The period of digital downloads is coming to a slow end and Apple is still without its own streaming music product. Therefore signing the $3.2 billion deal that will seal their ownership of Beats by Dr. Dre seems plausible.
The deal is said to include both Beats’ music subscription service and its hardware business, which sells Beats by Dr. Dre headphones and portable speakers. The deal hasn’t been finalized, but could be announced as soon as next week.The Billion Dollar question that many tech observers had been itching to know is, why would Apple want to buy Beats Electronics? Since the Financial Times (FT) reported on Thursday 8 May, the $3.2 billion acquisition of the “high quality” headphones maker founded by music producer Jimmy Iovine and hip-hop artist Dr. Dre, was closing in, major buzz began. The FT suggests that Apple is interested in Beats in order to revive their “cool” factor in a time when streaming music services like Spotify, Pandora and Rdio have been increasingly popular with the youth.
In the past, Apple has not hunted high-profile acquisitions. The Beats deal will set a part Apple CEO Tim Cook from his predecessor, the late Steve Jobs. Cook said in April that Apple was “on the prowl” for more acquisitions. Thus making the Beats deal their biggest acquisition yet. Dre appeared to confirm the purchase last Friday, stating in a video that he had just become the “first billionaire in hip-hop”. However the deal has yet to be officially confirmed by both camps Beats and Apple.
In addition to the potential new partnership between Apple and Beats, Apple could possibly reveal Jimmy Iovine and Dr. Dre as its latest recruits as Apple’s executives, at their Worldwide Developers Conference in June.
Hopefully all goes well, as this partnership between Beats and Apple sounds like a match made in heaven. A potential for some great music and musical experience all wrapped in headphones. All in all in the words of legendary Hip Hop artist Biggie, “You never thought that Hip-Hop would take it this far.”