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Did Dr. Dre’s drinking possibly cost him his deal with Apple?

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The media recently reported that Dr Dre was going to be the richest man in all of hip-hop.  It was revealed that he would sell his Beats by Dre brand to Apple for $3.2 billion dollars.  This was set to be the biggest deal ever made in hip-hop history.

But then, there were reports that Dre’s decision to brag about the deal on a video with Tyrese may end up costing him hundreds of millions of dollars, if not the entire deal itself.  There aren’t many buyers as big as Apple, and this might be a doozy.

If you watch the video (below), you can see Tyrese talking about his friend Dre being “drunk off Heinekens,” which might account for the loud and excitable behavior among the men in the studio.  Social media can be a terrible thing when you get on twitter while you’re drunk.

So, based on Tyrese’s words, it looks like Dre’s drinking and tweeting might have got him into a little bit of trouble.  Take a look at the video.

Here’s a comment on the issue from Finance Professor Dr. Boyce Watkins:
“It might not seem like a big deal for him to make one video.  But the problem is that, similar to Tiger Woods and Oprah Winfrey, a great percentage of the value of this brand is based on the image of one human being.  So, given that Apple is spending this kind of money, they are probably already squeamish that something could come out that might harm Dr Dre’s ‘street cred,’ which has convinced millions of people to spend their last dollar on some overpriced headphones.  If Dr. Dre were to suddenly be seen as some kind of lame dude, the market value of this company would plummet the same way things crumbled with Tiger Woods.  In other words, Dre shouldn’t let himself be recorded while he’s drunk.  He could end up looking like Donald Sterling.”

 

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James

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