Big $$$: Dr. Dre & Jimmy Iovine Could Make Big Bucks With Apple Stock
Dr. Dre and Interscope Records’ Jimmy Iovine have had great success in the music industry since the mid-90s. But, now there’s more to their business partnership than selling records. With the creation of Beats By Dre headphones, the two have amassed incredible wealth and it looks like they’re about to make even more.
On Payday After Another:
Back in 2014, Beats Electronics was purchased by Apple for a whopping $2.6 billion. In addition to the massive purchase, Dre and Iovine were both given $400 million in stock after closing the deal. Now, they could be in line to make even more money. Variety recently published a report projecting the duo could possibly profit more than $700 million when the stock vests in August.
Variety are using the metric of a 19% average rise over three-and-a-quarter years, calculating the stock would be worth roughly US$700 million today. Continuing this line of thinking, and assuming my calculator is working correctly, and my year nine compound interest skills are sound, this will rise to over US$800 million by August.
The latest news follows the Beats By Dre lawsuit against Monster. It has been reported that Beats was rewarded $7,916,201.64 as opposed to the $360,000 Monster initially claimed was owed. The jury reportedly deliberated for only 20 minutes before reaching the verdict, reports Digital Trends. Monster was ordered to pay $8 million for failing to pay Beats as part of a contractual distribution agreement. The lawsuit alleges, “Despite the considerable sums of money that Monster earned through its contractual relationships with Beats, and despite Beats’ numerous requests to Monster that it comply with the distribution agreement by paying the sums owed to Beats for Beats products it sold, Monster has failed to live up to its contractual promises by failing to pay Beats some $95 million owed under the distribution agreement, as determined by the PWC audit.”
Right now, it looks like the odds are definitely in Dre and Iovine’s favor and 2018 could be a very big year in business.