Many people have been saying that Dr. Dre is a billionaire but I have been second-guessing this since there has not been much news on this topic on TV or the Internet. For those of you who do not know, back in 2008 Dr. Dre and Jimmy Iovine, The chairman at Interscope Records founded Beats Electronics and in August of 2011, Dr. Dre and Jimmy Iovine sold 50 percent share of their company to HTC for $309 million. Later Dr. Dre and Jimmy Iovine bought back 25 percent of HTC’s stake for $150 million, making Dr. Dre and Jimmy Iovine 75 percent owners of beats. Carlyle group later bought HTC’s 25 percent stake and also bought 25 percent from Dr. Dre and Jimmy Iovine giving Carlyle group 50 percent owner ship and Dr. Dre and Jimmy Iovine both ending up with 25% each.
As many of you already know, Apple bought Beats for $3 billion. Because of this deal, people are assuming that that Dr. Dre has become not only Hip-Hops first billionaire but a multi billionaire. Lets not forget That Dr. Dre only owns 25 percent of the company so his cut of the deal was only $750 million before taxes, which is still a lot but not a billion. Out of this $750 million roughly 33 percent will go to taxes, that about $250 million, actually leaving him with a little over $500 million out of the $3 billion. If Dr. Dre were never part owner of Beats by Dre, his net worth would only be $200 million due to 3 decades of selling music, producing music, selling merchandise and touring.
Therefore, no Hip-Hop artist has actually become Hip-Hops first billionaire, but Dr. Dre and Diddy come closest to it with a net worth of over $700 million each. Maybe in the next few years we will see if any Hip-hop Artist will become Hip-Hops first billionaire.