Beats Electronics’ management is about to cash in, as Apple is expected to buy the company for $3.2 billion. While that happens, the CEO of a company that Beats acquired says he was cheated out of millions, according to The Wrap.
In mid-2012, Beats purchased music streaming service MOG. Beats Music was built using some of MOG’s technology. As part of the deal, MOG’s Founder/CEO David Hyman and most of MOG’s employees joined Beats.
David Hyman was supposed to receive 2.5 percent of Daisy LLC’s “currently outstanding equity interests”. The first percent would come after one year of employment, with the rest coming the following months. If the company reached a market value of $500 million or more, Hyman would get 25 percent of the outstanding equity interests. Daisy would eventually become Beats Music.
Hyman was sacked for trying to fire an employee before reaching one year at Beats. He says Beats purposefully fired him to avoid paying him the incentives he was owed.
Hyman is seeking $20 million in damages with interest.
When Nina Ulloa isn’t writing for DMN she’s usually reviewing music or at a show. Follow her on Twitter.