Apple’s rumored acquisition of Beats is expected to be announced this week. When the rumors hit the web a couple of weeks ago, many were puzzled by Apple’s move. Apple already had iTunes and iTunes Radio, and it seemed unlikely that they would buy Beats to make headphones for them since Apple’s acquisitions are less brand-based, so why is the Cupertino company interested in them?
Well Steve Jobs’ biographer, Walter Isaacson, offered some insight on the deal in an interview with Billboard. According to Isaacson, he speculates that by buying beats and bringing names like Jimmy Iovine and Dr. Dre on board, they will have the industry connections they need to help make the necessary deals for their upcoming TV products.
This is based on how Iovine has used his connections in the industry to help Apple secure deals in the past. For example it was back in 2003 that Iovine helped persuade the major music labels to hop aboard the iTunes train, and had even suggested to Steve Jobs that Apple should buy Universal Music Group.
Iovine had also helped Apple make a deal with U2 to launch the (RED) iPod Classic, which has since extended to other products that have been put up for auction. According to reports, Apple has struggled with trying to secure deals for Apple TV for years, but nothing solid has materialized, which is where Iovine could step in.
It’s an interesting theory but take it with a grain of salt for now, especially since Apple has yet to officially announce anything, but check back with us later in the week to see if there are additional details that can be had.