Sunday, September 19, 2021

APPLE’S BEATS ACQUISITION — NOT JUST ABOUT HEADPHONES

May 21, 2014 by · Leave a Comment 

Apple’s acquisition of Beats Electronics for $3.2 billion may have been motivated not so much by a desire to buy the mass-market headphone maker but by a determination to bring owners Jimmy Iovine and Dr. Dre into the Apple fold to run the content side of its business, Billboard magazine is reporting in its May 24 issue. The article, written by Dan Lyons, who famously blogged as “The Fake Steve Jobs” in 2006 and 2007, observed that in 2004, Iovine worked with Jobs to help persuade five top music labels to sign on to the iTunes Store. According to Lyons, Iovine also told Walter Isaacson, Jobs’s biographer, that he tried to persuade Jobs to buy Universal Music in 2002 (the same year that Vivendi Universal disclosed massive losses and began searching for a buyer; it eventually sold off Universal Studios but retained Universal Music Group, currently the world’s largest music company). Lyons writes: “[Isaacson] speculates that [Apple CEO Tim] Cook wants Iovine to … help Apple launch the TV product that analysts have been gossiping about for years. The product has been held up because Apple can’t get all the content owners on board.” Iovine currently serves as chairman of Interscope Geffen A&M records, a unit of Universal Music.