A Famous singer Dr. Dre leaked Apple's acquisition of Beats deal a new book shows how premature celebrations cost the rapper $200 million, and nearly ended the deal. Tripp Mickle's new book explores how the ill-timed celebration of a $3 billion acquisition in 2014 reduced spending for Dr. Dre and Beats employees.
Chapter 10 of After Steve: How Apple Became a Trillion-Dollar Company and Lost its Soul describes Apple's entry into music streaming in the early 2010s. After a tough persuasion, Beats executive, artist, and longtime friend of entrepreneur Dr. Dre Jimmy Iovine managed to get Apple CEO Tim Cook to agree to buy Beats Music and Beats Electronics.
Despite resistance from Apple employees, the company agreed to an initial price well above $3 billion. Iovine told his team at Beats to stay absolutely silent about the deal to avoid the possibility of Apple pulling out.
The next day, Iovine got a call from fellow artist Puff Daddy, alerting him of a video posted to fellow musician Tyrese Gibson's Facebook. The video shows Dr. Dre prematurely celebrating the deal, calling himself "hip-hop's first billionaire.
When news of the video reached Cook, both Iovine and Dr. Dre were called to Apple headquarters. Cook was reportedly disappointed but remained calm and assured the pair that Apple's determination to buy Beats had not changed.
Mickle noted that if Steve Jobs were at the helm, he would not likely have handled the situation that way. However, Cook used the leak as leverage to cut $200 million from the purchase price. Upon completion of the transaction, Dr. Dre's net worth reached $1 billion.
Apple acquired Beats Music and Beats Electronics in 2014, which became Apple Music, Beats 1 radio station, and various Beats products that support AirPlay and Lightning connector charging under the Cupertino tech banner.
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