Sport & Auto
- About Future
- Digital Future
- Cookies Policy
- Terms & Conditions
- Investor Relations
- Contact Future
The $3.2 billion deal between Apple and Beats Electronics continues to make headlines, with more details seeming to confirm our previous report that the arrangment is less about overpriced headphones or streaming music services than the tastemakers running the company.
TechCrunch added its own confirmation to the Apple-Beats deal on Thursday, with a "well-placed source" claiming the acquisition "is happening," despite coming close to falling apart a number of times.
The same source called the reportedly $3.2 billion deal a "70 percent certainty," but it's not the Beats-branded products or services that Cupertino appears to be interested in.
“They want Jimmy and they want Dre,” the unnamed source revealed. “He’s got fashion and culture completely locked up.”
Judging from Apple's other recent hires — most recently with former Burberry CEO Angela Ahrendts as head of the company's retail efforts — the source probably isn't that far off, especially with what Beats co-founders Jimmy Iovine and Andre Young (aka Dr. Dre) have managed to do since founding their company in 2008.
"Iovine is known as a pit bull in the realm of media negotiations and this move will give Apple youth cachet thanks to the brand and business chops with the Iovine/Dre mix," the report elaborated. "Iovine will be most valuable in negotiations with record labels in iTunes acquisitions."
Apple's acquisition could also be about blocking a rival from getting their hands on Beats, with Korean manufacturer Samsung reportedly having made a bid for the company earlier this year, although that effort apparently went nowhere.
Follow this article’s author, J.R. Bookwalter on Twitter