Beats Electronics maybe about to be bought by Apple in what could be a 3,2 billion dollar deal.
The maker of Beats headphones and sound systems is the target of Apple in what looks like a massive deal for both companies. Beats Electronics is the creation of Hip Hop artist Andre “Dr. Dre” Young and co-founder recording mogul Jimmy Iovine, and together they have revolutionized the headphone and speaker industry with their stylish and ultra-high quality products.
Apple, on the other hand, with the recent death of their co-founder and inspirational leader Steve Jobs, maybe looking down a new road to reinforce the stylish designs and innovative technology that Jobs inspired. Beats has the capability to bring many things to the table when you think about a tie-up with Apple. The iMac, iPod, iPhone and iPad, much like all the Apple products that came before them, are all exquisitely styled, impeccably constructed and brilliantly marketed. It comes as no surprise that Apple sees in Beats many of the same traditional Apple values in respect of consumers’ electronics products. But is there more to this deal than that?
Andre “Dr. Dre” Young and Jimmy Iovine may also be major parts of this deal. It is expected that they both will take on senior roles at Apple and will no doubt have tremendous influence in the future of the company. The Beats line of products suggests that both companies have had similar philosophies about design, quality and marketing, but unquestionably there must be more to it than that.
Iovine and Dr. Dre are both very well respected in the music industry and bring a remarkable level of experience to Apple. One of the most significant developments in the music business in recent years has been the shift from purchasing music in local shops to the availability and purchase of music through Itunes, which was another of Jobs brilliant strategic creations to supply downloaded to music to the ipod and iPhone, and now also via Apple’s iTunes Radio. Stream music is perhaps the primary reason that Apple is as extremely keen on Beats as Beats boasts a streaming music service that knows no rival and has paid subscriptions at premium prices that far outdistance Apple’s iTunes Radio.
Apple was a company founded by some very smart, creative and ambitious people, and Steve Jobs was point man in their successful equation. There is no doubt that many of the most successful companies were founded in the same way but it is the people with that extra vision and talent for applying all the intangibles into making truly outstanding consumer products that allow them to standout from the rest. Apple certainly has many very talented and creative people still on board after the loss of Jobs but maybe the board of directors at Apple has smartly realized that a certain decisive edge to their design team is not longer there and they see something that they like very much in Beats.
Apple is not a company that is known for making costly acquisitions but this merger of two outstanding brands will be something to be watched in the months ahead. Yet to be revealed is how Apple will absorb the Beats products into the Apple catalogue but it will certainly be very interesting, just as Steve Jobs would have wanted it.