The tech world is exploding with the news of Apple’s reported $3.2 billion acquisition of the Beats Headphones. Last night, the company’s cofounder and former rapper Dr. Dre took to Youtube to brag that he’s the first billionaire in hip-hop.
But not so fast — Forbes ran the numbers on the capital gains taxation for the deal, and it turns out that Dr. Dre still most likely falls short of a $1 billion net worth. The Guardian breaks down the numbers like this:
“The good doctor is presently worth $550m. He co-founded Beats, but last year Carlyle Group acquired a minority shareholding for $500m. His present stake is thought to be somewhere between 20 and 25%.
“Which means? That after the sale – and after tax – Dre will be worth $800m; ahead of Diddy and Jay Z, but some way shy of his first billion.”
While it’s possible that Dr. Dre is able to leverage his position within the Beats empire to eventually earn the title of first billionaire rapper, for now, it seems more like an over-the-top late night brag line than a legit claim.