- In a Facebook video posted by actor Tyrese Gibson, Beats co-founder Dr. Dre appears to confirm (with colorful language) his company is getting bought by Apple (AAPL) for a large sum.
- Separately, the NY Post reports Beats' other co-founder, music industry legend Jimmy Iovine, is in talks to join Apple as a creative "special adviser" to Tim Cook.
- Questions are flying about Apple's intentions for Beats, and whether the deal represents a big strategy change. While Apple has bought plenty of component, software, and services firms over the years, it has shied away from acquiring established electronics hardware brands in favor of a do-it-yourself approach. Also, audiophiles generally aren't huge fans of Beats' headphones.
- At the same time, Beats, as a consumer brand known for premium pricing, a loyal customer base, and simple/iconic design, has more than a few things in common with Apple.
- Music industry sources tell re/code Beats is doing over $1B/year in sales. The site also speculates Apple is interested in Beats' streaming service - Billboard reported in March Apple is talking with labels about a subscription streaming service, and is thinking of offering an iTunes Android app.
- Apple -0.4% premarket. Pandora (P) -3.2%; the company is no stranger to selling off on reports of Apple music forays.
at CNBC.com (Nov 19, 2014)