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Apple's Acquisition of Beats Could Be Delayed Because of Valuation, Roles, and More

Last week, reports indicated that Apple's acquisition of Beats would not be finalized until this week. With the week ending and no deal having been announced, a new Billboard report offers insight into what could be holding up the deal.

beatsdreBillboard's sources indicate the deal "is complicated", as it would be Apple's largest acquisition. In addition, the news apparently leaked "too early", with Apple nowhere near ready for news to break despite publications like Re/code and The Financial Times reporting that the deal is close to completion.

A video that was uploaded to YouTube of actor/musician Tyrese alongside Beats co-founder Dr. Dre is another possible reason for the delay, with Dre claiming that he was the first billionaire in hip hop after the deal. The video apparently "freaked Apple out" and had the Cupertino company outraged.
Apparently, the Apple family near imploded with outrage when that video went up on Facebook of an ‘excited’ Dr. Dre with R&B singer/former Coca Cola pin-up Tyrese. In the video they share, in language perhaps unsuitable for a family blog, how Dre will be hip-hop’s first billionaire and other nice things about Compton.
Fourth, Apple allegedly isn't sure whether to give Beats co-founders Jimmy Iovine and Dr. Dre roles as permanent consultants or whether to give them full-time executive roles. Apple is also apparently unsure whether the two of them would fit into the company's corporate climate, despite reports that Iovine and Dre are the "big prizes" of the acquisition.

Finally, another rumored sticking point is Apple's valuation of Beats Music, which has around 200,000 subscribers and has been speculated as one of the main reasons behind the acquisition. Apple is apparently planning to keep Beats Music separate entity from iTunes in order to avoid cannibalization of iTunes music sales.

Apple pundit John Gruber of Daring Fireball offered another scenario, discrediting the Billboard report and speculating that Beats may have leaked to the deal, angering Apple and scuttling the acquisition before it could be completed.

Top Rated Comments

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18 weeks ago
I can only hope that it's delayed indefinitely.
Rating: 109 Votes
18 weeks ago
That is all I have to say :cool:

Rating: 97 Votes
18 weeks ago
I didn't think that video Dre made would help the negotiations. It came off very smug and I'm sure Tim Cook didn't like it one bit.
Rating: 53 Votes
18 weeks ago
I hope they just don't buy them.
Rating: 49 Votes
18 weeks ago
I've read so many articles giving reasons why they are buying beats. It still doesn't make any sense to me.

Hopefully Apple's official statement/WWDC will give real insight, once the deal is finalized (but hopefully not).
Rating: 44 Votes
18 weeks ago

Read a fair bit about this potential acquisition but that was the first time I'd seen the Dre video.

If the deal wasn't sealed prior to him doing the YouTube video I think he's just shot him self in the foot with an AK.

Until the check is in the bank it's not your money - I thought he'd be a bit more business savvy than that, obviously not.

Apple does need to 'acquire' Jimmy Iovine. He is where it's at when it comes to taking the pragmatic approach to the way the music industry has been and is heading. Not to mention he has the cred in the industry and the smarts to make the negotiations.

I could see Iovine on the executive team as "iTunes Manager" or something along those lines.

Dre, I can't see being part of the Apple executive/corporate environment.

saggsy


Can't take the hood out of a thug.

I hope Apple nixes the deal and then Dre gets his @$$ handed to him by the BEATS board and management.

Apple should just hire Iovine and just forget the rest of BEATS.
Rating: 38 Votes
18 weeks ago
Leave now while you still have the chance!!! It's way over priced
Rating: 35 Votes
18 weeks ago
Read a fair bit about this potential acquisition but that was the first time I'd seen the Dre video.

If the deal wasn't sealed prior to him doing the YouTube video I think he's just shot him self in the foot with an AK.

Until the check is in the bank it's not your money - I thought he'd be a bit more business savvy than that, obviously not.

Apple does need to 'acquire' Jimmy Iovine. He is where it's at when it comes to taking the pragmatic approach to the way the music industry has been and is heading. Not to mention he has the cred in the industry and the smarts to make the negotiations.

I could see Iovine on the executive team as "iTunes Manager" or something along those lines.

Dre, I can't see being part of the Apple executive/corporate environment.

saggsy
Rating: 35 Votes
18 weeks ago
You know I hate to be that guy, and I never thought I would be, but I'm going to invoke Steve Jobs, here. We all know that Steve Jobs would have immediately canceled any in-progress deals if the other party leaked it. It happened a bunch of times, as I recall, over a bunch of deals and with companies a lot bigger than Beats.

Obviously this is a new Apple under Tim Cook, and Tim Cook isn't going to just do what Steve Jobs would have done, but in this case, I wouldn't be surprised if they both would do the same thing. Tim Cook made it clear he cares about secrecy.
Rating: 31 Votes
18 weeks ago
Apple should just buy spotify. The beats headphones are crap and dr. Dre is ridiculous and unprofessional.
Rating: 25 Votes

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