“Apple Inc. is losing the public face of its music operations,” Tripp Mickle and Anne Steele report for The Wall Street Journal. “Executive Jimmy Iovine will transition into a consulting role in August and step back from daily involvement with the company’s streaming-music business, according to people familiar with his plans.”
“Mr. Iovine is one of the last of a team of prominent music executives Apple gained when it bought Beats Electronics LLC in 2014 for $3 billion,” Mickle and Steele report. “The departures raise questions about the lasting value of Apple’s largest deal at a time when its acquisitions strategy is attracting new interest with the planned repatriation of some $250 billion in cash it has held overseas”
“While the Beats deal jump-started Apple’s music-streaming business and eliminated a competitor, Apple had to revamp the first version of Apple Music because of design problems. Original video programming later pushed by Mr. Iovine also received critical reviews,” Mickle and Steele report. “‘If you ask the question, ‘Did they need Beats?’ the answer is no,’ said Gene Munster, managing partner at Loup Ventures, a venture-capital firm specializing in tech research. ‘They didn’t need it to get to where they’ve gone in music, and the existing Beats business has not done well.'”
Iovine “has told people close to him that he plans to spend more time with his family while supporting Apple Senior Vice President Eddy Cue, who oversees Apple Music, as needed, the people said,” Mickle and Steele report. “The timing of Mr. Iovine’s move, however, is linked to the Apple shares he received in the Beats acquisition, which will fully vest in August, they said.”
Read more in the full article here.
MacDailyNews Take: Buh-bye.
Jimmy Iovine could be effectively replaced simply by setting a large bucket at the rear end of a bull. — MacDailyNews, January 4, 2018
We’ve always had the inkling that Steve Jobs understood exactly what Jimmy Iovine was, but that, perhaps, Jimmy bamboozled Tim Cook with bullshit. $3 billion for Beats was a wild overpayment for shitty headhones and a music service with no subscribers. — MacDailyNews, June 9, 2015
Not all RDFs are created equal. Be careful, Jimmy. There’s a fine line between operating a functional RDF and a dump truck full of bullshit. – MacDailyNews, May 29, 2014
SEE ALSO:
Jimmy Iovine denies rumor that he’s leaving Apple in August – January 10, 2018
As Spotify crosses 70 million paid subscribers, distant #2 Apple Music’s Jimmy Iovine reportedly to bow out – January 5, 2018
Apple Music chief Jimmy Iovine may leave the company in August; departure timed to his shares fully vesting – January 4, 2018
Dr. Dre to star in Apple’s first, sex-soaked scripted television series ‘Vital Signs’ – February 12, 2016
Jimmy Iovine brings his own brand of ‘reality distortion field’ to Apple – May 29, 2014
Apple’s Dr. Dre apologizes for past abuse of women, Apple issues statement – August 21, 2015