Text/deline Berg
In the past two weeks, the rapper has sold half of his boutique music streaming service and his champagne brand Armand de Brignac, adding another sum to his already vast fortune.
American rapper Jay-Z at the 2018 Grammy Awards. Image source: Visual China Infographic
When Jay-Z first met billionaire investor Warren Buffett in Omaha in 2010, Forbes had the privilege of watching it; "Hip-hop music was very world-bound from the beginning, it was always breaking down the idea that artists can't care about money," he said. ”
More than a decade later, jay-z, who went from rapper to billionaire, is showing the world what his words really mean: He sold a majority stake in his music streaming company Tidal for $297 million to Square, a mobile payments company founded by Jack Dorsey, the second major deal he made in recent weeks. The deal valued Tidal at about $450 million, $150 million more than for Forbes in 2019. For the sale, Forbes estimated Jay-Z made a net profit of $149 million in cash and stock and secured a seat on the company's board. Earlier this week, he also bought back a 33 percent stake in Tidal from T-Mobile, then sold that share and the third part he already held. Tidal's "artist shareholders" will continue to hold a stake in the company, and Jay-Z will continue to hold a small stake in the company.
A week ago, he also sold half of his premium Champagne brand Armand de Brignac to LVMH, a deal valuing the champagne brand at about $640 million.
The two deals lifted the fortune of the first billionaire in hip-hop history from $1 billion to $1.4 billion today.
And that's just the beginning. His business is diverse and growing, including a remaining 50 percent stake in the Armand de Brignac champagne brand in a $300 bottle, D'usse cognac, and a range of less appealing startups such as insurance startup Ethos and salad chain Sweetgreen. In addition, he owns the rights to most of his musical works, a multimillion-dollar mansion he co-owns with his wife, Beyoncé, and his art collection grows.
In 2005, he wrote prophetic lyrics: "I'm not a businessman, I'm a business myself, man." ”
Here's what makes up his wealth:
Cash and investments: $425 million
For years, Jay-Z has preached the importance of spending money wisely — and he did, investing a significant portion of his estimated $760 million (pre-tax) revenue. His stakes include Uber and Square, as well as shares in unlisted companies such as salad chain Sweetgreen, insurance startups Ethos and SpaceX. His next big winning investment project could be: Oatly, an oat milk company that is expected to go public this year. The company is reportedly struggling to find a $10 billion valuation, and Jay-Z invested an undisclosed amount of money in the company in July 2020.
Champagne brand Armand de Brignac: $320 million
Last week, Jay-Z announced that he would sell half of his Champagne brand Armand de Brignac (aka "Champagne of Spades") to Moët Hennessy, a luxury company owned by LUXURY company LVMH. Forbes estimates the deal would value the sparkling wine brand at about $640 million, more than double the 2019 valuation and even more than Jay-Z himself sang about "half a B" in rapper Meek Mill's 2018 song "What's Free."
Record label Roc Nation: $140 million
Roc Nation, a joint venture between Jay-Z and Live Nation in 2008, is a full-service entertainment company that provides some of the biggest musicians in the industry, from musicians Rihanna and Alicia Keys to athletes Kyrie Irving and CC Sabathia. In addition, the company is responsible for the Super Bowl halftime show, the "Made in America" music festival, and even has a publishing deal with Random House. While the pandemic has cut back on the company's field travel business, the company's business has been growing steadily before the COVID-19 pandemic.
Cognac brand D'Usse: $120 million
In 2012, Jay-Z partnered with wine giant Bacardi to launch D'Usse. While its retail price is typically $30 per bottle, the 50 bottles of rare Duo Cognac currently at auction at Sotheby's, including a diamond-shaped crystal decanter, are valued between $24,000 and $75,000.
Music tracks: $95 million
As his musical repertoire continues to grow, Jay-Z's library of nearly 300 songs is worth $20 million more than two years ago. After a series of clever negotiations, he now owns both the rights and mastering of his own music.
Art Collection: $70 million
A fan of graffiti artist Jean-Michel Basquia, he mentions in his song "Picasso Baby" that there is a painting of the former in his kitchen. He reportedly bought another painting by the artist for another $4.5 million in 2013. In addition, Jay-Z's art collection includes works by artists such as Damian Hirst, David Hammons and Richard Prince. He sees the collection as an investment. As he sings in the song "The Story of O.J.": "I spent $1 million on some art, and two years later, it was worth $2 million, and a few years later, it was worth $8 million, and I couldn't wait to pass it on to my kids." ”
Real Estate: $50 million
In 2017, Jay-Z and Beyoncé bought two homes after giving birth to twins: a $88 million mansion in Bel Air and a $26 million East Hamptons mansion. Their property in Los Angeles is already $5 million higher than the buy price. Still, they still have a mortgage on the house, as if to prove that the couple is still two mortals. Finally, Jay-Z owns his penthouse in tribeca, which he bought in 2004 for $6.85 million.
Translated by Vivian School Li Yongqiang
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