Apple's Acquisition of Beats Could Be Delayed Because of Valuation, Roles, and More

Last week, reports indicated that Apple's acquisition of Beats would not be finalized until this week. With the week ending and no deal having been announced, a new Billboard report offers insight into what could be holding up the deal.

beatsdreBillboard's sources indicate the deal "is complicated", as it would be Apple's largest acquisition. In addition, the news apparently leaked "too early", with Apple nowhere near ready for news to break despite publications like Re/code and The Financial Times reporting that the deal is close to completion.

A video that was uploaded to YouTube of actor/musician Tyrese alongside Beats co-founder Dr. Dre is another possible reason for the delay, with Dre claiming that he was the first billionaire in hip hop after the deal. The video apparently "freaked Apple out" and had the Cupertino company outraged.

Apparently, the Apple family near imploded with outrage when that video went up on Facebook of an ‘excited’ Dr. Dre with R&B singer/former Coca Cola pin-up Tyrese. In the video they share, in language perhaps unsuitable for a family blog, how Dre will be hip-hop’s first billionaire and other nice things about Compton.

Fourth, Apple allegedly isn't sure whether to give Beats co-founders Jimmy Iovine and Dr. Dre roles as permanent consultants or whether to give them full-time executive roles. Apple is also apparently unsure whether the two of them would fit into the company's corporate climate, despite reports that Iovine and Dre are the "big prizes" of the acquisition.

Finally, another rumored sticking point is Apple's valuation of Beats Music, which has around 200,000 subscribers and has been speculated as one of the main reasons behind the acquisition. Apple is apparently planning to keep Beats Music separate entity from iTunes in order to avoid cannibalization of iTunes music sales.

Apple pundit John Gruber of Daring Fireball offered another scenario, discrediting the Billboard report and speculating that Beats may have leaked to the deal, angering Apple and scuttling the acquisition before it could be completed.

Popular Stories

Apple Wallet ID Illinois

Apple Plans to Expand iPhone Driver's Licenses to These 7 U.S. States

Wednesday December 24, 2025 8:40 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
iPhone Top Left Hole Punch Face ID Feature Purple

iPhone 18 Pro Launching Next Year With These 12 New Features

Tuesday December 23, 2025 8:36 am PST by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another nine months, there are already plenty of rumors about the devices. Below, we have recapped 12 features rumored for the iPhone 18 Pro models. The same overall design is expected, with 6.3-inch and 6.9-inch display sizes, and a "plateau" housing three rear cameras Under-screen Face ID Front camera in...
maxresdefault

Where's the New Apple TV?

Monday December 22, 2025 11:30 am PST by
Apple hasn't updated the Apple TV 4K since 2022, and 2025 was supposed to be the year that we got a refresh. There were rumors suggesting Apple would release the new Apple TV before the end of 2025, but it looks like that's not going to happen now. Subscribe to the MacRumors YouTube channel for more videos. Bloomberg's Mark Gurman said several times across 2024 and 2025 that Apple would...
iOS 26

iOS 26.2 Adds These 8 New Features to Your iPhone

Monday December 22, 2025 8:47 am PST by
Earlier this month, Apple released iOS 26.2, following more than a month of beta testing. It is a big update, with many new features and changes for iPhones. iOS 26.2 adds a Liquid Glass slider for the Lock Screen's clock, offline lyrics in Apple Music, and more. Below, we have highlighted a total of eight new features. Liquid Glass Slider on Lock Screen A new slider in the Lock...
iOS 26

iOS 26.3 Brings AirPods-Like Pairing to Third-Party Devices in EU Under DMA

Monday December 22, 2025 3:20 pm PST by
The European Commission today praised the interoperability changes that Apple is introducing in iOS 26.3, once again crediting the Digital Markets Act (DMA) with bringing "new opportunities" to European users and developers. The Digital Markets Act requires Apple to provide third-party accessories with the same capabilities and access to device features that Apple's own products get. In iOS...
iPhone Fold Vertical Feature

