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Elon Musk’s Net Worth Eclipses $20 Billion For First Time

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Elon Musk, a polymath entrepreneur who nearly went bankrupt launching Tesla Motors and rocket company SpaceX, is now worth more than $20 billion.

On Wednesday, Forbes unveiled its annual Richest In Tech list, which ranks the 100 wealthiest self-made tech billionaires. Musk placed 12th in the order, at $20.7 billion, ahead of high-profile names including Paul Allen ($20.5 billion) and Eric Schmidt ($12.4 billion).

This week marks the first time Musk’s fortune has eclipsed $20 billion on Forbes’ rankings of the planet’s wealthiest people. In March, when Forbes released its list of The World’s Billionaires, his net worth stood at $13.9 billion.

Much of the increase since then is attributable to the soaring value of aerospace firm SpaceX. The company, which ultimately plans to send humans to Mars, raised $350 million last month at a valuation of about $21 billion; Musk owns more than half of the business. News of the funding round was first reported by the New York Times.

Why Do Investors Believe Elon Musk But Not Mary Barra?

SpaceX has notched a number of significant achievements this year. In March, it sent a cargo payload into orbit with a previously-used rocket, making it the first private company to do so. More recently, on Wednesday, Musk revealed the first images of a SpaceX spacesuit on his personal Instagram page. He confirmed in February that the company will send humans to space as early as next year.

Progress at Tesla, Musk’s publicly-traded electric carmaker, has also been strong. The company is rolling out a new, lower-priced vehicle, the Model 3, to substantial demand and nearly universal acclaim. The business continues to rack up losses, but Tesla’s stock has nonetheless jumped 55% in the last year.

How To Raise A Family Of Genius Billionaires

Musk, 46, realized his first major entrepreneurial success in 1999 selling software firm Zip2, which he cofounded, to Compaq for a reported price of more than $300 million; he had previously deferred graduate school at Stanford to start the business. He then made an even larger fortune after Paypal, which he also cofounded, was acquired by eBay for $1.4 billion in 2002.

Musk joined Tesla in 2004 as a key investor and became CEO in 2008, when the business struggled to find credit during the global financial crisis. He reportedly liquidated nearly all of his assets to fund continued development at Tesla and SpaceX, both of which were viewed as long-shot ventures by many outsiders.

Now, as SpaceX rockets fly further into space, Musk’s net worth seems to defy gravity as well. – Written by 

Billionaires

Africa’s Richest 2020: Steady State With Some Volatility On The Margins

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Like elsewhere in the world, fortunes in Africa can be volatile, thanks to changes like a new currency.


Africa’s billionaires are as a group richer than a year ago. Altogether, the continent’s 20 billionaires are worth a combined $73.4 billion, up from $68.7 billion a year ago.

For the ninth year in a row, Aliko Dangote of Nigeria is the richest person in Africa, worth an estimated $10.1 billion, down from $10.3 billion a year ago amid a slightly lower stock price for his Dangote Cement, his largest holding. The much-heralded oil refinery that Dangote is building in Nigeria is still at least a year away from completion.

Nassef Sawiris of Egypt is the new number two richest, worth $8 billion—up from $6.3 billion last year. Sawiris’ most valuable asset is a stake in shoemaker Adidas worth a recent $4 billion. The increase in Adidas’ share price alone added nearly $1.5 billion to his fortune since January 2019. He also owns a significant stake in fertilizer producer OCI N.V. In 2019, Sawiris and U.S. investor Wes Edens purchased the remaining stake they didn’t own in U.K. Premier League team Aston Villa Football Club.

Number three on the list is Nigeria’s Mike Adenuga, worth $7.7 billion. He owns mobile phone network GloMobile as well as oil producer Conoil and extensive real estate holdings.

One member of this elite group is worth 50% less than a year ago. Due primarily to the introduction of a new (weaker) currency in Zimbabwe, Strive Masiyiwa’s fortune fell to $1.1 billion from $2.3 billion in January 2019. Zimbabwe, which has battled with hyperinflation, had been using the U.S. dollar as its currency, but in 2019 it switched to its own currency, initially called the RTGS. When converted into U.S. dollars, the values of Masiyiwa’s stakes in Zimbabwe-listed mobile phone network Econet Wireless Zimbabwe and Cassava Smartech fell dramatically in dollar terms.

 Just two of the 20 billionaires are women: Isabel dos Santos, the eldest daughter of Angola’s former president, Jose Eduardo dos Santos; and Folorunsho Alakija of Nigeria. Dos Santos’ fortune has declined to an estimated $2.2 billion, down $100 million from a year ago. In late December, an Angola court issued an order to freeze the assets that Isabel dos Santos and her husband, Sindika Dokolo, own in Angola. Those include her stake in telecom firm Unitel and stakes in two Angolan banks; Forbes estimates those assets are worth hundreds of millions of dollars. A statement issued by Isabel dos Santos said the judgment contained “a number of untruths” and that she would fight the decision “by using all the instruments of Angolan and international law at my disposal.”

Country rankings are unchanged from a year ago: Egypt and South Africa are tied with five billionaires each, followed by Nigeria with four and Morocco with two. Forbes found one billionaire each from Algeria, Angola, Tanzania and Zimbabwe. That’s the same as last year but a better representation than nine years ago, when only four African nations were home to ten-figure fortunes.

