Apple and Beats Electronics reached a final merger agreement in which Beats is folded into Apple, probably by September. Facts are emerging and suppositions are flowing.
In a brilliantly reasoned examination of Apple’s business crisis and key advantage, Mark Mulligan of the Music Industry Blog lays out possible consequences of the Apple/Beats deal for both Apple and the streaming-music industry.
READ: Apple, Beats, and Streaming Music’s Mutual Fear Factor (Music Industry Blog)
READ: “Music is dying,” according to Apple exec (ReadWrite)
READ: Apple’s Digital Music History (ReadWrite)
What was really acquired?
Apple’s press release mentions Beats Music first. The Beats headphone and speaker business is part of the deal, but has not come up much in prepared and informal remarks.
READ: The formal Apple announcement (Apple.com)
READ: CEO Tim Cook’s memo to Apple employees (The Verge)
READ: Tim Cook’s interview immediately following the announcement (Re/Code)
Is it an acquihire?
Acquihires are talent acquisitions masquerading as technology or product acquisitions. In this case, Apple clearly wants (and needs) an interactive streaming service, and is probably glad to have the robust electronics side of Beats. But Tim Cook, and many media observers, are emphasizing the value of Beats co-founders Jimmy Iovine and Dr. Dre as talent acquisitions
READ: Apple just hired two of the smartest music moguls of our time (Gizmodo)
READ: Did Tim Cook Pay $3 Billion for his Successor? (Forbes)
READ: Apple confirms its $3-billion acquihire of Jimmy Iovine and Dr. Dre (Pando.com)
READ: Why Jimmy and Dre are so crucial to the future of Apple (Business Insider)
READ: Jimmy Iovine, a master of beats, lends Apple a skilled ear (New York Times)
The business and economics of the deal
READ: Two charts show why Apple had to buy Beats (Business Insider)
READ: The Apple/Beats deal: What the analysts are saying now (CNNMoney)
READ: The ex-banker who is now Apple’s chief deal-maker (Bloomberg BusinessWeek)
READ: Apple Buys Beats: What Wall Street’s Saying (The Street)
READ: Ballsy Beats deal a long shot for Apple (CNBC)