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Apple Execs Reportedly ‘Outraged’ Over Video Leaking Beats Deal

apple-beats

A few weeks ago, Financial Times broke a story which said that Apple is in talks to purchase Beats Electronics for $3.2 billion. Sources reportedly told the publication the deal would be announced on the following Tuesday, at the latest.

The deal to acquire Beats would possibly be a play to allow Apple to jump right into the streaming music subscription service, since iTunes Radio doesn’t seem to be doing as well as the company hoped. A few weeks after they reported the acquisition, we still have no official information from either Apple or Beats saying that the deal is being discussed or that it will happen.

Well, Monday and Tuesday passed and we were assured the deal would actually be announced early this week. By early this week we were told it would now be announced next week. We, like other outlets, have been reassured the deal is happening…or as close to definitely happening as any source is willing to say given they’re speaking on background.

dr dre beats tyrese.pngYinka Adegoke at Billboard published a new story today citing five factors that are holding up the Apple-Beats deal. Apparently after Dr. Dre released that video on actor Tyrese Gibson’a Facebook page, Apple executives were outraged over leaks of the Beats deal. Here are five reasons Adegoke thinks the acquisition has been held up:

  1. “It’s Complicated.”
  2. “They Leaked the News Too Early.”
  3. “That Video Freaked Them Out.”
  4. “How Will Jimmy Iovine and Dr Dre Fit In?”
  5. “The devil’s in the deal terms”

If the report is correct in saying that Apple executives are upset at the leaked video, it could be possible that it will affect the end result of any talks that are occurring between Apple and Beats Electronics. John Gruber of Daring Fireball writes:

That they’ve been so wrong thus far makes me disinclined to believe anything Billboard (or The Financial Times, or The Wall Street Journal, or anyone else who reported the deal as imminent back on May 8) reports about it now… Anyone who thinks “Apple is suffering a crisis of confidence right now” doesn’t understand Apple at all. No wonder Billboard has botched the story on this acquisition.

Do you think the reports of an Apple-Beats deal are correct? Let us know what you think in the comments below.

A technology enthusiast and Computer Science student. Follow me on Google+

  • Chrome262

    it wouldn’t surprise me if billboard or wall street journal were wrong, we have seen many a news outlet rushing to story of late, without checking sources. Journalism is almost as good as astrology, especially with all these product rumors.

  • Al

    Apple would have had an NDA in place for this, or any, deal that they do. Assuming this story has merrit, It wouldn’t surprise me if Apple would stop the deal since the terms of the NDA were broken.

    Incidentally, as I’ve said before…
    Nick, man, proofread your work before submitting it, and take some night courses in writing skills so that you can learn proper sentence structure, etc. Gary, you should be editing his submissions.

  • Pwn3d

    Apple would have had an NDA in place for this, or any, deal that they *make. Assuming this story has *any *merit, *it wouldn’t surprise me if Apple would *break the deal *, (comma) *as the terms of the NDA *may have been* broken.

    The first part of your comment has now been proofread, but I don’t have the energy for the second part, for which I apologise profusely! I must admit, I didn’t even delve into the technicalities of your poor choice of words, such as, “deal”, “work”, etc. You did fairly well, considering I only had a chance to edit the first forty words, and you only made “a few” grammatical errors. Bravissimo! *slow handclaps* /end derision

    Need I continue on with this takedown, Al? Please sod off! Oh, and whilst you’re buggering off, please do get a life!

  • Al

    As someone who is just commenting, I have the luxury of not needing to care too much about how I write. A person who is developing a professional article, on the other hand, does not have that luxury.

    Having said that, your opinions are primarily subjective and not relevant to correct word use or sentence structure. So… good on you for completely wasting your time.

  • Roger

    When I saw the leaked video – I thought it would be strange for one side of an investment banking deal be so public about a transaction. Usually, the investment banker would caution the party they represent to keep everything secret. If a 3rd party found out about a deal through spying, etc., it may have already violated a dozen insider trading laws. So we should not be surprised to see this deal go sour.

  • ChrisShield5

    I think it’s pretty obvious what happened. This my speculation.

    Apple made the deal, with hopes of announcing it as a major centerpiece to it’s new streaming services (that I expect will be announced at WWDC). The news were leaked early (including a major leak from Dre himself). Apple got (rightfully) upset, since that was going to be big news at WWDC. Now, the cat is out of the bag. It makes Dre look unprofessional, and probably broke some NDA agreement, making them a lot more reluctant to ink the deal. I still think it will be official in time for WWDC, but is now less of a shock; and people expect streaming announcements for WWDC. The secrecy of Apple products has gone down hill a lot in the last past years (ever since that iPhone Gizomodo prototype leak). I think it’s hurting them more than people realize.