METHODOLOGY

Our list tracks the wealth of African billionaires who reside in Africa or have their primary businesses there, thus excluding Sudanese-born billionaire Mo Ibrahim, who is a U.K. citizen, and billionaire London resident Mohamed Al-Fayed, an Egyptian citizen. (Strive Masiyiwa, a citizen of Zimbabwe and a London resident, appears on the list due to his expansive telecom holdings in Africa; Isabel dos Santos, a citizen of Angola, has been living in Europe but retains assets in Angola—although they were recently frozen by a court in Angola.) We calculated net worths using stock prices and currency exchange rates from the close of business on Friday, January 10, 2020. To value privately held businesses, we couple estimates of revenues or profits with prevailing price-to-sales or price-to-earnings ratios for similar public companies. Some list members grow richer or poorer within weeks—or days—of our measurement date.

– Written by Kerry A. Dolan

Africa’s Billionaires List

  1. Aliko Dangote

Net worth: $10.1 billion

Origin of wealth: Cement, sugar

Age: 62

Country: Nigeria

Residence: Lagos

Education: Al-Azhar University, Bachelor of Arts/Science

Dangote, Africa’s richest man, founded and chairs Dangote Cement, the continent’s largest cement producer. He owns nearly 85% of publicly-traded Dangote Cement through a holding company. Dangote Cement produces 45.6 million metric tons annually and has operations in 10 countries across Africa. Dangote also owns stakes in publicly-traded salt, sugar and flour manufacturing companies. Dangote Refinery has been under construction for three years and is expected to be one of the world’s largest oil refineries once complete. 

Did You Know?

Dangote’s grandfather was a successful trader of rice and oats in Kano, Nigeria’s second largest city.

Dangote told Forbes that when he was young, he bought sweets, gave them to others to sell, and he kept the profits.

2. Nassef Sawiris

Net worth: $8 billion

Origin of wealth: Construction, chemicals

Age: 58

Country:  Egypt

Residence: Cairo

Education: University of Chicago

Nassef Sawiris is a scion of Egypt’s wealthiest family. His brother Naguib is also a billionaire. Sawiris split Orascom Construction Industries into two entities in 2015: OCI and Orascom Construction. He runs OCI, one of the world’s largest nitrogen fertilizer producers, with plants in Texas and Iowa; it trades on the Euronext Amsterdam exchange. Orascom Construction, an engineering and building firm, trades on the Cairo exchange and Nasdaq Dubai. His holdings include stakes in cement giant Lafarge Holcim and Adidas; he sits on the supervisory board of Adidas.

Did You Know?

A University of Chicago graduate, he donated $24.1 million to the school in 2019 to aid Egyptian students and fund an executive education program.

Nassef Sawiris teamed up with Fortress Investment Group’s Wes Edens to purchase a majority stake in Aston Villa Football Club.

3. Mike Adenuga

Net worth: $7.7 billion

Origin of wealth: Telecom, oil

Age: 66

Country: Nigeria

Residence: Lagos

Education: Pace University, Master of Business

Adenuga, Nigeria’s second richest man, built his fortune in telecom and oil production. His mobile phone network, Globacom, is the third largest operator in Nigeria, with 43 million subscribers. His oil exploration outfit, Conoil Producing, operates six oil blocks in the Niger Delta. Adenuga got an MBA at Pace University in New York, supporting himself as a student by working as a taxi driver. He made his first million at age 26 selling lace and distributing soft drinks.

4. Nicky Oppenheimer

& family

Net worth: $7.7 billion

Origin of wealth: Diamonds

Age: 74

Country: South Africa

Residence: Johannesburg

Education: Oxford University Christ Church, Master of Arts/Science

Oppenheimer, heir to his family’s fortune, sold his 40% stake in diamond firm DeBeers to mining group Anglo American for $5.1 billion in cash in 2012. He was the third generation of his family to run DeBeers, and took the company private in 2001. For 85 years until 2012, the Oppenheimer family occupied a controlling spot in the world’s diamond trade. In 2014, Oppenheimer started Fireblade Aviation in Johannesburg, which operates chartered flights with its fleet of three planes and two helicopters. He owns at least 720 square miles of conservation land across South Africa, Botswana and Zimbabwe.

Did You Know?

Oppenheimer owns Tswalu Kalahari Reserve, the largest private game reserve in South Africa.

Oppenheimer is a sports fan and plays squash, golf and cricket. Notepads in his office read: “Things I must do before cricket”.

5.Johann Rupert & family

Net worth: $6.5 billion

Origin of wealth: Luxury goods

Age: 69

Country: South Africa

Residence: Cape Town

Rupert is chairman of Swiss luxury goods firm Compagnie Financiere Richemont. The company is best known for the brands Cartier and Montblanc. It was formed in 1998 through a spinoff of assets owned by Rembrandt Group Limited (now Remgro Limited), which his father Anton formed in the 1940s. He owns a 7% stake in diversified investment firm Remgro, which he chairs, as well as 25% of Reinet, an investment holding co. based in Luxembourg. In recent years, Rupert has been a vocal opponent of plans to allow fracking in the Karoo, a region of South Africa where he owns land.

Did You Know?

He also owns part of the Saracens English rugby team and Anthonij Rupert Wines, named after his deceased brother.

Rupert says his biggest regret was not buying half of Gucci when he had the opportunity to do so for just $175 million.

6.Issad Rebrab & family

Net worth: $4.4 billion

Origin of wealth: Food

Age: 76

Country: Algeria

Residence: Algiers

Issad Rebrab is the founder and CEO of Cevital, Algeria’s biggest privately-held company. Cevital owns one of the largest sugar refineries in the world, with the capacity to produce 2 million tons a year. Cevital owns European companies, including French home appliances maker Groupe Brandt, an Italian steel mill and a German water purification company. After serving eight months in jail on charges of corruption, Rebrab was released on January 1, 2020. He denies any wrongdoing.

Did You Know?

