Can Dr. Dre, Jimmy Iovine Bring Cool Back to Apple?

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May 29 (Bloomberg) - Bloomberg’s Rob LaFranco examines the newly minted wealth created by Apple’s $3 billion deal to purchase beats Electronics, the business partnership of Dr. Dre and Jimmy Iovine and what they bring to Apple’s music products. He speaks on Bloomberg Television’s “The Pulse.”

We have known that these guys are going to get pretty rich.

Talk about how rich, where they sit in the pantheon of billionaires, give us a few details.

It is a great story.

In the pantheon of billionaires -- jimmy is richer than dre.

Dre is not going to be a billionaire on this deal but he is getting closer.

A lot of conflicting numbers.

The stakes that they were in correctly reported, drew owns 15% and jimmy owns 25%. they own part of that in stock.

Apple is getting taxed at an income rate -- when the deal closes, he will be just over $1 billion.

Dre is a couple hundred million short.

Give me some history.

We all know the beats brand, it is everywhere.

What does the history look like?

The history of jimmy and dre.

Jimmy iovine was at the forefront of rap music.

He got into trouble with bad lyrics.

These guys have been partners for a couple decades.

They created a partnership, aftermath records, they have been partners for a long time.

This came out of the two of them wanting to do something different.

Basically, vivendi, which owns universal which owns interscope where jimmy is.

They said you can do this on the side, they got 14% for allowing jimmy to do this.

I will make about $500 million off of this.

Beats involves monster cable, it is a high-end parts maker in california.

They nailed it.

They got the marketing bright and creative the right buzz.

Dre has a huge cachet on the streets.

It became a must-have product.

Why now?

What are they selling this business for and what do they do next?

Their hugely successful, why the deal now?

It is as good as it going to get or do they have something else?

What's the inside track?

That is interesting, the why.

These guys are not your classic entrepreneurs.

They have used corporate cash to create assets that they have been built.

Record labels and then this company.

Jimmy has had a close relationship to steve jobs, who really tried to court the music industry when he was alive.

Apple has courted the music industry.

End of the music industry -- and then the music industry because of the structure of the deal.

This is apple pulling in one of the most influential people.

A guy who has immense credibility with -- this is what i am curious about.

They are getting two employees that are hugely charismatic and influential.

It is a bit like angela ahrendts in a way.

This almost feels like a hire deal.

They are buying influence, buying jimmy iovine's influence.

Talk about buying the value chain.

They can create their own headphones, that is not hard.

The beats music service is miniscule compared to spotify or itunes.

Apple has, in a series of attempts, not created a streaming music business, this gives me another chance with an established brand.

I think this is them bringing cool back tackle.

Rob lowe frankel -- cool back to apple.

Thank you, rob.

Reebok has committed millions of dollars in sponsoring group fitness event such as the spartan race.

It has a new workout concept that it says will revolutionize the fitness industry.

Here with more is caroline hyde.

Fresh, not so fresh.

I shower.

Regard trying to get cool back a nd focus on its roots.

This text has been automatically generated. It may not be 100% accurate.


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