Dr.Dre officially becomes the FIRST billionaire in hip hop (only 10 black billionaires in the world)

[prophecypro]

That's some impact, the streaming service must have been the one move they had to get

 

[labrokejames]

You know this news made cacs sick.



Congrats Andre

 

[retroracer]

Forbes is saying he's gonna be worth $800 million after the deal goes thru. So he basically doubled his net worth with this. Pretty crazy.

 

[Artificial Intelligence]

.......................

 

[Real]

@Sciz Change that thread title playboi

Forbes to Dr. Dre -- Not So Fast ... You're No Billionaire | TMZ.com

 

[Kings County]

@Sciz Change that thread title playboi

Forbes to Dr. Dre -- Not So Fast ... You're No Billionaire | TMZ.com

In the words of Ice Cube ... check yo self before you wrickity-wreck yo self.

fukk tmz

 

[Cynic]

"Late Thursday night, the Financial Times reportedthat Apple AAPL -0.73% was in talks to buy Beats for $3.2 billion; the deal would be the computer giant’s largest acquisition ever. Dre’s stake in Beats currently stands at somewhere around 20-25%; we valued the company at $2 billion in our latest round of estimates.

A sale for $3.2 billion would nearly double the value of Dre’s holdings, though capital gains taxes could take a bite out of his big payday, likely leaving him with a net worth in the neighborhood of $800 million. It’s not quite enough to land on the Forbes 400, but it would easily make him hip-hop’s richest man, topping current champion Diddy by $100 million."

It's impossible for Dre to own 20 to 25% when 68% of the company is already FACTUALLY accounted for outside of Jimmy (CEO) and Dre.

I
I
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Spoiler

The buttoned-down deal makers at Carlyle Group CG +0.26% LP are getting into the groove.

According to people familiar with the matter, the Washington-based private-equity firm is investing $500 million for a minority stake in Beats Electronics LLC, which makes pricey headphones branded by American rapper Dr. Dre.

Beats started selling headphones in 2008 and is majority-owned by its founders, music mogul Jimmy Iovine and American hip-hop producer and artist Andre Young, better known as Dr. Dre. HTC, of Taiwan, said Friday it agreed to sell its remaining 24.84% stake in Beats back to the U.S. company for $265 million.

Asked about progress on his plan to refocus Vivendi around media, Fourtou said, “Our strategy is to position the group on growth businesses. We invest in new activities that are sources of future growth … and finally taking stakes in companies similar to ours; 47% in Vevo, Spotify 5%, 14% in the Beats headphones manufacturer that has launched its own platform music streaming, and also interests in Firefox and other platforms. These investments increase in value and already weigh together more than a billion dollars.”

As it turns out, Universal’s 14% stake in Beats alone could account for about half of that worth. Using the rumored $3.2 billion purchase price, Universal’s stake equates to $448 million.

Beats Electronics, purveyor of the wildly successful Beats By Dr. Dre headphones, announced late last night that billionaire Len Blavatnik and a consortium of investors will pour $60 million into Daisy, the company’s nascent music streaming service.

47% - Carlyne (Fact)
14% - UMG (Fact)
7% - Len Blavatnik (Fact)

Perhaps all this means is I should be working for Forbes or proof reading their articles....

That said, even at 20 to 25 %... he STILL at $800million...


He will no longer own the company and will not create another company anytime soon if EVER.

So will reclaim his spot within a year or 2, and go on to become the first billionaire

#FactsOnly

Len Blavatnik invested in the streaming service (to go at Spotify/Pandora/Rdio) not the actual headphone manufacturer. So discount that 7% back into the fold and we still don't know what exact valuation Carlyle Group bought in at ........You can't just round up to 50% to suit your agenda..... Carlyle is still a minority shareholder :nateholdon:


I'm not going to get into tax reduction strategies and asset protection (ie using debt to lower capital gains TAX) but you made a lot of unwarranted assumptions in your $619 million dollar calculation but I'll admit these few posts are actually start to get entertaining so I'll leave you be :pharrell:

 

[Lucky Millionaire]

congrats dre

 

[Malik]

Yo dog, whats the difference between a Beats by Dre headphone and a SMS headphone?...

Like 3.2 billion, cocksucker, beat it...

