Everyone knows about the deal Dr. Dre and Jimmy Iovine's headphone company, Beats By Dre is rumored to be doing with Apple; the $3.2 million acquisition deal. The news came out a couple of days ago, but it was said to be still in the talks. Until a video hit the Internet two days ago, of Tyrese and Dre in the studio celebrating Dre's new billionaire status. Since the deal has not officially been inked, business experts are saying Dre might have broken confidentiality agreement between Beats By Dre (the company) and Apple.
HipHopDX got with a business expert/strategic adviser, Corey Davis (MD of White, Weld & Co. Securities), to find out if Dre did break the confidential agreement between he and Apple. Read what he had to say below.
“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,”
Mr. Davis went on to say he feels Dre. didn't break any laws.
HipHopDX got with a business expert/strategic adviser, Corey Davis (MD of White, Weld & Co. Securities), to find out if Dre did break the confidential agreement between he and Apple. Read what he had to say below.
“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,”
Mr. Davis went on to say he feels Dre. didn't break any laws.
“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.”
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