Dr. Dre and Jimmy Iovine made Hip-Hop history nearly 10 years ago when they signed a groundbreaking agreement that made The Chronic producer the first billionaire in the genre. However, his hasty declaration is said to have lost him $200 million and the right to call himself a billionaire. After Tyrese posted a Facebook video of Dr. Dre discussing the deal, Apple's 2014 acquisition of Jimmy Iovine and Dr. Dre's Beats Electronics was almost jeopardized. The initial transaction was worth $3.2 billion prior to Tyrese and Dr. Dre's video, according to New York Times reporter Tripp Mickle's new book, After Steve: How Apple Became a Trillion-Dollar Company and Lost Its Soul. Check out the Clip below of Dr. Dre and Tyrese breaking the news about the new deal. “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, Diddy informed the Interscope Records co-founder the next morning that a video of Tyrese and Dr. Dre discussing the agreement was circulating on 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 said to be in a panic, fearful that the purchase might be jeopardized as a result of the early announcement. Despite his disappointment with the video, Apple CEO Tim Cook invited Dre and Iovine to Apple's offices and stated that he would not cancel the partnership. Cook, on the other hand, used the footage to slash $200 million off the agreement. It's worth noting that the price was reportedly dropped from $3.2 billion to $3 billion due to Beats Music's low subscriber base at the time of the transaction.
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