Why Apple's Foldable iPhone May Be Smaller Than Expected

Tuesday December 23, 2025 5:21 am PST by
Apple's first foldable iPhone, rumored for release next year, may turn out to be smaller than most people imagine, if a recent report is anything to go by. According to The Information, the outer display on the book-style device will measure just 5.3 inches – that's smaller than the 5.4-inch screen on the ‌iPhone‌ mini, a line Apple discontinued in 2022 due to poor sales. The report has led ...
maxresdefault

10 Mac Apps Worth Trying in 2026

Wednesday December 24, 2025 9:27 am PST by
2026 is almost upon us, and a new year is a good time to try out some new apps. We've rounded up 10 excellent Mac apps that are worth checking out. Subscribe to the MacRumors YouTube channel for more videos. Alt-Tab (Free) - Alt-Tab brings a Windows-style alt + tab thumbnail preview option to the Mac. You can see a full window preview of open apps and app windows. One Thing (Free) -...
Foldable iPhone 2023 Feature Iridescent Search

Samsung Developing 'Wide Fold' With iPhone Fold-Like Design Ahead of Apple's 2026 Launch

Tuesday December 23, 2025 11:55 am PST by
Samsung is working on a new foldable smartphone that's wider and shorter than the models that it's released before, according to Korean news site ETNews. The "Wide Fold" will compete with Apple's iPhone Fold that's set to launch in September 2026. Samsung's existing Galaxy Z Fold7 display is 6.5 inches when closed, and 8 inches when open, with a 21:9 aspect ratio when folded and a 20:18...
iphone fold 3d print

Have a 3D Printer? You Can Make Your Own iPhone Fold Dummy

Tuesday December 23, 2025 1:31 pm PST by
Apple is working on a foldable iPhone that's set to come out in September 2026, and rumors suggest that it will have a display that's around 5.4 inches when closed and 7.6 inches when open. Exact measurements vary based on rumors, but one 3D designer has created a mockup based on what we've heard so far. On MakerWorld, a user named Subsy has uploaded a 1:1 iPhone Fold replica (via Macworld), ...

Top Rated Comments

Dulcimer Avatar
151 months ago
I can only hope that it's delayed indefinitely.
Score: 109 Votes (Like | Disagree)
troop231 Avatar
151 months ago
That is all I have to say :cool:

Score: 97 Votes (Like | Disagree)
Quu Avatar
151 months ago
I didn't think that video Dre made would help the negotiations. It came off very smug and I'm sure Tim Cook didn't like it one bit.
Score: 53 Votes (Like | Disagree)
goobot Avatar
151 months ago
I hope they just don't buy them.
Score: 49 Votes (Like | Disagree)
irfan22 Avatar
151 months ago
I've read so many articles giving reasons why they are buying beats. It still doesn't make any sense to me.

Hopefully Apple's official statement/WWDC will give real insight, once the deal is finalized (but hopefully not).
Score: 44 Votes (Like | Disagree)
Ryth Avatar
151 months ago
Read a fair bit about this potential acquisition but that was the first time I'd seen the Dre video.

If the deal wasn't sealed prior to him doing the YouTube video I think he's just shot him self in the foot with an AK.

Until the check is in the bank it's not your money - I thought he'd be a bit more business savvy than that, obviously not.

Apple does need to 'acquire' Jimmy Iovine. He is where it's at when it comes to taking the pragmatic approach to the way the music industry has been and is heading. Not to mention he has the cred in the industry and the smarts to make the negotiations.

I could see Iovine on the executive team as "iTunes Manager" or something along those lines.

Dre, I can't see being part of the Apple executive/corporate environment.

saggsy

Can't take the hood out of a thug.

I hope Apple nixes the deal and then Dre gets his @$$ handed to him by the BEATS board and management.

Apple should just hire Iovine and just forget the rest of BEATS.
Score: 38 Votes (Like | Disagree)