Beatles' Apple Corps to Purchase Apple Computer

iTunes to Feature Songs by the Beatles

by CMUG Staff (Posted: 4/1/04)

In a surprising move, Apple Computer, Inc., announced today that it will move forward and accept a buyout offer made by Apple Corps Ltd, the company established in 1968 by The Beatles. In recent weeks, rumors have indicated that perhaps Sony would purchase Apple Computer, but the move by Apple Corps has surprised and puzzled many. "I'm a bit stunned," shared Apple Computer co-founder Steve Wozniak. "I had no idea Steve [Jobs] had plans to do this. I guess in some way it makes sense and will finally put an end to the whole legal situation with Apple Corps."

Rumors of a takeover of Apple Computer have recently been in the news. A Reuters news article commenting on the speculated takeover of Apple by Sony Corp, read "Since at least the mid-1990s, Apple has been posited as a takeover target, with suggested bidders ranging from Sony to Sun Microsystems Inc." None, however, anticipated a takeover at this time and none speculated the takeover would originate with The Beatles' Apple Corps Ltd.

At a press conference held in London, Apple Computer CEO Steve Jobs appeared (wearing his trademark black turtle-neck sweater and jeans) with the two surviving members of The Beatles—Paul McCartney and Ringo Starr. When asked about the surprise move, Jobs smiled and quipped, "We decided to come together right now and, frankly, it's getting better all the time!" referring to songs by The Beatles. Not to be outdone, McCartney added, "I think this will be a positive situation for all. It is an insanely great moment in music and computer history," referring to Jobs' famous catch-phrase. "We got tired of taking Apple to court," laughed Starr, adding, "So we figured it would be easier to just buy them." Apple Corps and Apple Computer, Inc. reached a settlement in 1991 following a trademark dispute. More recently, Apple Corps has taken legal action against Apple Computer, Inc., claiming the iTunes Music Store and iPod music players violate terms of the past agreement which places certain restrictions on Apple Computer, Inc. with regards to music.

Yoko Ono, widow of deceased ex-Beatle John Lennon, held a brief press conference in New York in protest of the planned takeover. "This whole thing is upsetting to me," remarked Ono, referring to the announcement by Apple Corps. "John [Lennon] would never have approved of this." Ironically, Ono is featured in the 1998 Emmy-winning "Think Different" Apple Computer television commercial, along with John Lennon.

The Beatles first made their musical mark on the world in the early 1960s and went on to sell millions of records with hit songs like "Yesterday," "Hey, Jude" and the wildly successful and innovative album "Sgt. Pepper's Lonely Hearts Club Band." Four members made up the group including McCartney, Starr, Lennon, and George Harrison, who passed away in 2001.

In a major coup for iTunes, Jobs announced that songs by The Beatles will be offered on the online music store beginning April 15. No other online music store currently offers songs by the famous group and, according to sources, Apple Corps will only allow iTunes to offer the coveted songs. Despite its single-digit share of the personal computer market, early comments by analysts anticipate the takeover by Apple Corps will help solidify the dominance of Apple Computer in the rapidly growing online music market. Apple Computer already holds about 30 percent of the MP3 player market as a result of its popular iPod product line.

In addition to the announcement regarding iTunes, Apple Computer announced the May 1 release of a special "flower power" edition of the popular flat screen iMac in honor of the historic event. "In addition to featuring a flower power pattern, the special edition iMac will also include a 23" display—a first for the iMac product line," read an Apple Computer press release. The flower power iMac will sell for $2,499 USD. Aside from the larger screen and flower power design, the flower power iMac will match the specifications of the 20" screen model which currently sells for $2,199 USD. The release states that the first 1,000 people to pre-order the 23" Flower Power iMac will receive a limited edition flower power iPod mini free (the flower power iPod mini will be available for $275 USD beginning May 1). For a short time in 2001, Apple offered a "flower power" version of the popular, but now discontinued, CRT-based iMac.

When asked why Apple would revive the flower power design, Jobs shrugged and said, "Ringo and Paul just think it's groovy!"