Finishing touches on the deal between Apple and Beats Electronics
Apple is in the closing stage of acquiring Beats Electronics, the well-known headphone manufacturing company which also offers a music streaming service. Few hours back, we wrote about a possible acquisition between Apple and Beats and we have thronging updates and speculations ready about the entire deal.
There were doubts about the deal materializing or not, which apparently Jimmy Iovine hinted on as being favorable in a video.
Iovine has strong connections in the music industry which Apple will be able to leverage on once the deal is officially sealed. Iovine is a known face to Apple, he had met Steve Jobs to talk through a subscription based music service earlier which didn’t get lucky.
“The idea of Beats…to be very frank, I got from Apple,” he said, noting the “uniqueness of their blending of technology with popular culture.”
Iovine is also expected to join as a special adviser to Apple on creative matters. Clearly, he will fetch Apple with his long-lasting experience of the music industry, sources also say that he would help Apple in raising up the revenue from advertising through iTunes Radio.
There are thoughts and assertions on a negative side too, hinting that the billion dollar deal is not justifiable.
We are struggling to see the rationale behind this move. Beats would of course bring a world class brand in music to Apple, but Apple already has a world class brand and has never acquired a brand for a brand’s sake (i.e., there are no non-Apple sub-brands under the company umbrella). Separately, we are not aware of any intellectual property within Beats that would drive the acquisition justification beyond the brand.
According to the original Financial Times news reported earlier this morning, negotiations are still on between Apple and Beats and there’s still a possibility of not meeting at a common point.
There’s a blanket of apprehension and excitement going around, what is Apple actually planning on the whole, changing dynamics are witnessed by the press and the general public everyday. But somethings don’t change and, that is the fact that Apple continues to create anxiety among its followers.