While Dr Dre has already declared himself “the first billionaire in hip-hop” — which as Music Feeds reported yesterday, may not be entirely accurate — with a reported deal between Apple and Dre’s Beats Electronics not yet officially announced, could Dre’s braggadocio complicate the purchase?
To answer the question of whether Dre’s, admittedly vague, statement could violate confidentiality agreements tied to the multibillion-dollar deal, HipHopDX spoke to Weld & Co Securities Managing Director Corey Davis, who has over 18 years of experience with such acquisitions.
“While there is a large amount of speculation in the media about a potential deal… there has yet to be any direct confirmation from the parties involved,” explains Davis. “I reviewed the video of Tyrese and Dr. Dre talking about the ‘first hip-hop billionaire’… A viewer could infer from the media speculation that Dre is referring to his newly found wealth as a result of the rumoured deal.”
Davis says that whether Dre’s “statement” breaks any contract clauses “falls into a ‘grey’ area,” adding, “There are ethics, there are morals and then there is the law.” However, he says that since neither Dre nor Tyrese mention Apple, the video most likely did not break any laws, but that “their lawyers aren’t pleased about the video given that it has been removed from Tyrese’s Facebook.”
“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,” Davis continues. “However, if the bankers did their job, you would expect all of the likely buyers to have already been contacted.”
“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 doesn’t make sense, they could sell Apple stock causing the share price to decline—sending a strong message to management that they don’t approve. If the deal hasn’t been inked, it could cause management to rethink their decision.”
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Dr Dre's "Billionaire" Video Could Put Apple Deal In Jeopardy - Music Feeds
Watch: Dr Dre Declares Himself “The First Billionaire In Hip-Hop”