How does Dr Dre only own about 25% of Beats when it was built off his name?

[old_timer]

you don't know anything about dr. dre's exact role in "beats"
you don't know about the design patents
you don't know about monster's role in getting them to market
or the venture capitalists
but you want to repeatedly disagree with people who said it was basically putting his name on the product?

 

[winb83]

Same with Beats

when you go to Beats website it list two people as co-founders and that's it.

 

[KinksandCoils]

I'm not impressed with the sound quality.

 

[Rawtid]

Another little known fact, they went to Quincy Jones first and he rejected it. They then went to Jimmy Iovine who hooked them up with Dre

Lmmfao at Quincy Jones headphones!! I'm not saying Quincy isn't a boss but lmao nonetheless. Quincy beats.

 

[the artist known az]

Lmmfao at Quincy Jones headphones!! I'm not saying Quincy isn't a boss but lmao nonetheless. Quincy beats.

If that would have happened, it wouldn't have been as popular. It's fitting about that connection because people call Dr. Dre the Quincy Jones of hip hop

 

[HookersandIceCream]

when you go to Beats website it list two people as co-founders and that's it.

Everyone is posting things that refute that. Why are you so dense?

 

[Canon]

well on a positive note, whenever I get my next iphone in 2015, it'll certainly have better headphones than the ones it currently comes with

nope

 

[Robbie3000]

mark zuckerberg only owns 25% of facebook

michael dell owns 12 percent of dell

These Coli MBAs are dumb as fukk. There is no talking sense to them.

Obviously they don't understand how startups work.

 

[Kasino416]

Im really surprised how dumb (too harsh), uninformed, most people are when it comes to business. I highly suggest many of you enrol in an introductory business class at your local college, or surf investopedia for the day.

Co-founders of companies do start off with 100% ownership, however their shares diminish as the venture goes into the rapid growth stage, where cash infusions are critical. Zuckerberg obviously at one point owned the major of FB, but once they got to the rapid growth stage, they traded equity stakes for cash injections to goldman sachs and other high profile investors. Banks won't loan money to risky ventures, especially tech, so, giving up ownership to continue to grow the business. Would you rather have 80% of something worth $1,000,000, or 30% of something worth $10,000,000?

ownership has nothing to do with voting, as the corporate structure of a firm can be created with different share classes. E.g. Frank Stronach, the founder of Magna International, had shares in which each preferred class shared, gave him 10 votes. Therefore, his voting power allowed him to sell common class shares to the public, which still controlling the company.

Some people went as far as to mention Michael Dell and bill Gates ownerships in their respective companies? How do you think they became billionaires? Clearly by selling shares over the decades in which they've been in operations. I can go on, but its pointless

 

[kermit da hustla]

Are people really this stupid?



And even if he owned everything and got a trillion dollars
You are not going to see a cent.

 

[TELL ME YA CHEESIN FAM?]

yall copped Beats By Bruce Lee anyway..fukk u care?

 

[Malik]

My god....yall nikkas sound so stupid sometime I hope you don't say things like this in public

No different than Mark Zuckerberg only owning 24% of Facebook when the company was his idea (sort of ). You need people to invest in your company. You need talented people around you in the beginning to help you build your company. All of that comes at a cost.

 

[HookersandIceCream]

[QUOTE="Kasino416, post: 8400711, member: 3266"]Im really surprised how dumb (too harsh), uninformed, most people are when it comes to business. I highly suggest many of you enrol in an introductory business class at your local college, or surf investopedia for the day.

Co-founders of companies do start off with 100% ownership, however their shares diminish as the venture goes into the rapid growth stage, where cash infusions are critical. Zuckerberg obviously at one point owned the major of FB, but once they got to the rapid growth stage, they traded equity stakes for cash injections to goldman sachs and other high profile investors. Banks won't loan money to risky ventures, especially tech, so, giving up ownership to continue to grow the business. Would you rather have 80% of something worth $1,000,000, or 30% of something worth $10,000,000?

ownership has nothing to do with voting, as the corporate structure of a firm can be created with different share classes. E.g. Frank Stronach, the founder of Magna International, had shares in which each preferred class shared, gave him 10 votes. Therefore, his voting power allowed him to sell common class shares to the public, which still controlling the company.

Some people went as far as to mention Michael Dell and bill Gates ownerships in their respective companies? How do you think they became billionaires? Clearly by selling shares over the decades in which they've been in operations. I can go on, but its pointless [/QUOTE]



You completely missed what they were trying to say

 

[Malik]

really? I thought Mark owned 51%? so the board could never over throw him. * Yes I'm too lazy to look it up*

voting shares and equity (preferred/common stock) shares are two different things

Zuckerberg owns 24% of Facebook stock, but controls 51% of the board (voting shares). He has majority vote. So none of other boardmembers can toss him out of his company like Apple did Steve Jobs. For example, the Ford Family owns 2% of Ford Motors but, they have 40% of the voting power. They can be overruled but, for the most part, damn near every major board decision will have to go through them.

 

[Momentum]

my guess is dre didn't invest any capital or take any risk to get the company off the ground. 25% is quite a large share for someone who really didn't do much at all when it comes to creating a product.

Dre actually made out HUGE to get 25% with no capital risk at all.

1/4 of $3.5B for my name and input?! Where do I sign up?!