Rebrab is the son of militants who fought for Algeria’s independence from France.

Cevital helped finance a biopic on Algerian resistance hero Larbi Ben M’hidi, who was executed by the French in 1957.

7.Mohamed Mansour

Net worth: $3.3 billion

Origin of wealth: Diversified

Age: 71

Country: Egypt

Residence: Cairo

Education: Auburn University, Master of Business Administration

Mansour oversees family conglomerate Mansour Group, which was founded by his father Loutfy (D.1976) in 1952 and has 60,000 employees. Mansour established General Motors dealerships in Egypt in 1975, later becoming one of GM’s biggest distributors worldwide. Mansour Group also has exclusive distribution rights for Caterpillar equipment in Egypt and seven other African countries. He served as Egypt’s Minister of Transportation from 2006 to 2009 under the Hosni Mubarak regime. His brothers Yasseen and Youssef, who share ownership in the family group, are also billionaires; his son Loutfy heads private equity arm Man Capital.

8.Abdulsamad Rabiu

Net worth: $3.1 billion

Origin of wealth: Cement, sugar

Age: 59

Country: Nigeria

Rabiu is the founder of BUA Group, a Nigerian conglomerate active in cement production, sugar refining and real estate. In early January 2020, Rabiu merged his privately-owned Obu Cement company with listed firm Cement Co. of Northern Nigeria, which he controlled. The combined firm, called BUA Cement Plc, trades on the Nigerian stock exchange; Rabiu owns 98.5% of it. Rabiu, the son of a businessman, inherited land from his father. He set up his own business in 1988 importing iron, steel and chemicals.

9.Naguib Sawiris

Net worth: $3 billion

Origin of wealth: Telecom

Age: 65

Country: Egypt

Residence: Cairo

Education: Swiss Federal Polytechnical Institute, Master of Science; Swiss Federal Polytechnical Institute, Bachelor of Arts/Science

Naguib Sawiris is a scion of Egypt’s wealthiest family. His brother Nassef is also a billionaire. He built a fortune in telecom, selling Orascom Telecom in 2011 to Russian telecom firm VimpelCom (now Veon) in a multibillion-dollar transaction. He’s chairman of Orascom TMT Investments, which has stakes in a major asset manager in Egypt and an Italian internet company, among others. Family holding La Mancha has stakes in Evolution Mining, Endeavour Mining and Golden Star Resources, which operate gold mines in Africa and Australia. Sawiris is a majority owner in Euronews. He’s also developed a luxury resort called Silversands in Grenada.

Did You Know?

Sawiris helped found The Free Egyptians, a liberal political party, at the onset of Egypt’s uprisings in 2011. 

In 2015, he offered to buy a Greek or Italian island to house Syrian refugees, but Greece and Italy turned him down.

10.Patrice Motsepe

Net worth: $2.6 billion

Origin of wealth: Mining

Age: 57

Country: South Africa

Residence: Johannesburg

Motsepe, the founder and chairman of African Rainbow Minerals, became a billionaire in 2008 – the first black African on the Forbes list. In 2016, he launched a new private equity firm, African Rainbow Capital, focused on investing in Africa. Motsepe also has a stake in Sanlam, a listed financial services firm, and is the president and owner of the Mamelodi Sundowns Football Club. He became the first black partner at law firm Bowman Gilfillan in Johannesburg, and then started a contracting business doing mine scut work. In 1994, he bought low-producing gold mine shafts and later turned them profitable.

11. Koos Bekker

Net worth: $2.5 billion

Origin of wealth: Media, investments

Age: 67

Country: South Africa

Residence: Cape Town

Education: Columbia Business School, Master of Business Administration; University of Witwatersrand, LLB

Bekker is revered for transforming South African newspaper publisher Naspers into an ecommerce investor and cable TV powerhouse. He led Naspers to invest in Chinese Internet and media firm Tencent in 2001 – by far the most profitable of the bets he made on companies elsewhere. In 2019, Naspers put some assets into two publicly-traded companies, entertainment firm MultiChoice Group and Prosus, which contains the Tencent stake. It sold a 2% stake in Tencent in March 2018, its first time reducing its holding, but stated at the time it would not sell again for three years. Bekker, who retired as the CEO of Naspers in March 2014, returned as chairman in April 2015.

Did You Know?

His Babylonstoren estate, nearly 600 acres in South Africa’s Western Cape region, features architecture dating back to 1690, a farm, orchard and vineyard and more.

Over the summer of 2015, he sold more than 70% of his Naspers shares.

12.Yasseen Mansour

Net worth: $2.3 billion

Origin of wealth:  Diversified

Age: 58

Country: Egypt

Residence: Cairo

Education: George Washington University,

Bachelor of Arts/Science

Mansour is a shareholder in family-owned conglomerate Mansour Group, which was founded by his father Loutfy (d.1976) in 1952. Mansour Group is the exclusive distributor of GM vehicles and Caterpillar equipment in Egypt and several other countries. His brothers Mohamed and Youssef are also billionaires and part owners of Mansour Group. He’s chairman of Palm Hills Developments, one of Egypt’s biggest real estate developers.

Did You Know?

Mansour Group is the sole franchisee of McDonald’s in Egypt, as well as the distributor of Gauloises cigarettes.

