Iovine and Dre rumored to get senior positions at Apple if Beats deal gets done
Iovine is expected to leave his current job as chairman of Interscope Geffen A&M records, a division of Vivendi SA's Universal Music Group. Universal, which owns 14% of Beats, would reap about $500 million in the transaction. With his connections to superstars including U2, Iovine might be able to help Apple sign deals with popular talent. One report stated that Iovine was in line to become a special adviser to Apple CEO Tim Cook, although Dre's role in the tech firm was not discussed.
Both Dre and Iovine have been through this before, In 2011, they sold a 50.1% stake in Beats Audio to Taiwan based HTC for $300 million. Despite the company's growth, they bought back the stake two years later for $150 million. HTC had branded some of its high-end handsets with the Beats Audio logo and had included special software and technology on its phones. The manufacturer also included a pair of premium HTC earphones with certain models, only to end the practice when it became too expensive.
1. NokiaFTW (Posts: 2057; Member since: 24 Oct 2012)
Why is Apple wasting 3 billion on an overrated and useless product? They'd be better off using that money to innovate more with their products. Anyways, it'll have to be the buyers who'll have to help Apple cover up that cost now by paying 1000$ and more for an iPhone.
2. darkkjedii (Posts: 12406; Member since: 05 Feb 2011)
So you don't think Apple knows what they're doing? If they're willing to make this kinda purchase, wouldn't you think they have major plans for it?
45. stealthd (Posts: 975; Member since: 12 Jun 2011)
What patents? What patents do you think a company that made it's money by investing in advertising and relying on Dre's popularity is going to have?
10. greathero1 (Posts: 493; Member since: 13 Jun 2008)
Im actually interested to see where this is actually going. I have owned an HTC phone with Beats Audio and it was one of my favorite features.
4. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)
At least 3 billion is gone down the drain
3 billion less from its offshore a count
Their both overrated hyped bla bla bla company
8. darkkjedii (Posts: 12406; Member since: 05 Feb 2011)
Well, they got it to pour down the drain. You sound like the jealous troll you are.
13. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)
A troll really Phonearena users in here knows you was once a big time troll years ago
Jealous for what. I'm happy that they drained revenue down the no where
16. darkkjedii (Posts: 12406; Member since: 05 Feb 2011)
I really don't give a d**n what they know! now see post 8. All you do is log on, and head straight to apples articles to nag, and bother people. You do this crap day in, and day out. Plain and simply put, you are a internet troll. No other way to say it.
43. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)
So Apple is God
They don't litigate
Thy are innocent
Apple fan will never admit their company trolls with patents
36. Jommick (Posts: 211; Member since: 10 Sep 2013)
And Microsoft DOS sucks. Would you like to have an educated conversation or cling to the past?
46. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)
Look at it this way: 3 billion is just the beginning. After Apple takes over Beats it will sŪk even more and then they will change the name to iBeats; then they will consolidate iBeats with iTunes and call the new service iBunes; they will then change the headphones branding to Beats Air; the brand will then go bust and Apple will lose 6 billion by the second year. In total, it will cost Apple about 9 billion by the time they admit to failure. At which point in time the new Beats Air models will begin to break and Apple will recommend people use duct tape to repair them. In the end Apple will go bankrupt and iTunes with iBeats aka iBunes will eXplode into cosmic dust particles. This is actually a win-win for non-Apple intellectually superior Android users.
53. darkkjedii (Posts: 12406; Member since: 05 Feb 2011)
I see why no one like that post. Pure stupidity, and not the least bit funny.
41. mmmanuuu (Posts: 237; Member since: 05 Nov 2013)
In other news SAMSUNG calls for a quick urgent meeting and is thinking of buying SEINHEISSER or SKULLCANDY !!!!
51. TheGenius (Posts: 339; Member since: 06 Mar 2014)
At least seinheisser and skullcandy give decent audio quality.!
So yeah samsung will outskill apple once again in its own game.
