Apple Inc. (NASDAQ:AAPL) and Beats Electronic co-founder Jimmy Lovine are reportedly in talks about the co-founder joining the iPhone maker as a special adviser to CEO Tim Cook. The latest report is in addition to earlier rumor of Apple being in the process of acquiring Beats Electronics. It was reported in the New York Post that Lovine, a music executive, will take up his role at the Cupertino, Calif.-based iPhone maker.
Doubt over Lovine’s exact role at Apple
Apple Inc. (NASDAQ:AAPL) is apparently in talks to acquire Beats for $3.2 billion, which took the media and market by surprise. There are some reports saying that the role of Lovine would be limited to offering suggestions to Cook in “creative matters” after the deal. There has not been any official word on the advisory role yet. Lovine could join Apple as an “acqui-hire” once the deal is concluded.
At present, Lovine is the chairman of Universal Music Group’s Interscope Geffen, simultaneously holding his position at Beats. Lovine is a popular name in the music world, having sponsored a number of high-profile artists during his career.
Back in 2013, while speaking for an interview Lovine mentioned to had close relations with Late Steve Jobs and made efforts to sell Jobs a subscription based music service. Beats came up with Beats Music, whereas Apple Inc. (NASDAQ:AAPL) launched iTune Radio and both the services were different from each other entirely.
Deal good for Beat investors
Market experts and Industry watchers are unable to find sense in the deal, which creates doubt over the special advisory role of Lovine at Apple Inc. (NASDAQ:AAPL). Lovine is currently under contract with UMG, but that will end by this fall. If taken in, Lovine would join the ranks of Angela Ahrendts, the former Burberry executive who recently came to Apple to head its retail division. UMG will earn major benefits from the Apple-Beats deal, as the company holds a stake in Beats worth $400 million.
Len Blavatnik’s Access Industries also holds a stake in Beats. If Apple Inc. (NASDAQ:AAPL) successfully acquires Beat, it will increase the value of music content and help Spotify ahead of its initial public offering.
Report of talks between Apple Inc. (NASDAQ:AAPL) and Beats Electronics surfaced first in the Financial Times, but there was no comment from Lovine or his spokeswoman over this possible development.