S. Samuel
Interscope Records CEO Jimmy Iovine is finally moving on with his epic music biz run by parting ways with the label he founded over 20 years ago in light of a mega Apple/Beats Electronics deal. #WeOuttaHere
According to reports, Iovine will be succeeded by a notable Interscope Records executive.
Universal Music Group (UMG), the world’s leading music company, announced today that John Janick, COO and President of Interscope Geffen A&M (IGA), will succeed Jimmy Iovine as Chairman and CEO of IGA later this year. As separately announced today, Iovine, who founded the Interscope label in 1989 and later co-founded Beats Electronics in 2008, will join Apple® when it closes its acquisition of Beats. The transaction is expected to close in Apple’s fiscal fourth quarter (which closes in September), subject to regulatory approval. (Market Watch)
Iovine has already issued a statement to confirm the big power move.
“John Janick has exactly what it takes to lead Interscope Geffen A&M: he started his own label, he understands the art of making records and the unique dynamic between a record label and artist, as well as the enormous responsibility that comes with representing one of the greatest artist rosters ever assembled. It’s always been so important to me to be able to identify and train the right successor, so I’m thrilled to have found John Janick. And during the last few years, as I was preparing John to take the reins, Lucian Grainge was transforming UMG, a transformation that made it possible for me to make this transition knowing that Interscope is in good hands.” (Statement)
According to reports, Beats is now officially in Apple’s control after weeks of speculation.
On Wednesday, Apple made its biggest bet on the future of music since it first transformed the industry more than a decade ago with its iTunes music store. The tech giant made its largest acquisition ever, agreeing to pay $3 billion in a deal to acquire the maker of the popular Beats headphones, along with the streaming music service Beats Music. (Washington Post)
Following the news, Iovine spoke on finally sealing the multi-billion dollar deal.
The announcement caps off weeks of speculation surrounding the deal, which will see Beats co-founders Jimmy Iovine and Dr. Dre join Apple to play an unspecified role. Apple will pay $2.6 billion in cash and $400 million in equity that will vest over time, the company said. “I’ve always known in my heart that Beats belonged with Apple,” music mogul Iovine said in a statement. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.” (Washington Post)
