Forbes has just released its short list of hip hop’s wealthiest moguls, and Sean “Diddy” Combs tops the list with a net worth of $550 million.
Jay-Z and Dr. Dre follow at No. 2 and 3, respectively, while Cash Money Records co-founder Bryan “Birdman” Williams and 50 Cent round out this year’s “Forbes Five.”
Diddy, founder of Bad Boy Records, receives double-digit millions annually as a share of profits from Diageo-backed Ciroc vodka. Sales of the spirit spiked 122% last year in the wake of strong demand for new flavor Ciroc Peach; he is entitled to a nine-figure chunk of cash if the brand is ever sold.
Diddy also boasts stakes in clothing lines Sean John and Enyce, marketing firm Blue Flame, record label Bad Boy and a handful of tech startups. But it’s his deal with Comcast to launch cable channel “Revolt” in 2013 that could push him into billionaire territory. He’ll own the channel outright, and based on projected viewership totals, its value could soar into the low-to-mid nine figures within the next few years.
Next up is Jay-Z at $460 million. Unlike his fellow Forbes Five members, Jay-Z still churns out music and goes on tour—most recently with pal Kanye West—adding to his considerable war chest. He sold his Rocawear clothing label for $204 million in 2007 and signed 10-year $150 million deal with Live Nation in 2008, and also holds stakes in the New Jersey Nets, his 40/40 Club chain, ad firm Translation, cosmetics company Carol’s Daughter and other businesses.
Dr. Dre ranks third with $270 million, doubling from a year ago thanks to a major sale. In August, handset maker HTC paid $300 million to buy a 51% stake in Beats Electronics, the company founded by Dr. Dre and Interscope chief Jimmy Iovine in 2008. Sources say each owned a third of the company before the deal, placing Dre’s cut at $85 million after taxes. The agreement also values Dre’s remaining stake at $100 million, which could increase rapidly as the company continues to expand.
In order to form the list, Forbes looked at past earnings, valuing current holdings, leafing through financial documents and talking to analysts, attorneys, managers and other industry players to gather details. Also, only performers were considered.
