A couple weeks ago, the hip-hop world went bananas after hearing that Apple was interested in purchasing Dr. Dre’s Beats headphones for a few honey buns, $3.2 billion. The groundbreaking deal, if it goes down, will push the Compton self-made millionaire close to billionaire status. News of the deal broke weeks ago, but it has yet to come to fruition. So, what’s the hold up?
Well, according Billboard.com, $3.2 billion isn’t that simple to just hand over, even for the house that Steve Jobs built. This is the biggest deal that Apple has been involved in, so execs in Cupertino, Cali’, are moving with caution, Apple’s CEO Tim Cook said to Billboard.com. Another source admitted that the news was prematurely leaked. Apparently Apple was trying to figure out how much they would profit from the deal when Dre announced that he was hip-hop’s first billionaire. The company also got shook up when when Dre and Watts crooner, Tyrese released the now famous video (It was probably the alleged drunk guy screaming, ‘South Central’ and Baby Boy C-walking that scared them). If Apple is afraid of that, it’s obvious that they don’t understand the hip-hop culture. Which brings up another question. What would Dre and Iovine do while while, or if, employed at Apple?
Well, that’s a problem the company is trying to tackle. They’re wrestling with the idea of making the music execs full-time Apple executives or have them act as specialist to the company. Walter Isaacon, Steve Jobs biographer, said that he anticipates Dre and Iovine will oversee all the content. Also, there’s been rumors that Apple is more interested in Beats Music than the headphones. The fact that Beat Music has less than 200,000 subscribers, despite its partnership with AT&T, refutes that argument. But, the source say that Apple is trying figure the total value of Beat Music. “We’d heard a $200 million valuation before news of the Apple deal broke,” Billboard wrote. The continued; “Is it worth that much or in fact a lot more if it is the reason for deal? This is what both sides have been unable to agree on so far.”
Darryl Robertson (@darryl_robertson)