Dr. Dre’s “Billionaire” Comments Could Complicate Apple’s Purchase of Beats Electronics

    Dr. Dre was seen in a video released by Tyrese stating that he is “the first billionaire in Hip Hop” last night (May 8) during what appears to be a celebration of Apple’s rumored acquisition of Beats Electronics. While the Financial Times reported that Apple would acquire the company for $3.2 billion, neither electronics powerhouse has confirmed the transaction. Since the deal has yet to be announced officially, does Dr. Dre’s statement potentially jeopardize confidentiality agreements tied to the multibillion-dollar deal?

    To shed light on whether Dr. Dre’s comment broke standard confidentiality agreements, HipHopDX asked White, Weld & Co Securities Managing Director, Corey Davis for his expert opinion.

    Mr. Davis says that, “While there is a large amount of speculation in the media about a potential deal with Apple and Beats Electronics, there has yet to be any direct confirmation from the parties involved. I reviewed the video of Tyrese and Dr. Dre talking about the ‘first hip hop billionaire’ and changing the Forbes list. A viewer could infer from the media speculation that Dre is referring to his newly found wealth as a result of the rumored deal.

    “The answer to your question regarding whether or not this ‘statement’ breaks any confidentiality clauses falls into a ‘grey’ area,” Davis says. He continues:

    “There are ethics, there are morals and then there is the law. While I am not a lawyer, one could argue that he didn’t break any laws because (i) even without a deal, the company now has an implied value of $3.2 billion (or more); and (ii) neither Dre or Tyrese mention Apple. I am sure their lawyers aren’t pleased about the video given that it has been removed from Tyrese’s Facebook page.

    “Finally, as a privately held company, any leaks of a deal will not cause the deal price to go up—with the exception that it might entice new bidders to come to the fore. However, if the bankers did their job, you would expect all of the likely buyers to have already been contacted. In fact, their lapse in judgment could have an unintended consequence that could cause the deal to collapse. If investors think a deal between Apple and Beats Electronics doesn’t make sense, they could sell Apple stock causing the share price to decline—sending a strong message to Apple management that they don’t approve. If the deal hasn’t been inked, it could cause management to rethink their decision.” 

    Mr. Davis is a respected executive and strategic advisor with over 18 years of experience. Throughout his career, Mr. Davis has advised on over $14 billion of M&A and capital raising transactions for his clients. Prior to joining White, Weld & Co. Mr. Davis founded Barrington Capital Advisors, LLC, a research and advisory practice where he advised financial institutions, hedge funds and other small to medium sized businesses. Previously, he was a Vice President of both Business Development and Institutional Sales at The Receivables Exchange, a Bain Capital Ventures backed company. Prior to that, he was an investment banker in the Financial Institutions practice at Banc of America Securities, Credit Suisse First Boston (through its acquisition of Donaldson, Lufkin & Jenrette) and J.P. Morgan Securities.

    View the video of Tyrese and Dr. Dre presumably celebrating the rumored transaction between Apple and Beats Electronics below.

    RELATED: 3 Top Secret Weapons Apple Gets Buying Beats By Dre Listed By TheStreet

    114 thoughts on “Dr. Dre’s “Billionaire” Comments Could Complicate Apple’s Purchase of Beats Electronics

    1. Makes no sense. If Dr.Dre’s comments breaks confidentiality, then so do the sources who reported on this story in the first place.

      1. See young man this is why you have to stay in school, eat your spinach and refrain from wearing dresses and saying ‘turn up’ and throwing signs claiming you are a ganstA.

    2. LOL niggas lost. couldnt keep your fucking mouth shut for a few more days LOL

      good job Tyrese!

    3. Dre is a winner for 2014, he been eating off Em’s album and he fired 50 Cent, became a millionaire and has Kendrick in the chamber.

      1. @Anon-2

        Are you serious?! Kendrick is signed directly to Dre and Aftermath while 50 was signed to Eminem and Shady/Aftermath. Plus Kendrick is from Dr Dre’s city and state and coast so his success is special to Dre. Kendrick is a real HipHop artist who will have longevity, 50 was just hype and gimmick.

    4. This story is speculation built on hearsay; dude in this article isn’t even a lawyer, speculating on a hypothetical clause in an agreement he hasn’t seen. FOH.

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    6. Experts that dont know sh!t about the situation internally.
      everything is an assumption at this point.
      i need to work for these people as well. i can make up stories as well…

    7. first they didn’t say a “rumor came out two weeks ago”, they said the Forbes list just came out two weeks ago…

      no mention of Apple, or Dre selling anything.. I highly doubt they broke any CA’s… still, it was dumb to post lol

      congrats to Dre if/WHEN it goes through.

    8. Justin Hunt, your momma’s vaginal complications which led to major concussions in your head during birth affected your ability to comprehend. I am a millionaire!!!!!!

    9. THEY SHOULDA NEVER GAVE YOU NIGGAS MONEY!!!!

      …..HA!!!! JIMMY READY TO CRACK THE WHIP ON DR. KUNTA IF HE FUCKS UP THIS DEAL!!!! SILLY NEGRO!!!!

      DON’T HATE ON MY OPINION!!!!

      1. He’s getting 1.2 billion of the 3.2, and already has a net worth of over 500 million…so yeah. He will be a billionaire.