6. ihavenoname (Posts: 1506; Member since: 18 Aug 2013)
Yeah, hopely no. I seriously doubt that Apple spent that kind of money to have red Beats logo on the back and slightly modified equalizer.
7. techperson211 (Posts: 709; Member since: 27 Feb 2014)
They will patent it and say' s that other company violated copyright of beats. Sol republic is way more reliable than this over priced ear/head phones.
9. DnB925Art (Posts: 387; Member since: 23 May 2013)
I love my SOL Republic headphones, esp my Master Tracks XC (the Calvin Harris edition).Paid $135 out the door at Target when they were on clearance last month.
11. 0xFFFF (Posts: 3632; Member since: 16 Apr 2014)
When Apple decides to make a mistake, they don't mess around. Spending $3.2B to buy thousands of garbage trucks full of bad product and a few record industry executives. It doesn't get anymore insanely stupid than this.
This "Beats" acquisition seems like the most epic fail of 2014, surpassing even HTC's 4MP camera fail which just about sunk HTC.
12. greathero1 (Posts: 493; Member since: 13 Jun 2008)
Interesting. So what are you basing your epic fail claim on?
14. 0xFFFF (Posts: 3632; Member since: 16 Apr 2014)
I take it you know nothing of the fraud that is "Beats"?
18. Napalm_3nema (Posts: 1262; Member since: 14 Jun 2013)
I take it you know nothing of business. The Beats brand is well known, worldwide. Sales keep growing at a ridiculous pace. Apple already sells Beats in Apple stores. What you or I think about the quality, or lack thereof, is of no consequence. Lots of people seem to like them, and they continue to fly off shelves.
Apple will make their money back on the deal rather quickly at the rate Beats revenue has grown, and this doesn't look like the $7 billion loss that Motorola was or the ridiculous loss that Skype has turned out to be for Microsoft.
20. 0xFFFF (Posts: 3632; Member since: 16 Apr 2014)
The grocery store sells peanut butter and jelly and even though they are made with bad ingredients, they sell really well. Should the grocery store spend $3.2B and buy the maker of the peanut butter and jelly?
Now let's consider the scenario where the grocery store's market share is declining year over year and will be somewhere around 5-10% in the next decade. In this context, does it make sense for the grocery store to spend $3.2B to own their own peanut butter and jelly?
22. Napalm_3nema (Posts: 1262; Member since: 14 Jun 2013)
Nice hypothetical, but it doesn't apply because marketshare != profit, which is what drives successful businesses. Apple is profitable, and still growing, and Beats is profitable, and still growing, and somebody at the world's richest and most successful technology company must have thought it was a good idea.
27. 0xFFFF (Posts: 3632; Member since: 16 Apr 2014)
We will just have to see what happens. Keep in mind the number of failed acquisitions, especially by tech companies, far outnumbers the number of successful acquisitions.
In the past, Apple has focused on quality. Buying "Beats" is a huge break from this core value of Apple. It may end up poisoning Apple's corporate culture.
26. greathero1 (Posts: 493; Member since: 13 Jun 2008)
This is not a good analogy at all. Secondly, while market share for iOS is declining, they are stilling selling more iPhones. Could it be that the market itself is just growing a lot faster with new and multiple entrants? The epic fail was in your comment bro.
28. 0xFFFF (Posts: 3632; Member since: 16 Apr 2014)
The market is growing. But Apple is not growing with the market, otherwise their market share would not be falling.
We will see what happens after a decade of quarter after quarter of declining market share. Apple will still be around and financially healthy, I am sure. But as relevant as they are today? I doubt it.
47. stealthd (Posts: 975; Member since: 12 Jun 2011)
Actually they are growing with the market, the market is just growing faster. Their sales aren't declining.
17. darkkjedii (Posts: 12406; Member since: 05 Feb 2011)
Yawwwwwwwwwnnnnn. Typical hater comment.
35. DaMaster (Posts: 33; Member since: 28 Apr 2014)
Apple apparently is not in touch , they think that this product is popular in none urban areas , but they are probably smart enough to realize that they are buying the name. Good for Dr.Dre though his going to be the most wealthy rapper around.
