Over the past two weeks, the rapper struck deals to sell his boutique music streaming service and half of his champagne brand Armand de Brignac, adding an enormous pile of cash to his already massive fortune.
“Hip-hop from the beginning has always been aspirational,” Jay-Z said in 2010 when Forbes got a ringside seat to the rapper’s first meeting in Omaha with billionaire investor Warren Buffett. “It always broke that notion that an artist can’t think about money as well.”
More than a decade later, the rapper-turned-billionaire is showing exactly what he means: In his second major deal in as many weeks, Jay-Z inked a deal to sell a majority stake in music streaming company Tidal to Jack Dorsey’s mobile payment company Square for $297 million. The transaction valued the company at about $450 million—$150 million more than Forbes’ 2019 estimate. Forbes figures he netted out $149 million in cash and stock—and got a board seat—after buying back 33% of Tidal from T-Mobile earlier this week and then selling that and the third he already owned. Tidal’s “artist shareholders” will continue to have a stake in the company, and Jay-Z will own a small percentage, as well.
This comes a week after he sold half of his Armand de Brignac champagne to LVMH in a deal that valued the luxury liquor company at about $640 million.
The two deals helped lift the fortune of hip-hop’s first billionaire to $1.4 billion, up from $1 billion.
It’s just the start. His diverse and growing business includes the remaining 50% stake in the $300-per-bottle Armand de Brignac, as well as D’Usse cognac and a collection of less-sexy startups including insurance startup Ethos and salad chain Sweetgreen. He also owns a chunk of his own music, shares multiple multi-million dollar mansions with his wife Beyoncé and has a growing art collection.
In 2005 he laid down the now prophetic lyric, “I’m not a businessman, I’m a business, man.”
Cash and Investments: $425 million
Jay-Z has been singing about the importance of spending money wisely for years—and he’s done just that, pouring a good portion of his $760 million estimated earnings (pretax) into investments. His holdings include stakes in Uber and now Square, as well as in private companies like salad chain Sweetgreen, insurance startup Ethos and SpaceX. His next likely big win: Oatmilk company Oatly is expected to IPO this year and is reportedly seeking a $10 billion valuation. He invested an undisclosed amount in July 2020.
Armand de Brignac: $320 million
Last week, Jay-Z announced he was selling half of his champagne company, also known as Ace of Spades, to luxury house LVMH’s Moët Hennessy. Forbes estimates that the deal valued the gold-bottled bubbly brand at $640 million—or more than double its estimated value in 2019 and even more than the “half a B” Jay-Z himself rapped about on Meek Mill’s 2018 song “What’s Free.”
Roc Nation: $140 million
Jay-Z’s joint-venture with Live Nation was founded in 2008 and is a full-service entertainment company serving some of the biggest names in the biz, from musicians Rihanna and Alicia Keys to athletes Kyrie Irving and CC Sabathia. The company is responsible for the Super Bowl Halftime Show, Made in America music festival and even has a publishing deal with Random House. While the pandemic has slowed the company’s live-touring business, it was growing steadily prior to Covid-19.
D’Usse: $120 million
A partnership with liquor giant Bacardi, Jay-Z’s cognac launched in 2012. While it typically retails for a reasonable $30 per bottle, fifty rare bottles—including a diamond-shaped crystal decanter—are currently at auction at Sotheby’s for an estimated price tag of $24,000 to $75,000 each.
Music Catalog: $95 million
With multiples for music catalogs on the rise, Jay-Z’s library of nearly 300 songs is worth $20 million more now than it was two years ago, and thanks to a series of smart negotiations, he owns both the publishing rights and master recordings to his music.
Art Collection: $70 million
A fan of Jean-Michel Basquiat—he raps about having one in his kitchen on his song“Picasso Baby” and reportedly spent $4.5 million on one in 2013—Jay-Z’s impressive art collection also features works by Damian Hirst, David Hammons and Richard Prince. He sees the collection as an investment. As he sang on “The Story of O.J.”: “I bought some artwork for one million, Two years later, that shit worth two million, Few years later, that shit worth eight million, I can’t wait to give this shit to my children.”
Real Estate: $50 million
Jay-Z and Beyoncé picked up two homes in 2017 after giving birth to their twins: an $88 million Bel Air mansion and $26 million East Hamptons spread. The Los Angeles home is already worth $5 million more than the purchase price. Proving that the couple is, in fact, human, they still have a mortgage on the home. He also still owns his Tribeca penthouse bachelor pad that he bought in 2004 for $6.85 million.
Revealed: How a CEO Went from Making $50k a Week to $50 k a Year
For most investors, their dream is to make a lot of money from their business before thinking about what to do with the excess. This was no the case with Australian CEO Ronni Kahn. She left her lucrative business that was paying her $50k a week to managing a charity that would pay her $50 k a year.
