Apple Announces $3 Billion Beats Acquisition, Jimmy Iovine and Dr. Dre Joining the Company

Discussion in 'MacRumors.com News Discussion' started by MacRumors, May 28, 2014.

  1. macrumors bot

    MacRumors

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    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."

    [​IMG]
    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:
    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.
    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
     
  2. macrumors 68000

    nepalisherpa

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    #2
    WOW...so, it eventually happened! Hope we see some positive/beneficial outcomes out of this.
     
  3. macrumors 65816

    Lone Deranger

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    #3
    Obscene amount of money.
     
  4. macrumors 68020

    SMIDG3T

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    #4
    Oh no. Not good.
     
  5. macrumors 6502

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    #5
    Dre made the best deal of his life, Apple one of their worst.
     
  6. AngerDanger, May 28, 2014
    Last edited: May 28, 2014

    macrumors 68000

    AngerDanger

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    #6
    I think I'd be more excited about them acquiring fresh beets from Schrute Farms.

    [​IMG]
    Nevermind, all is tainted!
     
  7. macrumors 6502a

    Dekema2

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    #7
    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.
     
  8. macrumors 68030

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    #8
    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.
     
  9. macrumors 6502

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    #9
    I guess the premature acknowledgement cost them about $200m.
     
  10. macrumors 68020

    bbfc

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    #10
    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.
     
  11. macrumors 68040

    Glideslope

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    #11
    Time will tell. I wonder is Eddy is nervous about his role? Smile seems forced. : )
     
  12. macrumors 68020

    Squilly

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    #12
    Coming soon: iBeats. I really wish this was a joke. Wonder if they'll get executive positions at Apple.
     
  13. macrumors member

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    #13
    “I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine.

    Yeah, you WOULD say that...
     
  14. macrumors 603

    chrmjenkins

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    #14
    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.
     
  15. macrumors 65816

    Frankied22

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    #15
    So it's finally official. Now we get another week of "why?" articles.
     
  16. macrumors 6502a

    KeegM480

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    #16
    It really is a smart move for Apple, two companies that have high prices and very hyped devices.
     
  17. macrumors 6502

    cookiesnfooty

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    #17
    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).
     
  18. macrumors member

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    #18
    Congrats to Dr.Dre! Owning only 25% wow what a payoff. Great acquisition by Apple !!
     
  19. macrumors 603

    appleguy123

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    #19
    I just threw up a little.
     
  20. macrumors Core

    MacNut

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    #20
    From crap earbuds to crap headphones.
     
  21. macrumors 6502

    Yakibomb

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    #21
    So its finally happening :D
     
  22. macrumors 6502a

    spyguy10709

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    #22
    That sickens me so much I think I need a doctor.
     
  23. losthorse, May 28, 2014
    Last edited: Jul 15, 2014

    macrumors member

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    -- removed by user --
     
  24. macrumors 6502

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    #24
    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.
     
  25. macrumors 6502a

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    Jul 12, 2010
    #25
    Nice I hope they bundle beats with iphone.
     

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