Dr. Dre: hip hop billionaire? – FORTUNE

MEXICO CITY (CNNExpansión) – Musicians like Sean Diddy Combs and Jay-Z, considered rappers richest in the world, amassing a fortune of between 500 and 700 million, but now Dr. Dre has passed by Apple.

apple firm confirmed the purchase by 3,000 million dollars (mdd) headphone company and streaming service music Beats, Dr. Dre or that Andre Young (his real name) founded with Jimmy Iovine in 2008.

The transaction represents one of the largest for both Apple as for the musician from Los Angeles, California, who “first hip hop billionaire on the West Coast” called himself in a video posted in early May.

The rapper had between 20 and 25 % of Beats, which would boost its estimated $ 550 million to nearly 1,000 billion fortune, according to CNNMoney.

Billionaire jump would put on top of the richest rappers in the world and displace his comrade Sean Diddy Combs to second place, followed by Beyoncé’s husband, Jay-Z.

Before Beats, Dr. Dre was recognized for being the first musical producer hip-hop to be awarded a Grammy for it. Also discovered other stars in the field as Eminem and 50 Cent.

Your earphones achieved worldwide fame during the Olympic Games in London in 2012 when the company sent gift accessories several athletes, thanks to Panasonic sponsored the event. Currently it is common to see these headphones, the cost is between $ 400 100 and about athletes like Serena Williams, Cristiano Ronaldo and Rafael Nadal.

Beats reported revenues of 1,400 million dollars in 2013 and covers más 60% in the market for hearing aids with a higher cost to $ 100, according to a report quoted by analyst Ben Thomson .

But Dr. Dre is not the only one who wins. The leading and less musician too, Will Adams or better known as Will.i.am, is the third partner to enjoy the economic benefits of buying Beats.

“It’s not only good for the company , also for the culture, “said the member of the band Black Eyed Peas, who would not disclose the percentage of its stake in Beats, during an interview with CNNMoney.

Will.i.am has stated that by choice wanted to keep a low profile within the company to not interfere with his musical career, but the supports with a squad of 40 hardware developers.

Apple Analysts and critics estimate that technological movement is an attempt to join the wave of streaming services music and get more “adult”. Some agree that it might have been a better bet to invest in other companies like Spotify.