The deal happening between Apple and Beats is the largest that the company has ever made and one that has been surrounded in mystery since news of it leaked weeks ago. As a part of the process, though, there are ongoing negotiations and Apple wasn’t ready for people to know about it just yet.
In any case, the continued talks have now resulted in the value being reduced to $3 billion. That loss of two hundred million comes with the revelation that there are just 111,000 subscribers to Beats Music, which is much lower than what Apple had anticipated. The headphone part of the company is still going strong, though, with $450 premium sets being on par with the kinds of premiums that Apple is used to dealing with.
That does still leave the question of the roles of executives Jimmy Iovine and Dr Dre. Back in 2003 Steve Jobs was trying to get Iovine on board for a video service, but it isn’t known if that is still on the table or what kind of role he will actually be playing. In addition to becoming hip hop’s first billionaire, there might still be a place for Dre as well at Apple, although that is subject to even more speculation.
The deal could still be weeks or months away from being finalized, although people are expecting an announcement to be coming next week at the Worldwide Developers Conference. There is a lot on the plate for Apple this year, so they will be having a busy convention, although this is one part that people are looking forward to knowing more about.
Source: Apple Balla