updated 10:02 am EDT, Wed May 28, 2014
Deal could be announced by end of week
Apple has lowered its asking price for Beats Electronics to $3 billion, but is in a position to announce a deal by the end of the week, according to sources for the New York Post. The original $3.2 billion figure is said to have been touted prematurely. "Apple hadn't even begun its due diligence process when news of the number came out," one source is quoted as saying.
The sources claim that despite reports to the contrary, Apple is more interested in Beats' headphones and speakers than in Beats Music. It's been speculated that Apple intends to use the Music platform to improve iTunes Radio. "Apple doesn't have a streaming music business so it would be a nice instant get, but the hardware is the profitable business," one source comments.
The Post estimates that Beats co-founders Jimmy Iovine (pictured) and Dr. Dre (Andre Young) will each receive hundreds of millions for the buyout, while key stakeholder Universal Music will receive over $400 million. Despite his video celebration, Dre will likely not become a billionaire in the near future; even if he pockets a predicted $750 million, that will only add to the $275 million he's earned in the past three years, and doesn't account for taxes.
Finally the sources add that Iovine and Dre will indeed attend Apple's WWDC keynote on June 2nd. Whether any products will be announced in connection, though, is unmentioned.