Before Ronni Kahn became the CEO of global food charity, OzHarvest, she owned an event management business – a role that would see her bring in around $50,000 a weekend.
Then, in 2009, she won Vodafone’s World of Difference award, which requires the recipient to work solely on a charity of their choice – in exchange for a salary of $50,000.
Having founded OzHarvest in 2003 and worked simultaneously on the charity and her business, she had to choose between a lucrative business, or a start-up charity.
“I decided it was time to dive without a parachute,” she revealed to The New Investors host, Sarah O’Carroll.
“I left a business that sometimes could have made $50,000 on a single weekend – but it was the best thing I ever did.”
Who is Ronni Kahn?
Ronni Kahn AO is an Australian social entrepreneur, best known for founding the food rescue charity OzHarvest.
Born in South Africa, Kahn moved to Israel where she lived on a kibbutz for many years before emigrating to Australia in 1998 and starting an events management business. On a vacation to South Africa, she was galvanised into action by a friend when visiting Soweto who told her that “she was responsible for electricity in Soweto”.
Kahn recalls that was the moment her life of purpose began. I knew I had to come back and do something meaningful for other people…”Building on her experience in corporate hospitality, she was shocked by the amount of food waste, although not initially aware of the relationship between food waste and environmental problems.
A Repurposed Life
Kahn’s memoir A Repurposed Life was released in 2020. Kahn said: “I didn’t grow up being ambitious about anything, but when you find your calling, then you are empowered by a force that is unstoppable.”
Ronni Kahn has been acknowledged as a leader in the fields of entrepreneurship, social impact and innovation. Her contributions have been widely recognised through numerous awards including:
- 2010 Australia’s Local Hero, Australian of the Year Awards, in recognition of her work founding OzHarvest.
- 2010 Enriched List, American Express
- 2011 InStyle Woman of Style Award – Community /Charity category
- 2012 Veuve Clicquot Award Business Woman Tribute Award for Innovation, Entrepreneurial Skill and Contribution to the Community
- 2012 Ernst & Young Social Entrepreneur of the Year
- 2017 BOSS magazine Top 21 True Leaders
- 2017 Gourmet Traveller Outstanding Contribution to Hospitality
- 2017 Griffith University Doctor of the University (honoris causa)
- 2018 The Australian Financial Review 100 Women of Influence award for social enterprise and not-for-profit
- 2019 Officer of the Order of Australia (AO). For distinguished service to social welfare, particularly through the development and delivery of innovative programs.
Forbes: No, Kanye West Is Not The Richest Black Person In America—And Here’s Why
Reports that the celebrity is worth nearly $7 billion are based on the magical thinking around sales that don’t yet exist. This is why he’s currently worth less than one third of that.
On Wednesday, multiple outlets reported that Kanye West is the richest Black person in America, worth as much as $6.6 billion. The news comes after Bloomberg reported that his sneaker brand, Yeezy—as well as Yeezy Gap, which has yet to sell one stitch of clothing—have a combined value of as much as $4.7 billion. The publication mentioned, without going into full detail, an additional $1.7 billion in assets.
It’s not true, based on our calculations. Forbes estimates he’s worth less than a third of that, or $1.8 billion. That’s a big jump from last May when Forbes first pegged his net worth to be $1.3 billion, but nowhere near as much as the purported $6.6 billion. Vista Equity’s Robert F. Smith remains the richest Black person in the U.S., worth an estimated $6 billion, while Aliko Dangote of Nigeria, worth $11.8 billion, is the richest Black person in the world.
The sky-high estimate is the latest of West’s attempts to inflate his net worth—in the past he’s said that Forbes was “purposely snubbing me.”
In actuality, it’s nothing personal. The Bloomberg story cites a UBS report on his businesses—the same document Forbes saw earlier this month. The bank made a number of assumptions based on projected future earnings, particularly for Yeezy Gap, which hasn’t even launched yet. Bank documents like this are well-known for painting best-possible-scenario future valuations.
Forbes’ much more grounded number is based on that old-fashioned idea of current revenues—not theoretical future expectations. Yeezy Gap has brought in no revenue, let alone any profits. Who knows if the line will be popular? Maybe another hip-hop star will create the next trendy sneaker in a year or two, and Yeezys will be old news. The same thinking goes for Yeezy Supply, West’s e-commerce platform. He has high hopes to turn it into a fashion destination—as of now, it just shills his shoes.
As for Yeezy sneakers, they’re selling crazy well. The company’s revenue grew 30% last year. and its most recent limited drop, the 450 in Cloud White, sold out in under a minute. Analysts with who we spoke agree there’s growth left in the business, and if that occurs, his net worth will continue to climb. But even that’s not 100% certain, so for now, we are sticking with 2020’s numbers.
Forbes is treating West the same way we do everyone else with similar royalty-based businesses: We take the most recent year’s licensing income and apply a multiple to it to account for the fact that this is an ongoing revenue stream. This is exactly how we value Donald Trump’s licensing businesses and Jay-Z’s music catalogue.
