Has Dr. Dre’s drunken boast cost his company $3.2 billion?

“We haven’t heard anything official about its supposed $3.2 billion purchase of Beats from Apple yet and now Billboard reports there’s a good reason for that,” Brad Reed reports for BGR.

“According to Billboard’s sources, Apple was not at all happy about a video posted by actor Tyrese Gibson where a couple of weeks ago in which Beats founder and hip-hop legend Dr. Dre boasts about becoming ‘the first billionaire in hip-hop,'” Reed reports. “Apple was also probably not happy to hear that Gibson said that Dre was ‘drunk off of Heinekens’ in the video, which was posted on Gibson’s Facebook page right after news broke that Apple would be buying Beats for $3.2 billion.”

Read more in the full article here.

“Apparently, the Apple family near imploded with outrage when that video went up on Facebook of an ‘excited’ Dr. Dre with R&B singer/former Coca Cola pin-up Tyrese,” Yinka Adegoke reports for Billboard. “In the video they share, in language perhaps unsuitable for a family blog, how Dre will be hip-hop’s first billionaire and other nice things about Compton.”

“People often forget that despite Apple being this company that makes sexy products, with sexy profit margins, and sexy retail outlets…it is not in fact a very sexy company,” Adegoke reports. “It is a conservative company, particularly without the leadership of its guiding light Steve Jobs who would shake things up massively on a daily basis. This is not the kind of thing Apple is used to.”

Read more in the full article here.

MacDailyNews Take: As we wrote when the video first came to light: “Historically, the best way to lock up a deal with Apple is to make a YouTube video about it and prematurely blast it all over online. Apple absolutely loves that sort of stuff.”

Warning, the following video contains profanity and is Not Safe For Work (NSFW), depending on where you work:

Related article:
Dr. Dre boasts of Apple-Beats deal in YouTube video, on Facebook – May 9, 2014

115 Comments

      1. Yeah if I wuz Apple the deal would have been cancelled the next minute after this video went out and a brief thanks to the tech gods for missing that Dre bullet. The desire to pull that ‘billion dollar hip-hop jerk” rug too overwhelming. (Can’t wait to see the look on his face when he finds out and becomes the poster child for STFU.) Why is it these guys are their own worst enemies?

        1. Dr. Dre’s over the top demeanor has never seemed to me to a be a good fit for Apple. Even if the deal goes through, I seriously doubt the guy will hold any position of importance and will likely be history within 6 months.

          IOW, STFU will be in his contract and he’ll violate those conditions very quickly.

        2. Lessons to be learned:
          1. Never post ANY shit for public viewing on social media,
          whether it is (You Tube, Facebook, My Face, Twitter,
          Instagram etc).
          2. Never send an angry email. They’ll both come back and bite
          you in the Ass!

          However, it keeps happening over and over and over again.
          It never ceases to amaze me how people keep making asses of themselves posting crap on Facebook.
          i don’t think Apple will endorse this deal, if ever there was one. It is probably dead in the water already.

    1. +1 lets forget about this deal…..never trust a rapper. Evidence on YouTube. What a loser…..rappers are about money, drugs and pussies….

  1. He blew it big time.

    What an idiot – keep you’re mouth shut Dre until the cash is in the bank.

    If the deal is dead because of this then this has hot to go down in history as the best example ever of screwing up a deal.

    1. Yes. Secrecy of Apple’s deals is paramount, and Dre no doubt violated a Term Sheet agreement to keep everything secret.

      No Apple would worry about the next time Dre decides to blab off when he’s on his favorite chemical.

    1. Absolutely wrong. He doesn’t need to be professional here, he’s hanging out with friends. People are allowed to drink, they’re allowed to swear, they’re allowed to talk shit with friends. What screwed this up was a friend of his taking the video and making it public. That was a massive screwup.

      1. Except that these things DO leak. Often. It’s not as though in today’s Internet world people aren’t aware of the ramifications and disasters that can ensue from making video’s they shouldn’t have made. It’s call “tempting the fates.” Also to cast these kinds of persona’s publicly so obnoxiously only makes people really hate you regardless of race, creed or color.

            1. Class in the context I brought it up under “race, color and class” is socio-economic class. Apple class means integrity, honor, execution & quality leadership. Interesting you can’t recognize the difference.

            2. It’s the same root Peter. You didn’t know that? The people of the upper class were seen to have such qualities that class itself became a noun one could apply. It’s inherently a term that means the dominant group’s norms are universal norms of appropriate behavior. Look, the guy’s a hip-hop artist who enjoys hanging out with friends, laughing, celebrating great success from humble roots and, ohmygod, using a full range of expressive emotive language. Everything about this is inherently fine. If Apple doesn’t want a hip-hop artist they shouldn’t hire one. But it’s not like he’s burning old ladies in the street. It’s not even his video. As soon as he discovered it was online he had it removed. I see nothing wrong here.

            3. Except “class” is now used in two different context. Socio-economic class & class behavior. Someone poor can still act “classy” and vice versa. Doesn’t matter what the root was so much as how it’s used now to present two different concepts that can overlap.