    10. them rich white folks will be looking at this vid like damn why we giving these gang bangers so much money lool

    11. What is this amatuer hour? This is why you dont give blackies money. Grow up dre you are like 60 years old fool.

    12. No where in the video did he say “WHY” he was about to be a billionaire so I don’t see the problem.

    13. It was stupid and not very classy of dre and tyrese though. As soon as i saw it i thought to myself is this dumb ass really doing this before everything is signed and done. I would have kept my mouth shut until it was announced officially. Also with the jealousy in this world from people who are middle class and poor it wasnt that classy of him to make a video bragging about his money. But whatever, now he can get a pure platinum car and house and blow his money like a welfare check recepient.

      1. you wouldn’t have done sh*t because your crab ass mentality would never have you in that position ya nose up in the air pussy

    14. so they gonna blame dre for not being quiet when the news was posted by media before that video

      we got the inmates running the asylum out here, smmfgdh

      1. Wow, you must be angry and white. There would be NO Eminem without Dre. Seems you’ve forgotten about Dre. Westcoast.

      2. Are you all that stupid? Yeah Dre wouldn’t be where is is now without signing em, 50 etc, but he wouldn’t be done for good. And em, 50 etc probably wouldn’t be where they were now if it wasn’t for Dre, do you think Dre signed them because he liked them? Maybe he did like them, but the reason he signed them was for business, and they’re only going to be good for his business if they became successful.

        Dre singed dudes so they would be successful which would be good for business, the dudes he signed became successful and had a career that they might never have had without the help, this success keeps Dre relevant and keeps him payed.

        They help each other, but dre doesn’t have to be thankful for the other guys, there would’ve been other people to sign.

      3. dres has signed like 40 niggas over the years who never got a release date who got their albums shelved

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    16. Apple won’t go through with it. Beats are the biggest wanksta hipster headphones ever… I want Dre to be a billionaire but I have my doubts

    17. Dre is high if he thinks this deal would be a billionaire. What an idiot. Dude maybe has 10% at the most

      1. 10% fool you crazy! Him and Jimmy make a billion off this deal. He just made $250 million for himself by the end of last year off his percentage he sold than later got it back now this. POWER MOVES so stop hating!

      2. Dre and Iovine formed the company together…and together they own 75% of the company…split that and its like 37.5% over a billi before taxes plus whatever else hes worth

    18. Black peeps acting like monkeys…you did not hear overnight billionaires like Mark Zuckerberg, WhatsUp owners, and many others act like this…

    19. Those hoping this deal fails are haters. This is going through. And as far as Dre and Tyrese boasting about a billi…

      To quote Jay Electronica- The devil, the haters, the bloggers, the papers, the labels, they labeled me
      But they can’t relate to our struggle, my ni$&A, we came up from slavery..

      Bompton to Billions if one does it we all can do it. Let the penny counters argue about after taxes stuff. The point is the word billionaire is associated with a person I can relate to.

    20. This will actually take Dr dre to 800k after capital gains tax. Check Forbes or try do the math for yourself.. Anyway much success to Dr Dre he does deserve it , he worked hard out and is a hip hop pioneer… He deserves it way more than gay z of poof daddy.

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      1. Of course he’ll get paid. This deal will get done with this video out. You have no clue about merger and accusations until your read this article…

        Stay in the corner quietly please and use the time to educate yourself about business, law and economics.

    23. Dre was never getting a billion nothing the over priced head phones wasnt moving like they wanted anyway no Ceo at apple was looking at some grainy video of Dre and tyrese anyway now they looking over them inflated numbers of sales that owners of the head phones gave apple as they say the jig is up, dre was being paid for his name attached to the product and would have gotton a percentage and trust it wasnt near the dollar amount he was spitting

      1. Dre is more than just name and face. Do the research. Him and Jimmy Iovine started it together in ’07 and own 75% of the companies stake. The other 25% was owned by HTC till The Carlylr Group took over HTC’s share as the minority investor.

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    26. Well if “Financial Times reported that Apple would acquire the company for $3.2 billion”, why are we talking about Dre? Which came first?

    27. WHY DIDNT EMINEM MAKE SLIM SHADY LP 2 BEFORE DOING MMLP2? BECAUSE IT WAS JUST A CASH GRAB!!!! HE WENT WITH THE MOST POPULAR BRAND!!!! OPEN YOUR EYEXZ!!! OPEN YOUR EYEXZ!!! OPEN YOUR EYEXZ!!!

    28. fuck hova nigga you better pop urself
      roll the dice against me u better slot urself
      i done overtook the roc myself
      send my bloods at u cant get the docs for help
      il still kidnapp ur wifey and daughrt
      bitch i built cash money from the bricks of my mortar
      im finna take all you pricks to the slaughter
      and i aint droppin a verse for less than a qauter

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    30. i knew that was a mistake as soon as i saw the video. it seemed very uncharacteristic of dre. he is usually very covert about such things.

    31. Ah, yeah. Here’s how it works. If I’m negotiating with you to buy something and part of my off is that you keep your mouth shut or the deal is off, and you can’t keep your mouth shut, guess what? Oh, and I don’t put into the agreement that I have to keep my mouths shut, that’s why I need you to do so. Get it?

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