An inside story from a new book reveals how Dr. Dre lost $ 200 million as a result of breaking the Beats and Apple deal. The details are explained in Tripp Mickle’s new book, After Steve: How Apple Became a Trillion-Dollar Company and Lost Its Mind. According to Mickle, Apple’s current CEO, Tim Cook, sees the Beats’ acquisition as a speedy entry into the music streaming business. You like playlists that people have touched. However, Jimmy Iovine believes that both Beats Music and Electronic Music should be sold as a package.
Iovine also told his colleagues at the Beats that the deal was huge but could be broken by a leak. “At 2 am Iovine got a call from Puff Daddy, shouting that Dre and Tyrese, an artist, were talking about the transaction in a Facebook video,” the book said. The popular video now shows Dr. Dre advising Forbes to update his rich list to become the first billionaire in hip-hop. According to the book, Iovine was shocked when he saw Dr. Dre leaking news of the Beats and Apple deal.
Mickle relates: “When the video reached Cook, he called Iovine and Dre to Cupertino. “He invited them into a conference room for private communication. Iovine worried and feared that Cook would close the deal. Instead, Cook told music officials he was disappointed the deal had been leaked. Cook told them he wanted Dr. Dre’s social media campaign not to happen but said he did not shake his convictions. In the days that followed, Cook demanded a restructuring of the business. Apple received an estimated $ 200 million from its final charge.
“Reducing led staff at the Beats to say that Apple has given Dre enough hair to make sure he does not become a billionaire-hip-hop,” Mickle reports. The $ 200 million boom from the fund was reported by the New York Post, but is thought to be due to the small number of Beats Music subscribers. Now we know the truth – do not count your chickens before they count.