13.Isabel dos Santos

Net worth: $2.2 billion

Origin of wealth: Investments

Age: 46

Country: Angola

Education: King’s College London, Bachelor of Arts/Science

Dos Santos is the oldest daughter of Angola’s longtime former president, Jose Eduardo dos Santos, who stepped down in fall 2017. Her father made her head of Sonangol, Angola’s state oil firm, in June 2016, but Angola’s new president removed her from that role in November 2017. Forbes research found that while Isabel’s father was president, she ended up with stakes in Angolan companies including banks and a telecom firm. She owns shares of Portuguese companies, including telecom and cable TV firm Nos SGPS. A spokesperson for Isabel told Forbes that she “is an independent business woman and a private investor representing solely her own interests.” In December 2019, an Angolan court issued an order freezing her stakes in Angolan companies, part of a suit about funds she owes to the state oil firm.

Did You Know?

Isabel dos Santos is nicknamed “the princess” in Angola.

Santos’ mother, Tatiana Kukanova, met her father while he was a student in Azerbaijan. The couple later divorced.

14.Youssef Mansour

Net worth: $1.9 billion

Origin of wealth: Diversified

Age: 74

Country: Egypt

Residence: Cairo

Education: Auburn University, Master of Business Administration; North Carolina State University, Bachelor of Science in Engineering

Mansour is chairman of family-owned conglomerate Mansour Group, which was founded by his father Loutfy (d.1976) in 1952. Mansour Group is the exclusive distributor of GM vehicles and Caterpillar equipment in Egypt and several other countries. He oversees the consumer goods division, which includes supermarket chain Metro, and sole distribution rights for L’Oreal in Egypt. Younger brothers Mohamed and Yasseen are also billionaires and part owners of Mansour Group.

Did You Know?

Former Egypt President Gamal Abdel Nasser nationalized his father’s original cotton trading business.

Mansour is a founding member of the American Egyptian Chamber of Commerce.

15. Aziz Akhannouch

& family

Net worth: $1.7 billion

Origin of wealth: Petroleum, diversified

Age: 59

Country: Morocco

Residence: Casablanca

Education: Universite de Sherbrooke, Master of Business Administration

Aziz Akhannouch is the majority owner of Akwa Group, a multibillion-dollar conglomerate founded by his father and a partner, Ahmed Wakrim, in 1932. It has interests in petroleum, gas and chemicals through publicly-traded Afriquia Gaz and Maghreb Oxygene. Akhannouch is Morocco’s Minister of Agriculture and Fisheries and the president of a royalist political party.

Did You Know?

His wife Salwa Idrissi runs her own company, which has franchises for Gap, Gucci and Ralph Lauren in Morocco.

16.Mohammed Dewji

Net worth: $1.6 billion

Origin of wealth:  Diversified

Age: 44

Country: Tanzania

Residence: Dar es Salaam

Mohammed Dewji is the CEO of MeTL, a Tanzanian conglomerate founded by his father in the 1970s. MeTL is active in textile manufacturing, flour milling, beverages and edible oils in eastern, southern and central Africa. MeTL operates in at least six African countries and has ambitions to expand to several more. Dewji, Tanzania’s only billionaire, signed the Giving Pledge in 2016, promising to donate at least half his fortune to philanthropic causes. Dewji was reportedly kidnapped at gunpoint in Dar es Salaam, Tanzania, in October 2018 and released after nine days.

Did You Know?

Dewji retired from Tanzania’s parliament in early 2015 after completing two terms.

Dewji, who is known as Mo (short for Mohammed), launched Mo Cola several years ago to compete with Coca Cola.

17.Othman Benjelloun

& family

Net worth: $1.4 billion

Origin of wealth: Banking, insurance

Age: 87

Country: Morocco

Residence: Casablanca

Education: Ecole Polytechnique de Lausanne, Diploma

Benjelloun is CEO of BMCE Bank of Africa, which has a presence in more than 20 African countries. His father was a shareholder in RMA Watanya, a Moroccan insurance company; Benjelloun built it into a leading insurer. Through his holding company FinanceCom, he has a stake in the Moroccan arm of French telecom firm Orange. He inaugurated in 2014 a $500 million plan to build the 55-story Mohammed VI Tower in Rabat. It will be one of the tallest buildings in Africa. FinanceCom is part of a project to develop a multibillion-dollar tech city in Tangiers that is expected to host 200 Chinese companies.

Did You Know?

He co-owns Ranch Adarouch, one of the biggest cattle breeders in Africa.

Benjelloun and his wife received the David Rockefeller Bridging Leadership Award for building schools in rural Morocco in 2016.

18.Michiel Le Roux

Net worth: $1.3 billion

Origin of wealth: Banking

Age: 70

Country: South Africa

Residence: Stellenbosch

Le Roux of South Africa founded Capitec Bank in 2001 and owns about an 11% stake. The bank, which trades on the Johannesburg Stock Exchange, targets South Africa’s emerging middle class. He served as chairman of the board of Capitec from 2007 to 2016 and has continued on as a board member. Le Roux previously ran Boland Bank, a small regional bank in Cape Town’s hinterland.

Did You Know?

The bank has more than 800 branches and over 13,000 employees.

Fellow South African Jannie Mouton’s PSG Group owns a 30% stake in Capitec Bank.

19.Strive Masiyiwa

Net worth: $1.1 billion

Origin of wealth: Telecom

Age: 58

Country: Zimbabwe

Residence: London

Education: University of Wales, Bachelor of Engineering

Masiyiwa overcame protracted government opposition to launch mobile phone network Econet Wireless Zimbabwe in his country of birth in 1998. He owns just over 50% of the publicly-traded Econet Wireless Zimbabwe, which is one part of his larger Econet Group. Masiyiwa also owns just over half of private company Liquid Telecom, which provides fiber optic and satellite services to telecom firms across Africa. His other assets include stakes in mobile phone networks in Burundi and Lesotho, and investments in fintech and power distribution firms in Africa. He and his wife Tsitsi founded the Higherlife Foundation, which supports orphaned and poor children in Zimbabwe, South Africa, Burundi and Lesotho.

