PM   #2
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WOW...so, it eventually happened! Hope we see some positive/beneficial outcomes out of this.
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Old May 28, 2014, 04:36 PM   #3
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Obscene amount of money.
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Old May 28, 2014, 04:36 PM   #4
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Oh no. Not good.
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Old May 28, 2014, 04:36 PM   #5
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Dre made the best deal of his life, Apple one of their worst.
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Old May 28, 2014, 04:36 PM   #6
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I think I'd be more excited about them acquiring fresh beets from Schrute Farms.


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Old May 28, 2014, 04:36 PM   #7
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I don't remember the last time an announcement was made of this caliber. You can't pull out the "we buy smaller companies from time to time" line now.
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Old May 28, 2014, 04:36 PM   #8
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If someone had told me a few months ago that Dr. Dre would be joining apple I would have never in a million years believed it. Pretty cool.
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Old May 28, 2014, 04:36 PM   #9
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I guess the premature acknowledgement cost them about $200m.
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Old May 28, 2014, 04:37 PM   #10
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Let's hope they improve the quality of Beats headphones. They are very badly made, but cost the earth! It is however a very strong brand, with a huge celebrity following. Beats products seems to appear in every music video these days.
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Old May 28, 2014, 04:37 PM   #11
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Time will tell. I wonder is Eddy is nervous about his role? Smile seems forced. : )
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Old May 28, 2014, 04:37 PM   #12
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Coming soon: iBeats. I really wish this was a joke. Wonder if they'll get executive positions at Apple.
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Old May 28, 2014, 04:37 PM   #13
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“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine.

Yeah, you WOULD say that...
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Old May 28, 2014, 04:37 PM   #14
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This is the first time I think the cliche is actually true. I don't think this would have happened under Jobs. He would have insisted that their culture is irreproachable and they need not import another company to make a positive culture shift. I wouldn't say I admired that arrogance, but it was always entertaining to see the confident proclamation that they make the best products, no questions asked.
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Old May 28, 2014, 04:37 PM   #15
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So it's finally official. Now we get another week of "why?" articles.
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Old May 28, 2014, 04:37 PM   #16
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It really is a smart move for Apple, two companies that have high prices and very hyped devices.
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Old May 28, 2014, 04:37 PM   #17
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I'm looking forward to see what this brings, yes Beats aren't the best in the world but I have a pair and I really like them just wish they were a better colour (mine are black).
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Old May 28, 2014, 04:37 PM   #18
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Congrats to Dr.Dre! Owning only 25% wow what a payoff. Great acquisition by Apple !!
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Old May 28, 2014, 04:37 PM   #19
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Quote:
Ive always known in my heart that Beats belonged with Apple, said Jimmy Iovine.
I just threw up a little.
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Old May 28, 2014, 04:37 PM   #20
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From crap earbuds to crap headphones.
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Old May 28, 2014, 04:37 PM   #21
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So its finally happening
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Old May 28, 2014, 04:37 PM   #22
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That sickens me so much I think I need a doctor.
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Old May 28, 2014, 04:38 PM   #23
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-- removed by user --

Last edited by losthorse; Jul 15, 2014 at 10:24 PM.
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Old May 28, 2014, 04:38 PM   #24
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I, for one, am pretty excited about this.

If you read up on your Apple history, you'd know that Iovine has helped Apple a lot and has had influence in the company since the introduction of iTunes. Plus he's a really big name in the music industry and that will certainly benefit Apple.
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Old May 28, 2014, 04:39 PM   #25
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Nice I hope they bundle beats with iphone.
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