$3 Billion Apple-Beats Deal Goes Through, Iovine Key To Bringing Back The Funk - HotHardware
$3 Billion Apple-Beats Deal Goes Through, Iovine Key To Bringing Back The Funk

$3 Billion Apple-Beats Deal Goes Through, Iovine Key To Bringing Back The Funk

First things first: Apple’s Beats acquisition is happening, and Apple has confirmed it. The deal is for $2.6 billion in cash and $400 million in stocks, and--perhaps more notably--it will bring Beats co-founders Jimmy Iovine and Dr. Dre to Apple.

And that last bit, it seems, was and is the key to the whole thing. Apple doesn’t need a $3 billion headphone business; it needs to figure out how to win the music market, which has experienced a revolution in recent years.

For a moment, just after Napster blew apart the old model of buying and selling physical CDs at record stores and just before streaming services became the way many people listen to music, iTunes was king. The ability to download any song you wanted for a buck was a phenomenal innovation.

Jimmy Iovine - Beats Music
Jimmy Iovine (Credit: Reuters/Lucy Nicholson)

Now, of course, the music landscape is different once again, and it’s wide open for whoever figures it out first. Apple has enough sense to know that it’s behind, as the Pandoras and Spotifys are attracting millions of users at the expense of iTunes. There are a lot of streaming services, actually, and Beats was running one of them.

According to Reuters, Beats pulled in some 250,000 users in just a few months of business. That’s not mind-blowing, but it’s not nothing, either. Further, there’s something to be said for Beats having that je ne sai quoi courtesy of Iovine and Dre; not only is there star power, Iovine is a large figure in the music business, and Apple is betting that he’ll help guide them and their shiny new headphone unit--er, streaming service--into the future.

Reuters said that the Beats headphone group will be under Phil Schiller while the streaming service will be under Senior Vice President of Internet Software and Services Eddy Cue.
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In my mind, Iovine clearly was a major part of the attraction with the Beats acquisition. You will see him move into a pivotal role at Apple for the iTunes and wearables groups.

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2 of the things I say where over rated the most. I have a pair of skull candy SLYR's that will destroy ANY beats heatset. Even the $399 pair, put them to shame.

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Worst purchase ever. One of the worst over priced audio companies out there. I hope Apple chokes on their Beats purchase and spits them out with a bad taste in its mouth.

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bad idea. I like my play list. Reason why I was an early adopter with the first iPod. I don't like the crap on the radio I'm not the person that wants or needs to know the next song... I can make my own play list. thank you. Fail acquisition.

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I think that it will work for them at first. But Apple is pretty greedy. They'll jerk Beats around until everyone jumps ship again, like they did with iTunes.

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