Saturday, September 22, 2018

APPLE PLACES $3-BILLION BET ON BEATS

May 29, 2014 by · Leave a Comment 

And the Beats go on — onto Apple, that is. The Cupertino, CA computer giant confirmed on Wednesday that it has agreed to acquire headphone maker Beats Electronics and its digital music unit Beats Music for $3 billion and that founders Jimmy Iovine and Dr. Dre will join Apple in an unspecified senior capacity. Earlier reports had indicated that the two would oversee content for Apple. The deal marks the biggest acquisition Apple has made in its history. “I’ve always known in my heart that Beats belonged with Apple,” Iovine said in a statement. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology.” Several reports had already indicated that it wasn’t the earphones that interested Apple so much as the two Beats founders, Iovine and Dre. Indeed, in an interview with the New York Times, Apple chief Tim Cook remarked, “We looked at the combination with Beats, and what we saw is a company that has incredible, rare talent.” In reporting the deal, the Times commented, “Apple is betting that Mr. Iovine’s four decades in the trenches of the recording industry, his knack for trend-spotting and his credibility with artists will help the company rejuvenate its music business nearly three years after the death of its co-founder, Steven P. Jobs.”