“In December 1996, then-Apple CEO Gil Amelio paid $400 million to acquire Steve Jobs’ NeXT. Jobs’ second coming as CEO turned Apple into a powerhouse,” Peter Cohan writes for Forbes. “And 18 years later, Tim Cook spent $3 billion — 2% of its cash — to acquire Jimmy Iovine’s Beats.”
“Will Iovine replace Cook like Jobs replaced Amelio?” Cohan writes. “If so, this deal could be a catalyst for Apple stock.”
“Beats’ co-founders Iovine and Dr. Dre will work for Apple. According to the Times they will report to Apple’s content chief, Eddie Cue, who reports to Cook. But with all the lavish praise of Iovine’s ability to inspire talent to write hits and to envision how the music industry will evolve, he evokes memories of Jobs’ creative genius,” Cohan writes. “What Apple really needs is a visionary leader who can tap enormous new profit pools. And Tim Cook is not that person.”
“If Iovine can convince Apple’s board that he can do that — perhaps Cook can find comfort in the role where he used to excel — making Apple’s trains run on time while Iovine figures out where they should go,” Cohan writes. “Unless Tim Cook just bought his successor for $3 billion, my guess is that Iovine will not be satisfied reporting to Cue and will leave once he gets his money.”
Read more in the full article here.
MacDailyNews Take: The lack of respect afforded Tim Cook in some quarters is appalling.
Steven Levy: With Beats Music service, Apple’s Tim Cook goes against the wisdom of Steve Jobs – May 29, 2014
Apple + Beats = MTV? – May 29, 2014
Eddy Cue and Jimmy Iovine: Steve Jobs would be extremely proud of Apple today – May 29, 2014
Jimmy Iovine brings his own brand of ‘reality distortion field’ to Apple – May 29, 2014
JPMorgan: Apple may spin-off Beats Electronics business – May 29, 2014
Apple CEO Cook: Beats deal a ‘no-brainer’ – May 28, 2014
Tim Cook’s internal memo to Apple employees regarding Beats acquisition – May 28, 2014
It’s official: Apple acquires Beats Music and Beats Electronics for $3 billion – May 28, 2014
Apple reportedly cuts $200 million off Beats purchase price – May 28, 2014
Why the Apple-Beats deal may be dead – May 27, 2014
Has Dr. Dre’s drunken boast cost his company $3.2 billion? – May 24, 2014
Apple might buy Beats Electronics with foreign cash, effectively paying much less than $3.2 billion – May 23, 2014
70% chance Apple’s Beats deal is happening and, if so, it’s a Dr. Dre, Jimmy Iovine acquihire, says source – May 22, 2014
As MacDailyNews already posited, Walter Isaacson thinks maybe Jimmy Iovine will run Apple’s content business – May 20, 2014
Apple strikes a new chord in the future of music with Beats acquisition – May 18, 2014
How Tim Cook buying Beats is like Steve Jobs buying SoundJam – May 18, 2014
Apple’s $3.2 billion Beats acquisition may not be finalized until next week – May 15, 2014
Monster CEO sounds a little bitter over Apple’s planned $3.2 billion Beats acquisition – May 14, 2014
Ben Thompson on possible Beats buy: Is Apple losing what makes Apple, Apple? – May 13, 2014
Nolan Bushnell: Beats is a ‘good deal for Apple,’ but it says Apple is ‘not an innovative tech company’ – May 13, 2014
Curated music influencing Apple’s jump into streaming – May 13, 2014
Beats Music is actually so good that I’m worried about Apple ruining it – May 13, 2014
Apple could become most powerful record label in the world with Dr Dre, Jimmy Iovine onboard – May 13, 2014
Bob Lefsetz on Apple-Beats deal: Tim Cook is an operations guy, he’s clueless, and the company has no vision</a – May 13, 2014
Apple CEO Tim Cook makes break from managerial style of Steve Jobs – May 12, 2014
Analyst Sacconaghi on Apple buying Beats: ‘We struggle with the rationale for this deal’ – May 12, 2014
Cody Willard: Apple’s Beats buy is just stupid
– May 12, 2014
Apple may unveil Jimmy Iovine, Dr. Dre executive appointments at WWDC – May 12, 2014
Apple CEO Tim Cook’s pursuit of Beats seen presaging more takeovers – May 12, 2014
Former eMusic CEO explains why Apple wants to buy Beats – May 12, 2014
