Last week, it was reported that Apple is planning to acquire Beats By Dre (Beats Electronics) for more than $3 billion dollars, and that the deal would make rap mogul Dr. Dre hip-hop's first billionaire. As of today, he is already worth $550 million.
However, Forbes Magazine is reporting that after the acquisition, Dr. Dre's net worth still won’t be at the billion dollar mark.
Here's why:
Forbes reports that Dr. Dre has only a 25% stake in the company, and so the most he would personally gross from the sale is about $800 million. But after state and federal taxes, he’ll be left with $480 million. With his other assets calculated in (his record label, masters, etc), his net worth will actually be just $800 million, still $200 million dollars short from being a billionaire.
That is, however, enough to make him hip-hop’s most wealthiest man, outdoing the current champion P. Diddy by $100 million.
Although not quite a billionaire, Dr. Dre has made huge accomplishments and should be applauded as one of the most successful African American business owners of all time. His Beats By Dre company controls two thirds of the premium headphone market, and has annual sales reportedly in excess of $1 billion.
That's not too shabby!