Dr. Dre and Jimmy Iovine made Hip-Hop history nearly ten years ago with a landmark deal that made The Chronic producer announce himself as Hip-Hop’s first billionaire. However, his premature announcement reportedly cost him $200 million and the ability to officially declare himself a billionaire.
Apple’s 2014 acquisition of Jimmy Iovine and Dr. Dre’s Beats Electronics was almost in jeopardy after Tyrese posted a Facebook video of Dr. Dre talking about the deal. In New York Times reporter Tripp Mickle’s new book, After Steve: How Apple Became a Trillion-Dollar Company and Lost Its Soul, it was revealed that the original deal was worth $3.2 billion prior to Tyrese and Dr. Dre’s video.
“It was a sum that Iovine and Dre could barely fathom,” Mickle wrote. “As the lawyers worked through final details, Iovine summoned the leadership team of Beats to his home near Beverly Hills. He told everyone that they were on the cusp of finalizing a massive deal. The only thing that could spoil it would be for word of the deal to leak.”
Despite Iovine’s warning, the Interscope Records co-founder was alerted by Diddy the following morning that a video of Tyrese and Dr. Dre talking about the deal was circulating across the internet.
“At 2:00 a.m., Iovine got a call from Puff Daddy, who was screaming that Dre and Tyrese, a rapper, were talking about the deal in a Facebook video,” the book read. “Iovine pulled up the video and cringed as he saw Tyrese bragging about being drunk on Heineken in a recording studio.”
Iovine was reportedly sent into a panic, fearing the deal might be killed as a result of the premature announcement. Apple CEO Tim Cook summoned Dre and Iovine to Apple’s headquarters and said he wasn’t going to kill the deal although he was disappointed in the video. However, Cook used the video as leverage to shave $200 million off the deal.
It’s important to note that at the time of the deal, it was suggested that the price getting reduced from $3.2 billion to $3 billion was due to Beats Music’s low subscriber count.
For more, click the link below and look above to view Dr. Dre and Tyrese’s video.