Leaked Dr. Dre video in 2014 almost put the deal between Apple and Beats in jeopardy

When Apple confirmed that it was acquiring Beats for $3 billion in 2014, the deal became news all over the world. However, Tripp Mickle’s book “After Steve” has now revealed that the deal between the two companies was almost put in jeopardy after a video of Dr. Dre was leaked on the web.

Back in 2014, before both companies confirmed the acquisition, there were multiple rumors about the negotiations. Apple’s obsession with secrecy means that no one can speak about the acquisition. But as detailed in a chapter of Mickle’s book (via iMore), the deal had been pretty much confirmed by a video.

Beats founder Dr. Dre was featured in a video that featured actor and singer Tyrese Gilbert. He celebrated Dr. Dre’s success as a hip-hop millionaire due to Apple’s purchase of Beats. Jimmy Iovine was also co-founder and CEO of Beats. He received an immediate call from his manager warning him that the incorrectly uploaded video had been posted to Facebook.

After the event, Apple CEO Tim Cook invited Dre & Iovine to Cupertino in private for a conversation. The book says that Cook was “disappointed,” but that he wouldn’t scrap the deal since he was convinced that acquiring Beats was the right thing to do.

Iovine was worried that Cook would endanger the deal. Cook displayed calmness instead of the angry and verbal curses that might have flowed out of Jobs at such a time. Cook told music executives that while he was disappointed in Dre’s outburst on social media, he still believed that Apple had bought Beats.

Even so, there were some consequences. The Beats acquisition was finalized for $200 million less than expected. Although there was speculation at the time that Beats Music subscriptions had lowered the price, Apple paid Beats less after Dr. Dre made a mistake.

Apple has acquired both Beats Electronics and Beats Music. While the company’s headphones are still available from Apple under the Beats brand, Beats Music has been incorporated into Apple Music.

After Steve: How Apple Became a Trillion-Dollar Company and Lost Its Soul revisits Apple’s last decade, just after Steve Jobs stepped down as CEO to take care of his health. For a more in-depth look at the publication, be sure to read 9to5Mac’s review by Zac Hall. The book is now available in stores.