West’s wildly optimistic approach to his net worth mirrors the approach used by Donald Trump, who insists the value of his name be included in any net-worth estimate. Trump, whom we value at $2.5 billion, says his brand has an intrinsic value, regardless of actual revenue. West and his camp are making a similar argument for businesses attached to the Yeezy name.
Here’s a breakdown of Forbes’ estimate of his net worth—which is quite impressive, even if it’s not as high as he wants (or thinks) it to be:
Yeezy: $1.5 billion
Still the crown jewel of his fortune, sales of West’s sneaker brand, which has a ten-year-long production deal with Adidas, climbed to $1.7 billion last year, up from $1.3 billion in 2019. As a result, West earned $191 million in royalties last year. It’s impressive growth. While UBS predicts the brand will reach over $3 billion in sales by 2026, and valued it accordingly, we went with 2020 numbers: The operating income of Yeezy, which is 100% owned by West, was $214 million in 2020. With a 9x multiple and 20% private company discount, Forbes calculates that the Yeezy business with Adidas is worth $1.5 billion, about $250 million more than it was a year ago.
Cash and other assets: $160 million
Thanks to the millions he’s made from Yeezy and his music, West has accumulated a nice-size pile of cash, as well as homes and toys. He owns more than $100 million in real estate—including multiple ranches in Wyoming and homes in the Los Angeles area. According to a balance sheet sent over by his team, there’s also $9.3 million worth of artwork, $7.6 million worth of jewelry, $5 million worth of vehicles, $3.4 million worth of furniture and $1 million worth of livestock. Along the way, he has also racked up a significant amount of debt: $56 million. We couldn’t track down every horse, chair and necklace, so again applied a discount to the numbers provided. We also didn’t include any value for the website Yeezy Supply, which West’s camp claims is worth $1.5 billion. Forbes counts its value via royalties of the Yeezy shoe sales made through the site in the Adidas deal.
Music catalogue: $90 million
While he may make most of his money as a fashion mogul, West started out as one of the world’s most popular rappers, and his catalogue of songs still brings in millions in royalties each year. Just like with Yeezy, he could cash out on that royalty stream, as musicians from Shakira to Bob Dylan have in the last year.
Skims: $64 million
West and his soon-to-be ex-wife Kim Kardashian West may have ended their marital relationship, but they maintain certain business ties. West has a small stake in his ex’s shape wear and loungewear company Skims, which has grown during the Covid-19 pandemic.
Yeezy x Gap: $0
While West’s team insists the Yeezy x Gap deal is worth about $1.5 billion and the Bloomberg story says it could be worth as much as $970 million, Forbes isn’t giving this any value until the products start to sell. The deal, announced in June, sent Gap’s stock soaring, and CEO Sonia Syngal spoke of its “big potential” in an earnings call earlier this month. But the line hasn’t sold one piece of clothing yet.
Source : Forbes
Patrice Motsepe elected CAF President
The task of projecting African football onto the global stage has begun following the election of Patrice Motsepe as CAF President by acclamation during the 43rd CAF Congress, which has taken place in Rabat, Morocco. Mr Motsepe will not only lead a revised African confederation, but an organisation that will see substantial change at CAF Executive Committee and FIFA Council level following various elections which have also been held.
Mathurin de Chacus (Benin), Isha Johansen (Sierra Leone), Fouzi Lekjaa (Morocco), Amaju Pinnick (Nigeria) and Mamoutou Touré (Mali) will all join Hany Abo Rida (Egypt) on FIFA’s Council, while Kanizat Ibrahim (Comoros) and Mbombo Njoya (Cameroon) were elected to the CAF Executive Committee. Other regional appointments were also made with Wadie Jary (Tunisia) elected to the northern zone and Elvis Raja Chetty (Seychelles) and Maclean Letshwiti (Botswana) both elected to represented southern zone.
“Africa needs collective wisdom, but also the exceptional talent and work of every (national football association) president and every member nation,” new CAF President Patrice Motsepe said. “When we all work together, football in Africa will experience success and growth that it has not enjoyed in the past.”
It is a position fully endorsed by FIFA President Gianni Infantino, who also took the opportunity to congratulate all the presidential election candidates on their collective vision and team spirit.
“I would like to congratulate Patrice Motsepe for his wisdom, his engagement, for his passion,” the FIFA President said. “I want to wish all the very best for the next four years, to the new leading team of CAF, of African football, and to Patrice Motsepe, to all those who have been involved, to Augustin Senghor, Ahmed Yahya, Jacques Anouma, who will now have important roles in CAF’s administration. You all want a strong and united Africa, projecting itself forward. It is thanks to you, it is your decision, your wish, your hope and your ambition. I want to assure you that FIFA is not at your side, FIFA is together with you.”
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