            4. Your argument is misplaced. This has nothing to do with how he acts in his personal life. It has everything to do with the fact that he was openly discussing and bragging about secret negotiations, which undoubtedly involved non-disclosure agreements. This is in addition to the violation of SEC rules which require such an acquisition to be announced to the general public. Dre telling his friends gives them access to confidential information that would provide an unfair advantage in the stock exchange. This is a serious offense that should prompt a serious response from Apple. Jobs walked away from deals for far more trivial violations than this.

            5. Good point. Maybe the discussion shouldn’t be about how aggravated Apple might or might not be killing the deal. The legal position Apple is now in would make it impossible for them to go forward with the deal, no matter how great on opportunity they thought it be, or how willing to put up with dumb.

              Wonder how many WWDC keynote segments are being rewritten?

            6. @ Radagast – It surely DOES apply. Class and character of anyone is how you act when no one is looking public or private. How you act in your personal life can certainly be reflected in your professional one. Once you demonstrate you’re a loose cannon who can’t control himself or his media you are dead to a corporation like Apple who prides themselves on just that control. I’m sure this is what Apple was most aghast over. Dre should have been especially sensitive to that if he had an ounce of intelligence. But his low class side tripped him up. Many rappers and hip-hop artists are low class but wealthy individuals (as evident by regular headlines regarding misconduct). Wealth is no indicator of high class behavior. Sports figures also point this fact out and underline it.

            7. Peterblood, my response was solely intended to refute Higo’s assertion that Dr. Dre did nothing wrong. However, Dre’s character and personality have no bearing on whether Apple is willing to acquire Beats. His lack of discretion and violation of secrecy does.

              I would agree that Dre would not integrate well with the Apple culture, but surely the executives realize this. It would be a simple matter to require a buyout of Dre’s shares as part of the deal, effectively forcing him and Apple to part ways. The fact that one is willing to negotiate with someone does not necessarily marry them to that person upon completion of the deal. I personally suspect that Apple had no desire to place Dr. Dre within the company after the acquisition. Violating agreements is another matter entirely and one that merits a cease of negotiations on principle alone if for no other reason.

            8. I appreciate your POV but aren’t character and personality intertwined with a lack of discretion and knowing how to keep secrets? I don’t know how you can separate the two. All part of the same consciousness and lack of discipline.

              Yep if the deal goes through Dre will get some bucks but probably have nothing to do with Apple after that. Interesting you wonder if he wasn’t already under some kind of negotiations NDA and you would think Apple would preface their acquisition interest at the very beginning by telling the other party “Don’t… talk… about.. this.. or… the…deal… is… off.” Violate an NDA and all kinds of hell will result where Apple is concerned.

            9. Sure, at the end of the day all of it is relevant to whether or not Apple would want Dr. Dre as a member of their team. I just don’t think the fact that he is Dr. Dre should have precluded Apple from initiating the talks. I assume that apple conducts practically all negotiations and business transactions under NDAs, so running one’s mouth about an ongoing negotiation is at best foolish.

          1. Exactly. Apple is known for class, minimalism and restraint. OTOH, Dr. Dre is a classless, over-the-top buffoon. If he didn’t sink the deal right there, he’ll be gone within 6 months. He just doesn’t fit into Apple’s corporate culture.

            1. As Doc Brown would say “You’ll have to forgive the crudity of this Dr. Dre model!” Agreed. Not a fit regardless of (questionable) music chops. Apple can’t be that desperate to tarnish it’s image with such trashy types.

            2. Which begs the question does everyone making hip hop, etc. music today have to use the same crappy weak Marie Callendar pie tin percussive snare sound and transparently tired production tricks? No imagination with a lot of what plays as Top 40 music today. Genuine dreck from musical morons.

      2. What’s rarely discussed, and SHOULD always be mentioned, is that this was a violation of privacy. Also, if Dre didn’t know he was being recorded, a violation of California’s “all party” law. Not that kind of party, all parties to a conversation must be informed that it is being recorded.

      3. As a high profile employee of Apple, he’s going to have to learn to act with some dignity anytime a camera might be present. I don’t think he’s capable.

      4. No, you’re not allowed to talk shit with friends about confidential deals. Common sense to keep quiet. Dre is an idiot. A wealthy idiot even without this deal, but an idiot nonetheless.

      5. Actually, he would more than likely been under an NDA during talks like this. An NDA means you don’t disclose, not just to media but also to your buddies as they could then use this information for insider trading. I would not let him anywhere near a board room or any confidential product development, this makes him useless to Apple.

  2. If apple really values beats then they could care less about Dre acts it what he says. If they think that beats adds value to their brand then they will pursue the deal, if not, they won’t, period…

    1. Wrong. Dre has proven himself not a team player who gets loaded and can’t keep his mouth shut. Apple has his demo tape to prove it. (OBTW, I’d bet there was more than Heinekens involved here) They also have a history of no tolerance for flaky partners. Who needs that? Why risk future acting out by this fool? The deal is dead.

