NewsWritten by Tom Williams on May 10, 2014
Despite claiming that he would shortly be the first billionaire in hip-hop, Dr Dre won’t reach that milestone even if yesterday’s reports that technology giant Apple are in talks to acquire Beats Electronics for USD$3.2 billion are true.
Forbes Assistant Managing Editor for Wealth has told TMZ that once all the math is done, and the state and federal taxes accounted for, Dre will be worth around USD$800 million, because he only owns roughly 25% of the company.
The details show that after tax, Dre would be left with USD$480 million, but that when you add on his other assets his total wealth would be around the USD$800 million mark. The Forbes editor explained that it’s, “Not quite enough to debut on the Forbes 400 but plenty for bragging rights.”
Dre made the hip-hop billionaire claim in a homemade video which was originally uploaded to Facebook by actor Tyrese Gibson, suggesting an imminent public announcement by Apple. Gibson congratulates Dre in the clip, saying “Billionaire boy’s club for real hommie.”
When Dr Dre finally comes into shot, he says, “The first billionaire in hip-hop, right here from the motherfucking West Coast.” The full clip can be seen below, although it has now been pulled from Facebook.
The Apple/Beats deal is reportedly worth a total of USD$3.2 billion, and if true would be the largest acquisition Apple has ever undertaken. Beats, a high-end audio products and equipment company, was co-founded by Dr Dre in 2008.
Forbes published their 2014 list of the wealthiest stars in hip-hop in April this year, with Dr Dre coming in second behind Sean “Diddy” Combs. But it seems like that may all be about to change, even if Dre doesn’t break that billion dollar barrier.
Watch: Hip Hop First Billionaire Dr.Dre & Tyrese Announce Apple Buying Beats For $3.2 Billion!
Cash Kings 2013: The World’s 20 Highest-Paid Hip-Hop Artists – The Top 10
1. P. Diddy ($50 million) - How can this be? P. Diddy hasn't been popular since he changed his name to be more child friendly. Ciroc vodka. That's how. The rapper can attribute most of this cash to the success of the brand as well as his record label Bad Boy as well as his Sean John clothing label and probably the odd sale from 1997's No Way Out.
2. Jay Z ($43 million)
- He may not be #1 but $43,000,000 is still some serious cheese. A natural born business man, Jay-Z is always scheming something. The cool $5 million deal with Samsung surely didn't hurt this net figure leaving the other $38 million to come from Armand De Brignac alcohol sales.
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3. Dr. Dre ($40 million) - This one's easy to explain. Create an average quality headphone set, mark up the price 800%, get enough famous people to wear them so the unwashed masses feel they want, nay, need a pair and viola, $40 million.
4. Nicki Minaj ($29 million) - Narrowing in on a radio friendly, yet kinda gangsta niche, say what you will about Minaj but she's doing something different and it's working. Penning a cash-heavy deal with American Idol doesn't hurt either.
5. Birdman ($21 million) - One of the Cash Money Records tycoons, Birdman is probably struggling to get out of the way of the money. Once again, Vodka sales played a role in this figure.
6. Kanye West ($20 million) - Leather jogging pants, snowman outfits and Maybach vehicles. $20 Million may seem like a lot but not if you're this much of a douche. Fail, Kanye. I believed in you. Hmph.
7. Lil Wayne ($16 million) - Lil Wayne is also another puppet master of Cash Money Records, though didn't tie with counterpart Birdman as Wayne probably blew most of it on legal bills. Legal bills and codine. Wayne also earns passive income from his own record label Young Money.
8. Wiz Khalifa ($14 million) - Wiz Khalife is doing suprisingly well for a newbie to the game. Life shows and a killer follow up album saw Wiz make it to the list. Mind you he better keep it up as $14 mill isn't enough to keep Amber Rose happy.
9. Ludacris ($12 million - With his new album still yet to be released, Luda is relying on the cash from Soul heaphone sales, live shows, his mad acting skills and that sweet, sweet 'fuck you' Conjure Congac money.
10. Pitbull ($11 million) - Unfortunately, there are people out there who like this dude. Sales of his latest album Global Warming saw Mr. Worldwide's bank account soar. Touring played it's part as did sponsors with Kodak and Dr. Pepper so kids, remember, you can make double-digit millions by scrapping the barrel.