This Video Might Be What's Holding Up The Apple-Beats Deal
The rumor mill has been going crazy the last couple weeks with news that Apple is going to buy Beats for $3.2 billion.
People are wondering why Apple wants to buy the company, with the latest gossip being that it's not for the technology but is, in fact, for the talent.
So now we just have to wait for the actual deal to go through. Last week, it was determined that the deal wouldn't go through until this week. Now it's the end of this week, and still no confirmation that the deal is happening.
Billboard's Yinka Adegoke writes that there are actually five reasons why the deal hasn't been announced yet, coming from sources who are close to the negotiations:
- This is Tim Cook's first major acquisition, and it's huge, which makes it more complicated.
- The news was leaked a little too early; Apple is still trying to figure out what it's getting in the deal. And Apple has a history of not dealing well when news leaks early.
- Dr. Dre and Jimmy Iovine need to find their place at Apple. "But we've also heard concerns as to whether they'll fit in or if they would be best as permanent consultants rather than full-time executives," Adegoke writes.
- There's still lots of discussion revolving around the valuation of Beats Music, which has fewer than 200,000 subscribers and not a lot of market traction.
- A video went up on Facebook with Dr. Dre and singer Tyrese. The language in the video isn't quite safe for work. And sources tell Billboard that it's actually freaking Apple out. Remember that Apple is a conservative company, and having an outspoken spokesperson such as Dre might be a little much for Apple to handle.
Here's a link to the video (some NSFW language in there, so be advised). Some speculate that the video going up confirmed that the deal was real - in it, Dre calls himself the "first hip-hop billionaire" - but it might actually be what's holding the deal up.