Rapper Kayne West has an entirely different theory about why Apple Inc. (NASDAQ:AAPL) “really” paid an eye-popping $3 billion to buy Beats Electronics late last month. Kayne said at the Cannes Lions festival that the iPhone maker bought Beats after witnessing the benefits that Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) receiving by joining hands with Jay-Z, reports AdWeek.
Apple trying to regain the lost cultural ground
West said that the Korean electronics giant received an instant cultural cachet by partnering with Jay-Z last year. Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) had offered one million copies of Jay-Z’s latest album to Galaxy smartphone buyers. Kayne says Apple Inc. (NASDAQ:AAPL) has tried to do much the same thing buy purchasing Beats for $3 billion and acqui-hiring Jimmy Iovine and Dr. Dre.
The outspoken rapper who frequently comes up with weird statements said Apple Inc. (NASDAQ:AAPL) has lost its cultural touch since Steve Jobs passed away in 2011. Bringing in Iovine and Dre is aimed at regaining some of that lost ground. Kayne believes the Beats deal would never have happened without the Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) deal.
Kayne a big fan of Apple
Kayne West is an Apple Inc. (NASDAQ:AAPL) fan, and has previously compared himself to Steve Jobs. Jimmy Iovine and Dr. Dre have reportedly been given senior executive roles in Cupertino. Besides lending his name to Apple brand, Dre has an impeccable ability to recognize what’s really “cool” and transform that into a consumer product. Jimmy Iovine has strong connections in the music industry, which could help Apple win more content deals.
Anyway, Kayne West’s logic doesn’t make much sense. Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is estimated to have spent about $20 million on the endorsement deal with Jay-Z. That’s far less than the $3 billion that the Cupertino-based company paid to buy Beats Electronics. If Tim Cook really wanted to shore up the cultural credibility, he could have found other ways without spending so much money.
Apple Inc. (NASDAQ:AAPL) shares were down 0.49% to $91.62 at 11:02 AM EDT on Wednesday.