Apple finally closed the deal with Beats Electronics for $3billion. The company is acquiring a music-streaming service, high-end headphone and music-industry connections. Aside from obtaining Beats, Dr. Dre and Jimmy Iovine are also joining the company.
Dr. Dre whose real name is Andre Young said that he will continue producing music but he will do as much as it takes for Apple Company also. While Mr. Lovine is about to live his position as chairman of Vivendi’s Interscope Records.
On Wednesday, the tech giant said that its purchasing Beats Electronic LLC to reinforce its music business that lost some of its mojo and streaming-music services intruded on the downloads controlled by Apple’s iTunes service.
By combining Mr. Lovine’s heart for “the culture of young people” with Apple’s love for “many millions of young people’s credit cards,” Apple will become cool again, said Dough Morris who is Sony’s Music Entertainment Chief Executive and the former chief executive of Universal Music. “Apple was starting to lose their edge,” Mr. Morris said.
Mr. Iovine was an old friend of Steve Jobs who was the Apple founder. His career includes music production, working with Bruce Springsteen, U2, Patti Smith, etc. His career as an executive is described as all know-how and imaginative approach to marketing. But after long years of piracy going online, music sales began to decline and Mr. Iovine started pushing its executives at Interscope to approach their roles more widely. They tapped brand managers who know how to market not just recordings but also clothing, electronics and even beverages.
So far, the acquisition is the largest in the company’s history and it surpassed Apple’s $400 million purchase of NeXT Software Inc. in 1997. That deal brought back Mr. Jobs to the company, laying the fundamentals for its recovery.
Everyone is excited for the new combo inside the Apple’s company.