Jimmy Iovine and Dr. Dre could be introduced as Apple execs as early as June 2nd, when Apple will kick off its annual Worldwide Developer Conference, say people familiar with the Beats Electronics negotiations speaking with Billboard.
The rumoured amount for the Beats acquisition is practically the same as what Google paid for Nest: $3.2 billion. The deal is expected to become official later this week. After selling the company, the two co-founders, Iovine and Dr. Dre, are said to be joining Apple as executives: Iovine could oversee Apple’s music strategy and handle relationships with labels and publishers, according to people familiar with the matter.
On the other hand, Music industry critic Bob Lefsetz — renowned for calling out industry giants by name — penned a post and outlined a handful of reasons why acquiring Beats would be a desperate move for Apple:
The overanalysis is mind-boggling. Tim Cook is an operations guy, he’s clueless, the company has no vision and this is evidence of it. Steve Jobs was famous for saying one thing and doing another, decrying this and then doing exactly that. Anybody with a brain knew that streaming was eclipsing downloads. Except at Apple, where they were adhering to Jobs’s philosophy. But it turns out Apple had no Plan B, no streaming service ready to be launched when necessary. It’s like they never read Clayton Christensen’s “Innovator’s Dilemma,” despite it being vaunted in the tech press for over a decade. If you rest on your laurels, you’re gonna be history tomorrow.
7. Yes, this is about music streaming. Do you really think Apple wants to own a headphone company, one built upon fashion?
8. Yes, Angela Ahrendts will figure out a way to sell more Beats headphones, she’s a marketing guru, but that’s the problem with Apple today, it’s all marketing and no innovation/vision.
He sees potential in Iovine’s industry connections — which could serve Apple’s purposes — but he also mocks the actual Beats products: “The headphones are mediocre, and Beats Music is a me-too service. There is no story here. Other than a desperate company making a deal with someone with something they need.”
Although we don’t quite see a reason for Apple to invite Dr. Dre or Jimmy Iovine on stage for the WWDC next month, Dr. Dre has already been featured in a Steve Jobs keynote speech, when he iChatted about the iPod and iTunes.