 

[Still Benefited]

to that bytch azz nikka Dre,i don't like a lot of his moves but that's why hes a billionaire and im a hundredaire...unless of course we rounding up

And his endorsement just helped make a company 3.6 billion...how long you number crunching azz nikkas think its gon take before somebody throw em 200 more million or so to endorse some overpriced bullshyt and go ahead and make it official...didn't 50 get 200 million just to make a bunch of straight to DVD movies...no disrespect to 50 that was big too,but im just pointing out that the 200 million he may need aint far off...but keep wasting time disputing the inevitable though

 

[ManBearPig]

Dr.Dre.

Let me hold 100, 000

 

[Optimus Prime]

Dre came a long way

 

[L&HH]

I know his money doesn't improve my life but this tell cats who are blessed to come across some money to put it in other things besides c00n shyt.

c00n shyt = subpar clothing lines, grills, hip-hop record labels, a wingstop restaurant (lol), etc.

these rappers need to start getting into the tech industry, startups, venture capital and all that jazz. If I had access to these nikkas, that'd be the hustle I'd try to put them on.

Just read this.

The VC hustle is bullet-proof, damn near guaranteed to make money

After the VC calls and says they are ready to invest, thats when the headaches can begin and it starts with the term sheet: the thing you need to sign in order to get the money. And when it comes to term sheets, time is on the side of the VC and time is the enemy of the entrepreneur. The VC knows this and uses it to their advantage. For instance: did you know that when you are negotiating the term sheet you are not only paying for your lawyer, you are paying for the VC's lawyer as well? It is not uncommon to be in the hole $150k in lawyers fees just to negotiate the term sheet. And the process can stretch on for months, taking up the time, attention, and resources of the founders. By the end of the process, taking the money is no longer a nice to have, it is a need to have. And the VC's know this.

Standard A round deal goes something like this: first, the current valuation of the company is negotiated. This can be a rough one for young entrepreneurs. The entrepreneur wants as high a valuation as possible so they give away less of the company. The VC wants as low a valuation as possible for the same reason. Too high a valuation is not good for the entrepreneur because it might discourage future rounds ( and believe me, you are going to need future rounds). So the number needs to be as right as possible. Not too high, not too low.

Based on the valuation, the percentage of the company you still own is determined. Let's say you decide your company is worth $1 million before investment and the VC is writing you a check for $1 million. 1 plus 1 equals 2 so your post funded company is now worth $2 million and the VC owns half. But the VC really owns MORE than half.

Let's say your company sells for $5 million. Woo Hoo.... you're RICH...well not as much as you thought. First, before the pie is split, you need to pay the VC back their $1 million bucks. So now there is only $4 million left. NOW you need to pay the VC back INTEREST (around 8.5%) on the million bucks compounded annually. So there is more money out the door, let's say another $300,000. Now your company has $3.7 million left. Subtract another couple of grand for attorney's fees and let's make it a cool $3.5 million left.

At that point, you get your 50% of whatever is left, around $1.7 million. And by the time the tax man gets through, you might be able to buy a fixer upper somewhere. Maybe. Because another part of a standard VC deal is that the VC has a better grade of stock then the entrepreneur does. They have Preferred, you have Common. Preferred always gets paid before Common. That means if there is no money left after all the VC's have been paid back with interest, they get it all.

Add another factor: liquidation rights. Especially in later rounds when the company is desperate, investors might ask for better liquidation rights. Instead of $1 dollar back for every dollar they put in, they might ask for $2 back for every $1. Or $5 back for every dollar invested. All of which gets paid before the company is then converted into common shares and you divide up the pie.

In addition to all of that, they are going to want the ability to have enough board seats to protect their interests. And they may ask you to pay the board members in stock. So you now work for them. They can fire you at their whim, even the next day. They can set your salary, which is part of the negotiation. They can tell you who to hire and whom to work with. They can tell you to move offices. Or they can decide one day to just come in and sell your company out from under you for peanuts.

 

[Robbie3000]

Yo dog, whats the difference between a Beats by Dre headphone and a SMS headphone?...

Like 3.2 billion, cocksucker, beat it...

Woodface is somewhere sick. He thought he could compete with Dre and Jimmy. SMS is irrelevant and he is on an indie label.

 

[McPiff]

I'm just happy Jay-Z is not the first rap billionaire. Could you imagine a whole album of him dedicated to boasting himself as the first billionaire? I don't wanna either.

that crab mentality