Beats By Dre” soon to be “Beats By Apple”???? Apple is “closing in” on Dre’s Beats headphones and their streaming service for a whooping $3.2 billion dollars. Does that mean that Dre is going to be the first billionaire of Hip-Hop? Find the answer after the jump:
Congrats Dr. Dre..... In Biggie's words “You never thought that Hip-Hop would take it this far.” It’s a great day for hip hop, on how far it has come and where it could go. Hip hop was started by African Americans, so this news is definitley an accomplishment.
Beats is primarily known as the popular high-end headphone maker founded in 2008 by rapper-turned-businessman Dr. Dre and music producer Jimmy Iovine. Forbes had previously estimated that the founders each owned approximately 25% of the company. The majority owner HTC backed out and private equity firm Carlyle Group invested as a minority partner. I know HTC must be kicking themselves because they sold their shares for a lot less than 800 million. Beats also reportedly raised $60 million in funding from other billionaires. So, after capital gains taxes, the sale will most likely leave Dre with a net worth of $800 million. Dr. Dre is presently worth about $550 Million. However, he only owns 25% of Beats, which means he will only make about $800 Million on the sale BEFORE taxes. The tax is what will keep his net-worth just under a Billion dollars.
Either way, it’s still a big thing in the history of hip-hop!
Still proud tho
ReplyDelete