Iovine and Dre rumored to get senior positions at Apple if Beats deal gets done

Iovine and Dre rumored to get senior positions at Apple if Beats deal gets done
In the aftermath of Thursday's rumor that Apple is going to buy Beats Audio for $3.2 billion, the two music industry legends at the heart of Beats, are said to be in line to receive senior positions at Apple. Jimmy Iovine and Dr. Dre are at the center of a deal that could net both a King's ransom. Despite a video selfie from one of those legends, Dr. Dre, that hinted at a deal being done, nothing official has been announced by either company.

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

source: WSJ

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53 Comments

1. NokiaFTW

Posts: 2072; Member since: Oct 24, 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: 31328; Member since: Feb 05, 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?

5. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Plan to patent troll others

45. stealthd unregistered

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: 584; Member since: Jun 13, 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

Posts: 4562; Member since: Mar 13, 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: 31328; Member since: Feb 05, 2011

Well, they got it to pour down the drain. You sound like the jealous troll you are.

13. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

For what 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: 31328; Member since: Feb 05, 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

Posts: 4562; Member since: Mar 13, 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: 221; Member since: Sep 10, 2013

And Microsoft DOS sucks. Would you like to have an educated conversation or cling to the past?

46. PAPINYC

Posts: 2315; Member since: Jul 30, 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: 31328; Member since: Feb 05, 2011

I see why no one like that post. Pure stupidity, and not the least bit funny.

37. wilsong17 unregistered

Is all about the popularity

41. mmmanuuu

Posts: 403; Member since: Nov 05, 2013

In other news SAMSUNG calls for a quick urgent meeting and is thinking of buying SEINHEISSER or SKULLCANDY !!!!

50. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

Post of the day right here :)

51. TheGenius

Posts: 339; Member since: Mar 06, 2014

At least seinheisser and skullcandy give decent audio quality.! So yeah samsung will outskill apple once again in its own game. SamsungFTW.!

3. bugsbunny00

Posts: 2266; Member since: Jun 07, 2013

yeah a beats audio edition iphone.

6. ihavenoname

Posts: 1693; Member since: Aug 18, 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: 1280; Member since: Feb 27, 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: 1168; Member since: May 23, 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: 3806; Member since: Apr 16, 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: 584; Member since: Jun 13, 2008

Interesting. So what are you basing your epic fail claim on?

14. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

I take it you know nothing of the fraud that is "Beats"?

18. Napalm_3nema

Posts: 2236; Member since: Jun 14, 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: 3806; Member since: Apr 16, 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: 2236; Member since: Jun 14, 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: 3806; Member since: Apr 16, 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: 584; Member since: Jun 13, 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: 3806; Member since: Apr 16, 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.

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