Apple’s deep ties with Jimmy Iovine key driver of Beats deal – May 12, 2014
Removal of Dr. Dre video about Apple-Beats deal likely means acquisition is real and imminent – May 10, 2014
Dr. Dre boasts of Apple-Beats deal in YouTube video, on Facebook – May 9, 2014
Game changer: Apple buying Beats could radically transform the digital music business – May 9, 2014
If Beats deal happens, Apple is acquiring a fad, not quality, and that is troubling – May 9, 2014
If Apple’s really buying Beats, here’s hoping it’s brilliant in a way which isn’t immediately obvious – May 9, 2014
The reason for Apple’s $3.2 billion interest in Beats? Spotify – May 9, 2014
Apple buying Beats Electronics: Its best idea since the iPad? – May 9, 2014
Why would Apple want to blow $3.2 billion on Beats Electronics? – May 8, 2014
Apple in talks to buy Beats Electronics for $3.2 billion – May 8, 2014
Forbes is trolling for hits. What a ridiculous suggestion.
Headline question answer is easy.
To be CEO, you need to be technically competent, not a “mouth.”
If you can’t do, teach. If you can’t teach, blog.
Really? NO! Tim Cook isn’t going anywhere. Stupidity is rampant these days!
I think he did
Angela Ahrendts will be Tim’s successor.
Right on the nose!
Jesus, people are so bloody stupid.
Are you calling Jesus stupid?
I think actually agreeing with Jesus, who, to paraphrase one of his last “mortal” thoughts: “Don’t be too hard on them, dad. They’re stupid.”
I love it. Nice paraphrase. Applicable to so many situations.
What a bukakke of stupid this purchase has begat.
What a silly thought!
No it’s dr dre he will be CEO
Lol.. Man it is mind boggling to see absolute stupid comments like this get published !
Woodrow Wilson had a saying: ” I not only use all the brains that I have, but all that I can borrow.”
Apple is no longer the company Steve Jobs found and later rescued. Rather, it’s a global presence facing far different challenges.
Cook is hiring extremely talented people while winnowing out those not capable of taking the franchise to the next level. Iovine, like Ahrendts and many others, are wonderful brains that he has “borrowed.”
Cook continues to impress.
Excellent point. This isn’t your father’s Apple. Somehow I don’t envision Jimmy running this huge corporation. Having a great deal to do with some portion of it perhaps? But it’s way too big and complicated for Jimmy. And I’m not sure how well Jimmy is going to work out anyway? Steve Jobs was a loose cannon but he and the Woz started Apple. So he knew the company inside and out and knew exactly what it needed when he returned. He was there at the beginning. Let’s see if Jimmy makes it a year. I believe he will be kept on a bit of a short leash. Besides, music isn’t where it’s at for Apple going forward. Jimmy was just brought in to bolster iTunes radio. He’s not going to run the company. Video and monetizing all those credit cards is where it’s at for Apple. Along with the automobile and home automation these things will surpass music easily in the future. I think you’re correct about Tim hiring the best talent for such a huge company as Apple. A huge, diversified global corporation. I don’t see Jimmy or Angela running all that.
some other “loose cannons.”
I wonder what kind of retention bonus is built into the new acqui-hire of the new dream team Jimmy n’ Dre?
Additionaly, how do you manage this talent with such out-sized egos?
Iovine is a creative guy. He now has the worlds larger a creative sandbox to play in. I don’t think he’s leaving any time soon.
Great, instead of “innovative” gold colored products now we’re going to get “innovative” red and black colored products. I miss Steve.
While I don’t know if the acquisition is good or bad, and it’s too soon to make that call, I like that Tim Cook knows his lack of strength.
Steve Jobs was passionate about music. I don’t get that vibe from Tim, so he hired (read: bought) people that are. Whether that works out or not remains to be seen.
People need to stop expecting Jobs-behavior from Cook. That just won’t ever happen.