Dave Grohl opens up on the matter
During the interview he was asked about a news Journalist Michael Azerrad wrote that covered stories from his time around Nirvana and he said there was a night during the American tour for In Utero when Kurt was yelling in his hotel room about firing Grohl. He told Kurt it was perfectly plausible that Grohl, being in the room next door, had heard him.
“I hadn’t, and I have kind of a different version of that story. We were on our way to Los Angeles to start production rehearsals for the In Utero tour, and I was sitting a few rows ahead of Kurt and Krist. I could hear Kurt saying, “I think we need a drummer that’s more rudimental, along the lines of Dan Peters,” who was the guy they almost hired.”
When Grohl had first called Nirvana’s bassist Krist Novoselic to inquire about the drummer job, Novoselic said he’d already hired Dan Peters from the Seattle band Mudhoney, a Nirvana scenemate. Novoselic later called Grohl and recommended he talk to Cobain — the two apparently felt guilty about stealing Peters from Mudhoney. Within a few weeks, Dave had relocated to Seattle.
“When I joined the band. I was really upset because I thought things were okay. I talked to Krist, and I said, “Is that really what you guys want to do? Because if that’s what you want, maybe just let me know, and we can call it a day.” I eventually talked to Kurt about it, and he said, “No. That’s not what we want to do.” I just felt like, It’s up to you guys what kind of drummer you really want, and they decided I should stay.”