Apple is buying Beats for the talent, a new report says.
Apple's $3.2 billion deal with Beats Electronics may not sound that interesting when compared to Google's acquisition of Titan Aerospace and Nest Labs, but a new report could finally reveal Apple's real intention.
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TechCrunch is reporting that the Beats deal will be an acquihire - a process that involves acquiring a company in order to recruit its employees.
In this case, it's about the talent and charisma of Beats founders Jimmy Iovine and Dr. Dre.
It has already been rumored that the two icons will be taking over key executive roles at Apple. Steve Jobs' official biographer, Walter Isaacson, takes the rumor further when he said this week that Iovine will be overseeing Apple's content business.
Sources told TechCrunch today that Apple is not buying Beats for the technology, but for the talent.
“They want Jimmy and they want Dre. He’s got fashion and culture completely locked up," one source said.
Although the deal was never confirmed by Apple, sources added that it is already 70 percent sure. It also didn't help when Dr. Dre crowned himself the first billionaire in hip hop earlier this month.