Register FAQ / Rules Forum Spy Search Today's Posts Mark Forums Read
Go Back   MacRumors Forums > News and Article Discussion > News Discussion

Thread Tools Search this Thread Display Modes
Old May 28, 2014, 03:34 PM   #1
macrumors bot
Join Date: Apr 2001
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:
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.
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
MacRumors is offline   4 Reply With Quote
Old May 28, 2014, 03:36 PM   #2
macrumors 65816
Join Date: Aug 2011
Location: USA, it eventually happened! Hope we see some positive/beneficial outcomes out of this.
Macbook Air 11" 2013/i7/8GB RAM/250GB SSD
iPhone 5 32GB Black
nepalisherpa is offline   9 Reply With Quote
Old May 28, 2014, 03:36 PM   #3
Lone Deranger
macrumors 65816
Lone Deranger's Avatar
Join Date: Apr 2006
Obscene amount of money.
Lone Deranger is offline   53 Reply With Quote
Old May 28, 2014, 03:36 PM   #4
macrumors 6502a
SMIDG3T's Avatar
Join Date: Apr 2012
Location: England
Oh no. Not good.
iPhone 5s - 32GB - Gold - iOS 7.1.2

MacBook Pro - Retina display - Late 2013 Model - OS X Mavericks 10.9.4
SMIDG3T is offline   41 Reply With Quote
Old May 28, 2014, 03:36 PM   #5
macrumors 6502
Join Date: May 2005
Location: Amsterdam
Dre made the best deal of his life, Apple one of their worst.
How's the smut business, Jackie?
27" iMac i7 | 13" MBA 3rd Gen 128 SSD | iPad 3 64Gb | iPhone 4 32Gb | iPhone 4s 32Gb | AppleTV 2nd Gen | AppleTV 3rd Gen | iPod Classic 120Gb | iPod Nano 8Gb
JackieTreehorn is offline   84 Reply With Quote
Old May 28, 2014, 03:36 PM   #6
macrumors 65816
AngerDanger's Avatar
Join Date: Dec 2008
Location: location, location!
I think I'd be more excited about them acquiring fresh beets from Schrute Farms.

Nevermind, all is tainted!

Last edited by AngerDanger; May 28, 2014 at 05:02 PM. Reason: bears, beets, a quote you may recall
AngerDanger is online now   62 Reply With Quote
Old May 28, 2014, 03:36 PM   #7
macrumors regular
Join Date: Jul 2012
Location: WNY
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.
Dekema2 is offline   5 Reply With Quote
Old May 28, 2014, 03:36 PM   #8
macrumors Demi-God
fun173's Avatar
Join Date: Mar 2009
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.
fun173 is offline   14 Reply With Quote
Old May 28, 2014, 03:36 PM   #9
macrumors regular
Join Date: Jul 2011
I guess the premature acknowledgement cost them about $200m.
jeremysteele is offline   28 Reply With Quote
Old May 28, 2014, 03:37 PM   #10
macrumors 68000
bbfc's Avatar
Join Date: Oct 2011
Location: Gosforth, England
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.
MacBook Pro (Early 2011), 2.3 GHz Intel Core i5, 4GB RAM, OS X Mavericks, OS X Yosemite DP4 | iPhone 4S 16GB White, iOS 7.1.2
bbfc is offline   13 Reply With Quote
Old May 28, 2014, 03:37 PM   #11
macrumors 68020
Glideslope's Avatar
Join Date: Dec 2007
Location: NY
Time will tell. I wonder is Eddy is nervous about his role? Smile seems forced. : )
" A leader leads by example. Not by force." Sun Tzu
Glideslope is offline   2 Reply With Quote
Old May 28, 2014, 03:37 PM   #12
macrumors 68020
Squilly's Avatar
Join Date: Nov 2012
Location: PA
Coming soon: iBeats. I really wish this was a joke. Wonder if they'll get executive positions at Apple.
iPhone 5s 16gb Space Gray Sprint
Squilly is offline   1 Reply With Quote
Old May 28, 2014, 03:37 PM   #13
macrumors member
Join Date: Jul 2007
“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine.

