A couple of days ago, Dr. Drenad sent out a tweet indicating the acquisition of his company Beat Electronics by Apple. The tweet was noting that he is going to become the first billionaire rapper. Finally this is in the news that Apple may be planning to acquire Beats Electronics at $3.2 billion. Beat Electronics is a headphone maker and music streaming service,founded by Hip-Hop star Dr. Drenad record producer, Jimmy Lovine. This could soon become Apple’s biggest acquisition ever. Sources said that the deal could be finalised as soon as next week.
The deal would come after Pandora Media Inc and Spotify have already appealed the forerunner of music streaming rebellion, while Apple’s wisecrack – the eight-month-old iTunes Radio – is stumbling. The music producer Lovine and rapper Dr.Dre, according to source familiar with Apple’s thinking. The company is well marketed by its artists and most recently launched a cross-platform for streaming music service that has been some success. People who are familiar with the negotiations said about the finalizing of the deal but they also cautioned that some details had yet to be agreed and talks could still left to be done.
Now, Beats would provide Apple with new practices in manipulative headsets, wearable devices, audio technologies and most importantly streaming music technology. As Apple is going to re-position iTunes in a world where competitors like Spotify and Pandora are growing at a very much rapid paces. So in buying Beats, Apple would get afuture music streaming provision, a well-associated team of industry managers, and high-side-line hardware. But the high price tag of Apple would represent a departure after two decades of acquisitions mainly in the hundreds of millions of dollars. Apple may struggle to make its streaming profitable.
This partnership does not come out suddenly from anywhere. Apple administrators Tim Cook and Eddy Cue have formerly met with Lovine to discuss about the streaming music. Apple and Beats have partnered up to sell Beats earphones merchandises in Apple Retail stores. In fact Lovine has told interesting stories about Apple and Steve Jobs. The post given in New York Post gives a little more detail about the deal. The explosion tells that Lovine and Dre will be joining Apple’s managerial team as a “special adviser to Tim Cook on creative matters” according to the Post’s sources.
As before, we have heard about the other companies like Facebook. This company made big attainments in February and March on WhatsApp and VR respectively. Unlike these, Apple has seen the little need to buy technology from other companies. Apple has turned its many own ideas into revolutionary products, such as Macintosh, iPod, iPhone and iPad. After completion, this would be the greatest purchase in the history of Apple which is 38 years old.
Since its visionary former CEO, Steve Jobs who died in October 2011, Apple has not released a breakthrough product. Now Tim Cook, Successor of jobs, is going to prove himself on the matter of growth of organisation.This deal would further enhance its existing and future product line ups.