19. esperanza (Posts: 46; Member since: 23 Mar 2013)
Sound quality of Beats Audio products...equals to bitch audio to me.
21. darkkjedii (Posts: 12406; Member since: 05 Feb 2011)
You're saying that cuz apple bought it. If google bought, it's be awesome
24. Napalm_3nema (Posts: 1262; Member since: 14 Jun 2013)
I'm ambivalent about the purchase (Except I think it is pretty cool that one of the first rappers I ever listened to in the early 90s is getting his), but I do think Apple knows what they are doing. However, I'm not sold on Beats Audio sound quality. Give me V-Moda or Sennheiser in that same range, or Grado at the higher end.
32. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)
Even the sampling rate and kHz is not good on Beats
30. esperanza (Posts: 46; Member since: 23 Mar 2013)
The REAL reason Apple bought Beats
31. 0xFFFF (Posts: 3632; Member since: 16 Apr 2014)
LOL. TC is the baddest studio gangsta of them all.
23. jp81323 (Posts: 2; Member since: 01 Aug 2011)
The reason apple is interested in buying beats has nothing to do with the products... It's the streaming services... Now do research before you comment...
25. Napalm_3nema (Posts: 1262; Member since: 14 Jun 2013)
You're right. I think it is both, but the streaming aspect cannot be overlooked.
29. 0xFFFF (Posts: 3632; Member since: 16 Apr 2014)
If this were the case, they would buy Spotify or Rdio or just buy a few executives from the recording industry and get some deals done. $3.2B for the Beats streaming service is a massive rip-off.
48. stealthd (Posts: 975; Member since: 12 Jun 2011)
Maybe those companies aren't willing to sell. I know Spotify isn't. Rdio has pretty much zero brand recognition. Beats was definitely a more valuable aquisition.
33. xeonfire (Posts: 78; Member since: 15 Feb 2014)
All these current billion dollars aqcusitons....facebook buying whatapps for its millions of users, microsoft swallow nokia for its hardware prowess, apple eats beats for its gaint hair accessories...google bought nest lab so they can takeover all your home appliances...
34. papss (unregistered)
I have never owned any beats headphones or ear buds,I prefer my Bose black and white ear buds.ive also never tried beats streaming service, I use Xbox music and tried google music (which was terrible). I'm not sure about the ear buds that came with HTC phones before but the black and red ones that come with the m8 sound alright and look nice they are not of good quality. I love me some dr are so good for him. I'm sure apple knows what they are doing.
40. NokiaFTW (Posts: 2057; Member since: 24 Oct 2012)
Since Xbox Music isn't available here in India, and Nokia MixRadio has a ridiculously low subscription fee along with a great collection of local Hindi music, I prefer using it. I hope MS brings Xbox Music to India soon.
38. jellmoo (Posts: 700; Member since: 31 Oct 2011)
I think that Apple overpaid by a large amount, but they have money to do so. Other than that it's a great brand pairing that could see Apple really muscle into the headphone game, and use that to leverage growth in other places.
While I'm not a Beats lover by any means (I like simple Sony headphones), it's a great move by Apple to extend and work with what's one of the biggest brands around.
39. corporateJP (Posts: 1763; Member since: 28 Nov 2009)
Apple getting Dre...trying to be gangsta.
42. SAIDH0 (Posts: 10; Member since: 08 May 2014)
First signing with Nokia's camera guru and now they're buying beats sounds .. Apple is cooking something really HOT!!
49. tigermcm (Posts: 745; Member since: 02 Sep 2009)
meh is was already the plan from the get go anyways. Iovine's plan was to provide better headphones for iPods than what Apple was providing soooooo Apple waited 8yrs for them to make bank so they can close the deal
52. techloverNYC (Posts: 422; Member since: 20 Nov 2012)
The biggest loser over here seems like HTC. Bought it for $300 mill and sold it back for a mere $150 mill. Beats then turn to apple and sell it for $3.2 billion. This is some smart business.