Yeah, you WOULD say that...
Host of We Have Communicators and creator of Applr
MichaelJohnston is offline   6 Reply With Quote
Old May 28, 2014, 03:37 PM   #14
macrumors 603
chrmjenkins's Avatar
Join Date: Oct 2007
Location: CA
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.
Twitter: @anexanhume
chrmjenkins is offline   19 Reply With Quote
Old May 28, 2014, 03:37 PM   #15
macrumors 65816
Frankied22's Avatar
Join Date: Nov 2010
So it's finally official. Now we get another week of "why?" articles.
iPhone 5S 16GB White 2012 13" MBA i7/8/256
Frankied22 is online now   7 Reply With Quote
Old May 28, 2014, 03:37 PM   #16
macrumors 6502a
KeegM480's Avatar
Join Date: Aug 2013
Location: Orlando
It really is a smart move for Apple, two companies that have high prices and very hyped devices.
 15" MacBook Pro (2.2GHz i7, 16GB RAM, 240 SSD, 500 HDD) | PowerMac G5 (2GHz, 2GB RAM, 460GB) 
iMac G3 (400MHz, 512MB RAM, 40GB) | iPad 2 (Black, 16GB) | iPhone 5S (16GB, Gold)
KeegM480 is offline   14 Reply With Quote
Old May 28, 2014, 03:37 PM   #17
macrumors 6502
Join Date: Jul 2009
Location: Harrogate
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).
Iphone 5s 64GB Silver, Macbook pro 2011 16GB RAM & 1.02TB SSD RAID.
Apple OS X 10.9.3 & Windows 8.1 Virtual Machine

"I miss you Steve"....
cookiesnfooty is offline   3 Reply With Quote
Old May 28, 2014, 03:37 PM   #18
macrumors member
Join Date: Mar 2009
Congrats to Dr.Dre! Owning only 25% wow what a payoff. Great acquisition by Apple !!
Macmoney is offline   4 Reply With Quote
Old May 28, 2014, 03:37 PM   #19
macrumors 603
appleguy123's Avatar
Join Date: Apr 2009
Location: 15 minutes in the future
Ive always known in my heart that Beats belonged with Apple, said Jimmy Iovine.
I just threw up a little.
[Steve Jobs was] brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it. -Barack Obama
appleguy123 is offline   49 Reply With Quote
Old May 28, 2014, 03:37 PM   #20
macrumors P6
MacNut's Avatar
Join Date: Jan 2002
Location: CT
From crap earbuds to crap headphones.
The thoughts in my head are rated TV-MA. Viewer discretion is advised.
Now batting, Number 2 Derek Jeter, Number 2
MacNut is online now   51 Reply With Quote
Old May 28, 2014, 03:37 PM   #21
macrumors regular
Join Date: May 2014
Location: Cape Town
So its finally happening
Yakibomb is online now   1 Reply With Quote
Old May 28, 2014, 03:37 PM   #22
macrumors 6502a
Join Date: Apr 2010
Location: One Infinite Loop, Cupertino CA
That sickens me so much I think I need a doctor.
spyguy10709 is offline   34 Reply With Quote
Old May 28, 2014, 03:38 PM   #23
macrumors member
Join Date: Nov 2012
-- removed by user --

Last edited by losthorse; Jul 15, 2014 at 09:24 PM.
losthorse is offline   37 Reply With Quote
Old May 28, 2014, 03:38 PM   #24
macrumors 6502
Join Date: Nov 2011
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.
chriscrk is offline   40 Reply With Quote
Old May 28, 2014, 03:39 PM   #25
macrumors 6502a
Join Date: Jul 2010
Nice I hope they bundle beats with iphone.
Bathplug is offline   5 Reply With Quote

MacRumors Forums > News and Article Discussion > News Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Beats Co-Founders Dr. Dre and Jimmy Iovine Expected to Take on Senior Roles at Apple Following Acquisition MacRumors News Discussion 890 May 28, 2014 09:31 PM
Jimmy Iovine and Dr. Dre May Make First Official Appearance at Apple's WWDC MacRumors News Discussion 285 May 15, 2014 03:47 PM
Apple's Acquisition of Beats Met with Skepticism, but Jimmy Iovine May Be Key MacRumors News Discussion 271 May 13, 2014 08:18 AM
Beats CEO Jimmy Iovine in Talks to Join Apple as 'Special Adviser' MacRumors News Discussion 147 May 10, 2014 03:04 PM
Beats CEO Jimmy Iovine Recently Met With Apple Executives About His Subscription Music Service MacRumors News Discussion 97 Apr 6, 2013 03:31 PM

Forum Jump

All times are GMT -5. The time now is 05:20 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013,, LLC