Hip-hop manager and cultural commentator Wack 100 recently shared his provocative theory regarding the rumored lawsuit between Drake and Universal Music Group (UMG). Wack suggested that the legal battle may not be as straightforward as it appears, indicating that it may be a calculated financial move to manipulate UMG’s stock. Wack shared his perspective during a discussion, stating,

“I think it’s a play, bro. I don’t even think it’s UMG entirely; I think it’s somebody else pulling the strings. We saw that UMG stock drop recently, and if you pay attention, it could be tied to this situation.”

https://www.youtube.com/watch?v=ac5ZF-kdaf8

Stock Price Manipulation Allegations

According to Wack, UMG’s stock, which is traded in euros, has gone down, dropping from around €24 to €22. According to him, opportunistic investors could purchase large quantities of shares if the stock dips further, perhaps as low as €16.

“If we see a shell company come and buy a gang of it, and then Drake drops the lawsuit, causing the stock to rebound, that would be a whole other level of play,” Wack said.

He continued to describe the situation, emphasizing the potential for a calculated withdrawal of the lawsuit to drive up the stock price.

“Imagine they buy it low, then drop the lawsuit, and suddenly it climbs to $30, $40, or even $70 per share. That’s a big flip.”

The Drake-UMG Dynamic

Drake’s alleged lawsuit remains speculative, but the idea that the rapper is targeting UMG is raising eyebrows. The label’s longstanding relationship with Drake, who has been a cornerstone artist, could be jeopardized by a contentious lawsuit. Wack recognized this complexity, underscoring that Drake likely values his partnership with the music giant and would not take such drastic legal actions lightly.

The idea of Drake targeting UMG is a surprise, despite the speculative details of his alleged lawsuit. A contentious lawsuit against Drake, who has been a cornerstone artist for the label, could pose a threat to their longstanding association. Wack acknowledged this complexity, noting that Drake probably values his partnership with the music giant and would not take such drastic legal measures lightly.

“Drake isn’t reckless,” Wack remarked. “He loves his life and the music industry. Going after UMG would be like biting the hand that feeds him. There’s got to be more to this.”

Pump-and-Dump vs. Tank-and-Buyback

Wack compared traditional pump-and-dump schemes to his proposed ‘tank-and-buyback’ situation.

He entertained the idea that by lowering UMG’s stock value through the lawsuit, certain entities may be able to buy shares at a discount, only to profit later when the stock recovers.

This theory is in line with corporate strategies where companies purchase shares after driving down their value, typically through strategic announcements or external events.

Regulatory Concerns

Potential legal and regulatory implications were also discussed during the conversation. The U.S. Securities and Exchange Commission (SEC) is famous for its vigilant approach to insider trading and stock manipulation.

“If there’s anything shaky about how this lawsuit is handled, the SEC could come knocking,” Wack warned.

He compared high-profile cases like Martha Stewart’s insider trading scandal and stressed the dangers of such maneuvers.

Wack warned that the SEC is not lenient and could result in serious consequences for any irregularities.

A Plausible, Yet Unlikely, Theory

Wack’s theory is interesting, but many think it’s unlikely given the scrutiny that such a move would bring. The relationship between Drake and UMG, coupled with the potential regulatory risks, makes this scenario unlikely. Wack’s comments have caused a conversation to erupt both within the industry and among fans. The complexities of the music business and the potential intersection of entertainment and financial markets are highlighted by this theory, whether it holds true or not. Drake, UMG, and the stock charts will be under scrutiny as the situation develops to determine if Wack 100’s speculation has merit.