Did You Know?            

After studying at university in Britain, Masiyiwa worked at ZPTC, Zimbabwe’s phone company.

He left ZPTC to start an engineering services firm, then sold it and founded Econet Wireless Zimbabwe, but had to battle the government in court for years

20.Folorunso Alakija

Net worth: $1 billion

Origin of wealth: Oil

Age: 69

Country: Nigeria

Residence: Lagos

Folorunso Alakija is vice chair of Famfa Oil, a Nigerian oil exploration company with a stake in Agbami Oilfield, a prolific offshore asset. Famfa Oil’s partners include Chevron and Petrobras. Alakija’s first company was a fashion label whose customers included the wife of former Nigerian president Ibrahim Babangida. The Nigerian government awarded Alakija’s company an oil prospecting license in 1993, which was later converted to an oil mining lease. The Agbami field has been operating since 2008; Famfa Oil says it will likely operate through 2024.


What It’s Like Meeting Africa’s Richest Man

 FORBES AFRICA journalist Peace Hyde says she first interviewed Aliko Dangote in Nigeria about three years ago for the popular FORBES AFRICA show, My Worst Day With Peace Hyde, airing on CNBC Africa, and has since had the privilege of meeting and speaking with him several times at both official and private functions.

“Dangote is someone who is extremely focused and driven with a bullish passion for Africa. For him, the goal is to dream as big and as grandiose as you can when it comes to the future of Africa because he believes, we have the human capital and resources to transform our continent. Everything is possible in his mind. His approach to business is testament to this fact.”

The largest employer in Africa’s most populous economy, he is also seen as a stabilizing force within the economies of several countries across the African continent. His story, however, has not been without failure.

“Dangote has had his fair share of ups and downs. But his advice to young entrepreneurs is having the ability to delay gratification and work hard through tough times so they can enjoy the fruits of their labor at a later date,” says Hyde.

Through the Dangote Foundation, which has the objective of reducing the number of lives lost to malnutrition and disease as well as combating Severe Acute Malnutrition (SAM) in children, thousands of children have been saved from the brink of death.

Dangote is also known as a man of few words. “I have seen him spend an entire afternoon answering questions about his business to a room of MBA graduates and proceeding to take pictures with everyone before leaving.

“You will not find any of the obvious trappings of wealth like flashy cars or a big entourage with him and he takes the time to speak to anyone who approaches him at a function,” adds Hyde.

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Arts

Can Diddy’s Ciroc Recipe Work On Alkaline Water?

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The first time Sean “Diddy” Combs took a sip of Aquahydrate alkaline water—given to him by pal Mark Wahlberg at a Las Vegas boxing match in the early 2010s—he found it to be an ideal antidote for evenings spent consuming adult beverages.

“I went out that night and had a Vegas night, and I woke up and had a Vegas morning,” Diddy told me in 2015. “I drank two of the [Aquahydrate] bottles and it was, like, the best tasting water that I’ve tasted. And it really, honestly helped me recover.”

Diddy became the face of the company alongside Wahlberg shortly thereafter, and the pair invested $20 million in Aquahydrate over the years while billionaire Ron Burkle’s Yucaipa added another $27 million.

READ MORE | Hip-Hop’s Next Billionaires: Richest Rappers 2019

They aren’t the only ones with lofty ambitions for the brand: last week the Alkaline Water Co., the publicly-traded purveyor of competitor Alkaline88, bought Aquahydrate in an all-stock deal that valued the latter at about $50 million.

For Diddy, who ranks No. 4 on our recently-released list of hip-hop’s top earners and boasts a net worth of $740 million, alkaline water holdings are just a drop in his financial bucket. His Diageo-backed Ciroc vodka—and its myriad flavors, from Red Berry to Summer Watermelon—is responsible for the lion’s share of his wealth. But it’s clear he thinks alkaline water, flavored variants included, could swell his portfolio. So do his new partners.

Diddy
CRAIG BARRITT AND ALEXANDER TAMARGO/GETTY IMAGES. DESIGN: NICK DESANTIS/FORBES

“You put both these brands under one public company, it makes a ton of sense,” says Aaron Keay, Alkaline’s chairman, of the Aquahydrate deal. “We see synergies on distribution, we see cost-savings on cost of goods. On production, on logistics, on staffing. … And we don’t see both brands actually then competing for the same target market.”

In the past, flavored water has enriched investors including some of Diddy’s hip-hop world comrades. A little over a decade ago, 50 Cent famously took Vitaminwater equity in lieu of stock as payment for his endorsement—and walked away with some $100 million when Coca-Cola bought its parent company for $4.1 billion in 2007.

A ten-figure valuation for an alkaline water company seems an outlandish target even for the notoriously bombastic Diddy. But Keay notes Alkaline clocked $33 million in revenues over the past fiscal year and had been expecting $48 million in 2020; now, with Aquahydrate on board, he projects closer to $60-$65 million. That compares favorably to Core Water, which was doing some $80 million as of last year before getting acquired.

“For two or three years, Core Water was just another clear water,” says Keay. “Then they added about a half dozen flavors. Sales doubled. They got bought for $500 million. I mean, for us, $500 million would be a big number off of where our market cap is right now.”

Diddy appears to be an ideal ally in achieving that goal. With Ciroc, once a middling vodka in Diageo’s roster, he was able to articulate importance of the brand’s defining trait: it was made from grapes, not grains (never mind that this might technically disqualify it from being considered a vodka). His contention, according to Stephen Rust, Diageo’s president of new business and reserve brands, is that grapes are simply sexier than potatoes.

