When Apple confirmed in 2014 that it was acquiring Beats for $3 billion, the deal became news around the world. However, Tripp Mickle .’s book after Steve has now revealed that the deal between the two companies was nearly jeopardized after a video of Dr. Dre on the web was leaked.
In 2014, before both companies confirmed the acquisition, there were multiple rumors of the negotiations. But since Apple is very concerned about secrecy, no one could say anything about it. But as described in a chapter of Mickle’s book (via I more), the deal was virtually confirmed by a video.
Beats co-founder Dr. Dre appeared in a video with actor and singer Tyrese Gibson where he celebrates Dr. Dre becomes a hip-hop billionaire, citing Apple’s acquisition of Beats. Jimmy Iovine, also a co-founder of Beats, immediately received a phone call warning him about the video that was accidentally posted to Facebook.
Following this event, Apple CEO Tim Cook invited Dre and Iovine to Cupertino for a private chat. The book says Cook was “disappointed” but that he would not cut the deal because he believed it was the right choice to take over Beats.
Iovine was anxious and worried that Cook would abolish the deal. Instead of the anger and cursing that would have poured out of Jobs at such a moment, Cook radiated calm. He told music executives he was disappointed and wished Dre’s social media outburst hadn’t happened, but said the video hadn’t shaken his belief that buying Beats was the right choice for Apple.
Yet there were consequences. The Beats acquisition was completed for $200 million less than expected. While rumors at the time suggested that the low number of Beats Music subscribers had pushed the price down, the book claims that Apple reduced the amount paid to Beats after Dr. dre.
Apple has acquired both Beats Electronics and Beats Music. While the company’s headphones are still available from Apple under the Beats brand, Beats Music has been incorporated into Apple Music.
After Steve: How Apple Became a Trillion Dollar Company and Lost Its Soul returns to Apple’s last decade, just after Steve Jobs stepped down as CEO to take care of his health. For a more in-depth look at the publication, read 9to5Mac‘s review by Zac Hall. The book is now in stores.
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