A couple of weeks ago, the rumors suggested that Apple’s deal to acquire Beats could be finalized this week, but given that it’s already Friday and we still haven’t heard anything yet, it looks like there could be yet another delay. According to the folks at Billboard, they have heard several reasons as to why the deal has yet to be officially announced.
For starters, it seems that the deal is one of Apple’s biggest deals to date, and is also Tim Cook’s first major acquisition, making things a bit more complicated than it should be. Secondly, the rumors of the deal were leaked too early. When the rumors were first reported, it was suggested that the deal was close to being finalized. Apparently that is far from the truth as Apple was still in the middle of negotiations.
There was also the video featuring Dr. Dre and actor Tyrese Gibson that seemingly confirmed the deal, a move that Apple was not too pleased about, especially given how tight-lipped Apple is known to be. It also seems that Apple is still trying to figure out where Beats’ founders, Jimmy Iovine and Dr. Dre will fit into the company. We had previously heard that Apple could be interested in leveraging their industry connections to help make the company more culturally relevant.
Last but not least, with the purchase of Beats, it comes with Beats Music as well, and that Apple is trying to put a number of the worth of Beats Music. Given that the service is relatively new and does not have that big a user base, perhaps it might not be worth much to Apple, although the service is also backed up by major record labels, like the Warner Music Group who might beg to differ.
It seems that all of these “issues” are the reason why Apple has yet to finalize the deal. So when will the deal happen then? Well that’s pretty much anyone’s guess, but hopefully we will have more details to share come next week.
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