“One of his favorite things [to say] is, ‘If you can have a vodka that comes from a history of winemaking, why would you do that versus the history of coming from potatoes?’” Rust explained in an interview for my book, 3 Kings: Diddy, Dr. Dre, Jay-Z, And Hip-Hop’s Multibillion-Dollar Rise. “That’s Sean.”

With alkaline water, Diddy has demonstrated a similar knack for sizing up a product and extracting an elemental notion that passes muster with consumers (if not necessarily scientists). If “you’re full of acid,” Diddy once explained to me, you need to “get your body leveled out.”

Vodka and water, of course, are two very different products, and the same tactics won’t necessarily translate from one business to another. Flavored water itself seems to have been over-carbonated of late, as the recent struggles of brands like La Croix show; Alkaline’s shares have slumped this year as well.

Perhaps that’s why Alkaline is looking beyond its flagship bottled water business. Future plans call for a move towards cans in a nod to environmentally-conscious customers, as well as expansion into the nascent CBD-infused beverage space. Keay figures Diddy and Wahlberg, along with fellow celebrity investor Jillian Michaels, should provide a boost across the board.

“Once the FDA makes a ruling about how CBD is going to be distributed through those chains and channels, those guys are going to want trusted brands, brands that they know already have a consumer following,” says Keay. “And that was another big reason why it made sense to bring [Diddy, Wahlberg and Michaels] in, because it’s only going to help.”

Zack O’Malley Greenburg; Forbes

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Arts

Kanye West’s Second Coming: Inside The Billion-Dollar Yeezy Empire

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You know when Kanye West is coming. His matte-black Lamborghini SUV rumbles up his gated driveway on the outskirts of Los Angeles like an earthquake, and when he steps out, in a white T-shirt and dark sweats, the obsessiveness kicks in immediately.

First, there’s the house: The lushly landscaped exterior of the property he shares with his wife, Kim Kardashian West, and their four children (North, Saint, Chicago and Psalm) serves as stark contrast to the unadorned alabaster walls within. Nearly every surface is a monastic shade of white. The floors are made of a special Belgian plaster; if scuffed, the delicate material can be repaired only by a crew flown in from Europe. “The house was all him,” Kardashian West later tells me. “I’ve never seen anyone that pays such attention to detail.” 

As I step into the foyer, a handler asks me to wrap my black-and-gray Air Jordan high-tops in little cloth booties. To my left is West’s library, its shelves stacked with the likes of Alexander McQueen: Savage Beauty and Takashi Murakami: Lineage of Eccentrics. He fiddles with the positioning of a few books that seem off-kilter. Settling into an armchair opposite me, he surveys his interviewer closely. “The first shoe I remember sketching was the Jordan One that you’re wearing right now,” says West, 42. “God does have a way of lining things up.”

West’s precision turned him into one of the world’s most popular musicians. “He went and executed it to another level,” says DJ Khaled, who has spent time with West in the studio and joins him on this year’s Celebrity 100 list of the world’s highest-paid entertainers. But as with Michael Jordan in the 1990s, the key to West’s wealth stems from sneakers. His Yeezy shoe line, which he launched with Nike in 2009 and then brought to Adidas in 2013, has the 34-year-old Jordan empire in its sights, in terms of both cultural clout and commercial prowess. The Jordan line does approximately $3 billion in annual sales; West’s upstart is expected to top $1.5 billion in 2019 and growing.

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As with the floor and the booties and the book positions, West fixates over sneaker details; he idolizes Steve Jobs, preferring a limited, carefully chosen number of products with an endless array of colorways. The iPod in West’s world: the ubiquitous, chunky-bottomed Yeezy Boost 350s, which come in dozens of varieties of the same shoe and account for the bulk of Yeezy’s sales. “I am a product guy at my core,” West says. “To make products that make people feel an immense amount of joy and solve issues and problems in their life, that’s the problem-solving that I love to do.”

The obsessiveness is unrelenting. When Forbes shot West for a possible cover, he insisted on wearing a black hoodie. Urged to return the next day to try again, West obliged—wearing the same hoodie. He’s been known to edit albums days after they’ve already been released. And when he didn’t feel I was properly absorbing the religious influence on his business (coming from the guy who calls himself Yeezus and is working on an album tentatively titled Yandhi), he called my editor impromptu on a Saturday evening to hammer the point some more.

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Whatever, it’s working. Mostly because of the shoes, Forbes pegs his pretax income at $150 million over the past 12 months; his team insists the number is even higher, partly due to his Yeezy apparel. In any case, it’s by far the best stretch of his career, good for No. 3 on our Celebrity 100 list.

Rewind to three years ago, when West claimed to be $53 million in debt, just before canceling the back of a lucrative arena tour and checking into a Los Angeles hospital for over a week with symptoms of sleep deprivation and temporary psychosis. West credits his turnaround to religious beliefs (“being in service to Christ, the radical obedience”)—and, on occasion, to being bipolar. Call him creative, call him chaotic—just don’t call him crazy. Like some entrepreneurs with conditions like ADHD and Asperger’s, he sees his diagnosis not as a hindrance but as a “superpower” that unlocks his imagination.

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“ ‘Crazy’ is a word that’s not gonna be used loosely in the future,” West says. “Understand that this is actually a condition that people can end up in, be born into, driven into and go in and out. And there’s a lot of people that have been called that ‘C’ word that have ended up on this cover.”

West’s design obsession dates back as far as his passion for music. Born in Atlanta and raised in Chicago, he often got in trouble as a middle schooler for sketching sneakers in class. When West’s mother, a college professor, took him to see the Japanese cyberpunk flick Akira, he found inspiration in the film’s shapes and color palettes; he also remembers his father, a former Black Panther, taking him to auto shows, where he became obsessed with the Lamborghini Countach. “There’s a little bit of Lamborghini in everything I do,” West says. “Yeezy is the Lamborghini of shoes.”

