Perhaps not so coincidentally, iTunes boss Eddy Cue and Beats co-founder Jimmy Iovine were both scheduled to speak Wednesday at the inaugural Code Conference, appearances that were hastily consolidated after yesterday's news.
We reported this morning that it looked as though Apple was going ahead with its hotly discussed acquisition of Beats Electronics, and now it's official. As of today, Apple is buying Beats Electronics and its associated Beats Music steaming service for $3 billion (a bit down from the $3.2 billion originally suggested).
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.
The news over the last few days has been swirling with speculation about Apple's possible acquisition of Beats Electronics, and most commentators assume that the Cupertino company wants to buy it for its pre-built music streaming service that's similar to Spotify. But Steve Jobs biographer Walter Isaacson believes that's not the case. Instead, he states in an interview with Billboard, Apple primarily wants to secure Beats for the industry connections of co-founder Jimmy Iovine.
Does a drunken video posted to Facebook count as confirmation that Apple is purchasing Beats Electronics? According to CNET, it could very well, with Beats co-founder Dr. Dre proclaiming himself to be the "first billionaire in hip-hop" in a obscenity-laced video clip. "The Forbes list just changed, in a big way," added singer-songwriter Tyrese Gibson. And that's just the first part of today's Apple-Beats related coverage...
Not content to simply manufacture overpriced headphones, Beats co-founders Jimmy Iovine and Dr. Dre are jumping into the subscription-based streaming music pond next week with their own (pardon the expression) spin on the industry.