Apple’s acquisition of Beats Electronics may be an acqui-hire for the fashion and cultural chutzpah of Jimmy Iovine and Dr. Dre and not a technology-oriented purchase as previously rumored, reports TechCrunch, which cites a “well-placed” source for this inside information.
According to the source, Apple’s deal with Beats Electronics has come close to falling apart several times, but now is likely to happen, with a 70 percent chance that it will go through. In opposition to earlier reports that claimed the acquisition was about Beats’ headphones and music streaming service, this latest report claims Apple wants Beats solely for Iovine and Dre.
“They want Jimmy and they want Dre,” said the source. “He’s got fashion and culture completely locked up.”
Iovine and Dre would bring wealth of music industry experience and influence that Apple currently lacks. Apple likely would use Iovine’s reputation in the music business to negotiate content deals for iTunes and future streaming music endeavors, while Dre would serve as a cultural icon to attract younger consumers to the Apple brand.
Both Iovine and Dre are rumored to take on senior roles at Apple following the acquisition of Beats Electronics. The pair may continue to work out of Beats’ Los Angeles headquarters with the occasional trip to Cupertino for crucial meetings. Apple is expected to announce its acquisition of Beats Electronics for $3.2 billion in a deal that could be announced very soon.