Meticulousness served West in his music career, which took off when he caught on as a producer for Jay-Z’s Roc-A-Fella Records after dropping out of college. He masterminded the sonic skeleton of Jay-Z’s seminal 2001 album, The Blueprint. When West launched as a solo artist two and a half years later, he designed something genre-bending, his early work peppered with Marvin Gaye and Daft Punk samples; West recorded with Coldplay and toured with U2. In contrast to the snarling materialism put forth by the dominant rappers of the day, West presented a more vulnerable sort of protagonist, with three albums featuring higher-education themes. Gone were tales of drug dealing and street skirmishes; in their place were reflections on dental surgery, racial injustice and working at the Gap, punctuated by a witty swagger.

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His fame gave him a chance to return to his first love: sneakers. In 2007, he created a shoe for the Japanese apparel company A Bathing Ape, complete with a teddy bear logo that appeared on some of his early covers. (Find one of those shoes today and you’ll net several thousand dollars.) It was a start, and he cultivated a cadre of fashion-industry friends like Hedi Slimane, who has served as creative director at Dior Homme and Yves Saint Laurent. “You’re going to do something really strong in shoes,” West remembers the designer telling him. That sort of encouragement gave West the confidence to whip out a notepad when he found himself on a plane with Nike CEO Mark Parker shortly thereafter. Says West: “When he saw me sketch, he said, ‘This guy’s interesting, let’s do a shoe with him.’ ”

Yeezy was born (a shortening of the “Kanyeezy” nickname Jay-Z gave him in the intro to a 2003 song). West says Parker put him in the room with Air Jordan designer Tinker Hatfield, and by mid-2008, West was rocking prototypes of his own Air Yeezy high-top onstage, with the genuine article arriving in 2009. Hip-hop has connected with footwear almost since the genre was born, from Run-D.M.C.’s Adidas shell toes in the mid-1980s to Jay-Z and 50 Cent’s Reeboks two decades later. West was the first to do it at Nike on the level of an NBA superstar.

Says analyst John Kernan of investment bank Cowen, “What he’s done in footwear has been truly transcendent.”

At the same time that West’s business interests were shifting, he began changing too. His mother died in a 2007 cosmetic procedure gone wrong; the following year, he split with his fiancée Alexis Phifer. On his album, 808s and Heartbreak, he ditched rap for heavily autotuned singing. 

Then came the bizarre. He hopped onstage to interrupt Taylor Swift’s 2009 acceptance speech for Best Female Video at the MTV VMA ceremony, insisting that Beyoncé should have won the award instead; the episode generated such an intense backlash that he cancelled his planned arena tour with Lady Gaga and moved to Italy to intern for Fendi. When he returned from his European sojourn, his previous praise for the Creator was superseded by an insistence on his own holiness, particularly his 2013 album Yeezus, where he declared flatly, “I am a god.”

West kicked off 2016 by unleashing flurries of Tweets, asserting that he was $53 million in debt before asking Mark Zuckerberg for $1 billion to help fund his creative ideas. Then he embarked on his most ambitious tour yet—one that featured him holding forth atop a platform that looked like something out of Close Encounters of the Third Kind, hovering about a dozen feet above the crowd. West’s rants grew more and more unusual as the tour continued. In one performance, he suggested Jay-Z might be trying to have him assassinated. The year ended with West hospitalized after the tour cancelation. His first appearance after? A pilgrimage to Trump Tower, where he posed with the president-elect (and turned off a lot of his core audience). 

His career, however, has proved antic-proof. And he has channeled his intensity profitably, particularly when it comes to sneakers. As sales blossomed at Nike, particularly after the Air Yeezy II release in 2012, West felt that the company was treating him like just another celebrity dabbler. “It was the first shoe to have the same level of impact as an Air Jordan, and I wanted to do more,” West says. “And at that time Nike refused to give celebrities royalties on their shoes.” (Nike declined to comment for this story; two other sources familiar with the arrangement also say he wasn’t being paid royalties.)

West, however, had always insisted on maintaining ownership of his brand. And when Adidas executives caught wind of West’s dissatisfaction, they invited him to Germany. With the help of Scooter Braun, who started a stint comanaging West around the same time, they created what appears to be an unprecedented deal: a 15% royalty on wholesale, according to sources familiar with the deal, plus a marketing fee. For comparison, Michael Jordan is thought to get royalties closer to 5%, though he doesn’t own his brand.

In 2015, West debuted his first “Yeezy Season,” a showcase for his clothing and sneakers. The next year he leveraged his new album to create a launch party for both sneakers and song, at a sold-out Madison Square Garden. His biggest breakthrough: the 350. Marrying his eye for design with Adidas’ Boost technology, which purports to efficiently return energy to runners, West turned trainers into high fashion and made low-top sneakers cool again. The 350’s aggressive stance, leaning forward as if to challenge any foe to a footrace, suddenly had scores of people willing to cough up $200 for a pair of running shoes. Adidas has never released Yeezy’s numbers, but in 2016 West let it slip that his sneakers were selling out surprise 40,000-pair drops in minutes.

Kanye West in Los Angeles
Kanye WestJAMEL TOPPIN FOR FORBES

His wife—West and Kardashian married in Florence in 2014—gets an assist here, opening up West to her family’s hundreds of millions of social media followers (they routinely sport his Yeezy shoes and apparel). 