      Ultimately, it is brains and connections Apple is after, not the rights to flashy but crappy hardware. Maybe Apple will just hire Iovine directly. Dre can go make videos with his dim-witted friends.

      1. Apple is run by morons if they were going to spent 3.2 billion dollars for nothing more than 2 guys.

        There has to be far more to beats than Dre and Lovine.

  3. AS an Apple shareholder, I would like to extend my appreciation for a job well done to Dr. Dre. At the very least, you just saved Apple several hundred $M. In the best case, you just save Apple $3.2B.

    Again, much appreciated! Crank up the music!

    1. Not a real thug, just a loudmouth. Thugs act in their own self interest, to the detriment of others. Loudmouths rung their mouths to their own detriment. Stop disrespecting thugs.

    2. ed ed ed….you are a person who most no one has heard of outside of this blog. dr. dre is prominent in the music industry as an artist and record producer, tyrese gibson is in several movies that have made him quite a name for himself. To call them a thug is wrong on two accounts. One being that they are not thugs, they make their money in the entertainment industry just like several other hundred people do. Two, that you call them thugs solely because you have either tagged rappers as thugs or you have tagged blacks as thugs…either case both are wrong and you should correct your thinking.

      Of course I should know better to than to get involved with trolls, no matter how much crap or ignorance they spew.

    3. When’s the last time you called a white person a “thug?” You know what word you really wanted to write. You’re a coward and a racist at the same time.

      1. Ironically, the word ‘thug’ is a shortening of ‘thugee’, a criminal secret society from India. Last time I checked, the people of India are of Caucasian descent.

      2. You must be just another Democrat sitting nervously awaiting and looking forward to the next pulling of the hair trigger racist gun. Frankly I feel those who call others racist are the most racist of all since it’s always at the forefront of your minds as an explanation for damn near everything. You water down the meaning to those who truly are racist in the process.

        There are a-holes, thugs, bullies, etc. located in the complete spectrum of the race of human beings. Blacks have no special immunity to being called on for bad behavior and should be like everyone else. Overly sensitive PC-loving liberals can take a flying leap off a steep cliff. You do far more damage than good.

        1. You must be another racist Republican who agrees that what Dre did qualified as him being a thug. He’s a VERY successful businessman and entertainer who got drunk and had the poor judgement to post a video record of his actions. How on Earth is that the action of a thug? You righties are a disgrace to this country.

          1. Plenty of successful businessmen are thugs. That’s how they became successful. Don’t know much about business do you? Just so you know I’m a registered Democrat who doesn’t suffer liberal fools on PC steroids. Unlike you I don’t have preformed opinions based on a party that could give a damn about me or you (neither party actually).

            All ready to judge a book by your standards for it’s apparent cover aren’t you? Those kinda folks are among the most loathsome. I’m also part Native American and a member of the Cherokee Nation. What’s your excuse?

            1. And you are? Obviously no one who possess intelligence. JAT – Just Another Troll. The bullshit I’m sure, if you knew how to express yourself, is all yours. What’s your argument – all business people got to where they are being perfect little angels? GFY loser.

            2. Like I said, you’re full of yourself. And I am in business. Successfully. You however wouldn’t make a pimple on a businessman’s ass. All you know how to do is preach and brag.

            3. You’re a nobody and an imbecile. Please get off this site troll. The only business you do very well in is excessive flatulence and nose booger mining, along with refining obnoxiousness to a fine art.

        2. Honestly, Peeblood, are you suggesting Republicans are not PC-loving? BOTH sides consider themselves politically correct. That’s why they identify so strongly with a political party. Two choices we got. The run-up to each election including the debate process is controlled by the Republicrats. Is that point lost on you? What a lack of finesse in your vision and your thinking…

          1. Political correctness seems to dwell far more in leftist thinking than right I’ve noticed. The actual definition says “Political correctness (adjectivally, politically correct; both forms commonly abbreviated to PC) is a term that refers to enforced language, ideas, or policies that address perceived discrimination against political, social or economical groups (“protected classes”) as defined by the political left.” So you’re wrong.

            Both parties think their politics are the correct view. You kinda spew non sequiturs and stuff out of left/right field. Of course the election process is controlled mostly by the two main parties, what of it? What does that have to do with anything we’re talking about? You could use a little more intelligence and coherence in your thinking.

    4. We all know the only reason why you say “thug” is because you can’t get away with just calling them the N’s anymore. It’s a shame we couldn’t wipe out all you racists fuckers during the Civil War.

      1. No, the actual shame is that we could send them all back when we were done with them. They were only here because machines had not yet been invented. Look what we have now.

        1. Hey, I’m all for sending them back now. If I had Apple’s money I’d buy the one way tickets. Then again, the African continent has enough problems as it is. This comment ought to get the whiny apologists in a tizzy; probably get deleted too.

  4. In spite of all the racial hate, you can’t defend stupidity. Dr Dre is already worst almost a half billion dollars. I can’t understand why he diid this, unless the deal was already signed. Remember the Solaris file system debacle? Let’s hope Tim Cook is not as vindictive as Steve Jobs.

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