Jimmy Iovine - page 3

Three weeks of speculation and rumors have led to this. Apple is finally buying Beats for $3 billion.

News of the deal broke weeks ago but the tech world is still scratching its head, wondering why Apple decided to buy a company that peddles overpriced plastic headphones and is co-anchored by one of hip-hop’s most notorious MCs.

Forgetting the fact the fact that Beats has captured 60% of its market, makes over $1 billion in sales and has one of the fastest growing music subscription service in the U.S., the acquisition is the most perplexing Apple purchase since NeXT, but now that Tim Cook has broken the silence on why Apple bought Beats we finally answers you wanted to know but were afraid to ask.

Apple’s acquisition of Beats is official, and it’s clear that the move is more about the talent Apple is getting than anything else.

After the buyout was announced this afternoon, Apple CEO Tim Cook explained the reasoning behind the company’s decision. “What Beats brings to Apple are guys with very rare skills,” he said in an interview with Re/code. “People like this aren’t born every day. They’re very rare. They really get music deeply. So we get infusion in Apple of some great talent.”

So it’s obvious that Apple thinks very highly of the people at Beats. But who exactly are they getting as part of the deal?

After Beats co-founder Dr. Dre made an exuberant video post on Vine boasting about becoming the first rap billionaire, many worried that Apple’s deal with the audio and streaming music service — once rumored to be worth as much as $3.2 billion — was scuttled. But a new report suggests it’s still on track for being announced this week, although Dre’s boastfulness may have cost him two hundred million dollars.

We get slammed 24/7 with new Apple rumors. Some are accurate, most are not. To give you a clue about what’s really coming out of Cupertino in the future, we’re busting out our rumor debunker each week to blow up the nonsense.

Conventional wisdom is that while Beats has a lot of fashion credibility, the actual audio quality blows. So why does Apple want to buy them?

Rumors have swirled that it’s an acqui-hire, and that Apple wants Beats so that it can also own Beats executive Jimmy Iovine and Dr. Dre, whose contacts in the music industry are unparalleled.

But there could be another reason, too. Apple might want to prevent Samsung from purchasing Beats.

The web has spun about 13,000 different theories on why Apple bought Beats. Did they want the headphones? Or was it Beats Music that tipped things over?

It’ll be months, if not years, before we learn Apple’s real play with the Beats acquisition, but Steve Jobs’ biographer Walter Isaacson has his own theory on why Apple bought Beats and it has nothing to do with music, overpriced headphones, or other wearables.

It’s all about video.

Beats Electronics’ co-founders are preparing to dive headfirst into a pool of cool Apple cash but before Jimmy Iovine and Dr. Dre collect their check from Cupertino, a former employee is already preparing to sue Beats for upwards of $20 million.

David Hyman, co-founder of the music subscription service MOG, has filed a lawsuit against Beats claiming he was hired and then deliberately fired before he could cash in on the equity grant he was promised.

Dr. Dre has been busy celebrating the Beats acquisition with fountains of Hennessy but the world’s favorite hip-hop producer isn’t the only musician who stands to make a fortune off Apple’s big purchase.

Enter William Adams. You probably know him by his stage name, Will.i.am of the Black Eyed Peas. He’s been pimping the Beats brand since day one and for his loyalty he’s been blessed with founding shares in the company that stand to make him more money than he ever saw from his Grammy-winning song, “I Gotta Feeling.”

Apple’s much-discussed acquisition of Beats Electronics might not be finalised until next week, according to “people familiar with the transaction.”

Apple’s biggest acquisition ever is all the tech world can talk about, and Apple hasn’t even confirmed the news yet.

Last week it was reported that Apple has plans to acquire Beats Electronics for $3.2 billion. Shortly after the news broke, Beats co-founder and legendary producer Dr. Dre called himself the “first billionaire in hip-hop.”

Now Dre and music industry tycoon Jimmy Iovine are rumored to appear onstage at Apple’s Worldwide Developers Conference next month. What exactly the future holds for Apple and Beats remains unclear, but here are five things to know about the monumental deal:

If you’ve read Walter Isaacson’s Steve Jobs biography, you possibly know the name Ronald Wayne. That’s the investor who dropped out of Apple 12 days into its existence as a company — losing around $35 billion after selling his shares for just $800.

In the wake of a reported deal with Beats, we have a repeat of that story — courtesy of the one key party that won’t see a scratch from the rumored $3.2 billion acquisition.

Although Iovine and Dre get all the credit for Beats, it was Monster CEOs Noel and Kevin Lee who designed and developed the world’s very first pair of Beats headphones, and did the engineering and technology distribution for the company’s first five years.

Both Jimmy Iovine and Dr. Dre will take senior positions at Apple as part of the Beats Electronics deal, according to people close to the matter.

While neither would move to Cupertino, they would reportedly commute to Silicon Valley (or wherever is needed) from Los Angeles. Although it’s currently unknown what role Iovine and Dre would fulfill at Apple, it is thought that Iovine might become a “special adviser” to Tim Cook on creative projects. Dre was recently seen celebrating becoming “the first billionaire in hip-hop.”

So who are these two possible new members of the Apple brain trust, and what would they bring to the table?

If the rumors are true, Apple’s forthcoming purchase of Beats Electronics for $3.2 billion is all about one thing — making wearable technology fashionable.

Apple is poised to introduce a line of wearables that likely goes beyond the long-rumored iWatch. While the technology Tim Cook’s team is cooking up might be amazing, getting people to wear it — especially cracking the crucial mass market — will be one of the biggest challenges Cupertino has ever faced.

Injecting style into wearable tech notoriously difficult. Even Nike got flustered and discontinued its FuelBand fitness tracker. So far, no company has really cracked the code and turned gear into a fashion statement for the cool kids, with one giant exception: Beats, a phenomenally successful wearable technology brand that dwarfs the rest of the industry because it’s pulled off the hardest trick in the book.

Beats Electronics boss and music industry veteran Jimmy Iovine is in talks to join Apple as a “special adviser” to Tim Cook on creative matters, according to sources.

Along with his role as co-creator of Beats with business partner Dr. Dre, Iovine is also chairman of Universal Music Group’s Interscope, Geffen and A&M labels, which is home to artists including Lady Gaga and Eminem.

Between iTunes Radio, Pandora, Spotify, and Rdio, do you feel as if you don’t have enough options for streaming music? Well, good news: Beats Music — the new streaming service previously known as “Project Daisy” by the most overrated headphone manufacturer out there — will reportedly launch on January 21st.

Spotify has acquired Swedish music discovery startup Tunigo in an effort to compete with Twitter’s new music service, AllThingsD reports. Tunigo will continue to operate as normal for the time being, but all of the company’s employees will reportedly move into Spotify’s offices in Stockholm and New York to work on Spotify’s main music streaming service.

For the past several months it’s been rumored that Apple is working on an iTunes music subscription service to compete with the likes of Spotify and Rdio. Google is reportedly also looking into some sort of music streaming service involving YouTube.

According to a new report, Apple executives recently met with a high-profile music industry executive to discuss business economics and the mysterious “Project Daisy.”