Dr. Dre can now add Apple executive to his ever-diverse resume. The rap mogul, along with Beats co-founder Jimmy Iovine, sold their Beats Electronics empire to Tim Cook and company for a cool $3 billion. The deal, which gained attention after Dre and company leaked a celebratory video on YouTube, is Apple's biggest acquisition to date, giving the iPod maker access to Beats' music subscription service and its hardware business.
Much to the chagrin of audiophiles around the world, Beats headphones are as ubiquitous as the iPhone itself. And with 250,000 subscribers signed up to its Beats Music streaming service, the recent acquisition is just the foundation that Apple's struggling iTunes service needs.
But while many fans are celebrating the acquisition and are eager to see what's in store for at next week's WWDC and beyond, others lament yesterday's announcement. They fear about what Apple may do to Beats Music, especially since it pales in comparison to Spotify's 40 million active users — 10 million of which are paying subscribers.
Although Apple has a history of terminating its competition, Apple SVP Eddy Cue reaffirmed the company's commitment to Beats on stage at the Code Conference in Southern California, calling it "the first subscription service that really got it right." Cue also hinted at future hardware, saying they've got the best product pipeline he's seen in his 25 years at Apple.
What do you think? Are you excited to see what these two companies can do together? Or would you have preferred to see Beats extend its (broken) relationships with companies like HTC and HP? Are you weary of Apple's influence on the streaming music service?