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Apple reported to have pulled out of $3.2 billion Beats deal


Beats and Apple

According to Billboard, Apple is experiencing a serious case of pre-marital cold feet over its union with Dr Dre's Beats. The firm is apparently furious about the leak and subsequent media frenzy about the deal.

It was a deal that, honestly, didn't make much sense to those who watch technology firms. Apple is an innovative, technologically advanced behemoth with more money than most world governments. Beats is a headphone brand popular with fashionable kids, but lacking in any major innovation itself.

It was rumoured that Apple was interested in Beats because it has music streaming rights that Apple can't secure, and that the headphone business was a nice aside, but not the main event. However you look at it, and whatever Apple was getting, it was unlikely to be worth $3.2 billion.

Billboard also says that Apple is very conservative, and that the rap world's crass obsession with money, and talking about money in public, really put its executives off. The video with Dre and Tyrese was apparently too much and Apple staff "near imploded with outrage" when it was discovered by the world, and the media, on Facebook. Honestly, who can blame them. It might be okay to talk about how much money you've got in rap, but in the rest of the civilised world that's still considered fairly tasteless.

Speculating further, it's hard to know how far the deal was when it was announced. It's possible that it was in its infancy when Dre started celebrating being the first "rap billionaire" and that Apple, rightly, found the disclosure of the deal to be annoying - perhaps even a breach of the contract.

However you look at it, the silence from both camps is hardly encouraging. If Apple was keen to go ahead, surely it would have announced the deal by now and moved on. The fact it has not should give anyone pause for thought. Let's just hope Dre hasn't bought too much stuff he can't return, or he might go from the world's richest rapper, to the rapper with the world's biggest credit card debt.

Read more: Opinion: Five reasons Apple might buy Beats

Via: Billboard


May 26, 2014, 10:49 pm

Lol. If they really wanted to put a cat amongst the pigeons, Apple should try and buy Spotify.


May 27, 2014, 6:10 am

Har, har, har.
What an amazing SNAFU. Apple can't win here. Sheer fact it ever considered buying Beats means it will look a complete tit whatever it decides to do next.
And the fanboys who tried to defend the indefencible deal? Presumably they'll be the same ones defending pulling out.


May 27, 2014, 7:25 am

As part of their home automation drive, I heard that Apple are working on the iCandy for announcement at WWDC.
It's a handsome looking robot bartender that can mix you any drink you desire at home. There is a special app for your iPhone so that you can have your drink waiting when you come in the door. And it has a smart algorithm to automatically cue up your next drink depending on what music you're listening to.
Only thing is, they are missing a big name to help market it. Doh!

Alex Walsh

May 27, 2014, 9:04 am

There are plenty of better headphone manufacturers out there Apple could buy for much less that would be a better fit in terms of brand. Never understood the obsession with Beats, and the reviews of their products on Trusted Reviews seem to support my opinion.


May 27, 2014, 1:09 pm

Dr Dre is still worth around 400 million dollars, so i don't think he can buy anything that will put him in debt... Also saying that rappers are not civilised is complete stupidity.

Scotty Mac

May 27, 2014, 3:43 pm



May 27, 2014, 9:23 pm

I was waiting for an explanation what the benefit was; Apple hasn't been known for throwing money around so I assume there was a rationale. But any large acquisition involving many people is a big risk to Apple. It has a unique engineering culture, with plenty of potential for clash.

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