Earlier this month, news broke of Apple's intent to acquire Jimmy Iovine and Dr. Dre's Beats Electronics for $3.2 billion. According to Billboard, the news was expected to have been confirmed by the week of May 12. However, their sources are now saying it should be confirmed sometime this week.
Understandably, Billboard was skeptical about the delay, though they were reassured by their sources that the deal is still happening. In a new article, they list five reasons for why the deal might be on hold.
First of all, this is CEO Tim Cook's first deal of this magnitude, so the acquisition isn't as straightforward as one might expect.
Secondly, the news leaked too early. According to Billboard's sources, the company was "no where near ready to have this news break as it tries to work out what exactly it's getting for $3.2 billion."
The third reason, which isn't at all surprising, is the video that Tyrese took of Dre celebrating being the first billionaire in hip-hop. The video featured explicit language, and Apple is a fairly conservative company.
The fourth hold-up is the question of how Iovine and Dre will fit in at Apple. Some reports have suggested that the two will be overseeing all content while others suggest that Dre and Iovine wouldn't fit in the company's culture and would be permanent consultants rather than full-time executives.
Finally, there has been speculation about the worth of Beats Music, which was structured separately from Beats Electronics, and how that will play into the deal.
We'll keep you updated on more information when it is confirmed, but for now, read Billboard's full analysis here. Let us know what you think in the comments section!
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