The partnership works both ways. Kardashian West seeks out her husband’s opinion on all of her projects, from the Kim Kardashian: Hollywood mobile game to her recent shapewear line. When she brought him mockups for the latter, West wasn’t impressed. He sat down and drafted a new logo before personally redesigning the packaging. In any case, West’s advice isn’t limited to the creative side. “He’s just taught me as a person to never compromise and to really take ownership,” says Kardashian West, who ranks No. 26 on The Celebrity 100. “Before, I was really the opposite. I would throw my name on anything.”

Given their hectic schedules, Kardashian West and West often trade ideas at what he calls “bedtime true-crime story meetings,” where she watches police procedurals while he shows her mockups.

“I’m just blessed through the grace of God to go from tweeting at Mark Zuckerberg” to ask for money, West says, to where he is today. He can laugh at himself a little now. “People wondered, ‘Why did you tweet at Mark Zuckerberg?’ And I was like, ‘Hey, I heard he was looking for aliens.’ ”

Speaking of aliens, if you really want to see how West’s creative process works, then a visit to the Star Wars planet of Tatooine is necessary. Inspired by Luke Skywalker’s childhood home, West has been working with a team to design prefabricated structures that sport the same austere aesthetic, with the goal of deploying them as low-income housing units. Just after midnight he ushers me into his Lamborghini for an impromptu visit, barreling back down the road with Bach blasting on the sound system. After about 15 minutes, we arrive at a bungalow in the woods.

A team of four is still clattering away on Apple laptops inside, ahead of a meeting the following morning in San Francisco with potential investors. Around them, the walls are plastered with written notes and sketches. West peers over the shoulders of his charges, instructing them to change a font here or brighten a picture there.

“He pushes people to do their best and pushes people even outside of their comfort zone, which really helps people grow,” Kardashian West says, citing West’s relationship with Louis Vuitton designer and Off-White label founder Virgil Abloh. 

After a half hour or so, West appears satisfied with the state of the presentation and motions me toward a back door. We stroll out into the chilly, starless night, and I follow him up a dirt path deeper into the woods for several minutes until he stops at a clearing and looks up, wordless. There, with the hazy heft of something enormous and far away, stand a trio of structures that look like the skeletons of wooden spaceships. They’re the physical prototypes of his concept, each oblong and dozens of feet tall, and West leads me inside each one. 

He tells me they could be used as living spaces for the homeless, perhaps sunk into the ground with light filtering in through the top. We stand there in silence for several minutes considering the structures before walking back down to his lurking Lamborghini and zooming off into the night.

Kanye West with yeezy shoes
JAMEL TOPPIN FOR FORBES

For a company that makes Lamborghini-inspired sneakers, Yeezy’s headquarters are remarkably nondescript: a blocky blue-and-gray building just off the main drag in Calabasas. It’s not far from where he’s been hosting his recent Sunday Services—gatherings where popular songs are repurposed with Christian themes by gospel choirs and famous guests from Katy Perry to Dave Chappelle.

When I meet up with West after his return from San Francisco, he doesn’t even mention the investor meeting—already fixated on something else enormous out back. In the parking lot behind his office, laid out in concentric circles, is the sum total of West’s creative output at Adidas: a trove of sneaker prototypes baking in the midday sun, variants of his 350s in a rainbow ranging from blood orange to creamy pistachio alongside a few yet-to-be-released gems like the almost triangular Yeezy basketball shoe (which, he adds almost proudly, has yet to be approved by the NBA—echoing the days when the league fined Michael Jordan for wearing his eponymous sneakers because they violated uniform rules).

West scoops up a 1050 Vortex Boot, which debuted in prototype form at Madison Square Garden in 2016. “I just looked at this line right here,” he says, motioning to a thin strip of blue masking tape on the sole. “I’m going to make this part of the boot. The inside of this will be blue. And I just go with the flow.”

There are about 1,000 pairs laid across the lot, it seems, but when I ask West for the exact tally, he seems almost offended at the notion of reducing his creations to numerals. “You can’t calculate love,” he explains. “If you get a surprise cake from your grandmother, and you didn’t know she was in town, do you start asking her about the batter and specifically the frosting?” 

Grandmother?

“These things are made to bring incalculable joy,” he continues. “So to ask me to somehow translate this to numbers is to ask your grandmother exactly what the recipe of the cake was.”

West claims to not be a “numbers guy,” but he has reached an inflection point where someone in the Yeezy orbit needs to be. His brand built its following through its limited releases and surprise drops, much like Air Jordan. The latter, according to NPD retail analyst Matt Powell, has lost a bit of its cachet in recent years as Nike moved to fill declining volume in other areas of business with its iconic sub-brand. “What makes celebrity products sell so well is scarcity,” he says. “So if they make it too broadly available, I think it crashes the business model.”

Adidas seems to be aware of this. “We are continuing to manage volumes in a very disciplined manner so that for 2019 Yeezy sales will not make up a significant share of Adidas’ overall expected sales growth,” says the company’s chief executive, Kasper Rørsted. “Not because brand heat is decreasing, but because we have a disciplined approach to managing volumes and product lifecycles.”

In other words, he’s not willing to chase sales at the expense of prestige, instead continuing to build buzz with surprise drops. The May release of the glow-in-the-dark 350 v2 sold out immediately, even though it rolled out at 6 a.m. in some countries. In June, customers lined up around blocks in Moscow to get a reflective version of a sneaker that had already debuted in the U.S. There are even more far-out concepts in the works, including a shoe made out of algae that will biodegrade completely over time in landfills—or almost immediately if sprayed with a certain type of bacteria.

Perhaps most impressively, West still owns 100% of Yeezy. This is the reason he became a centimillionaire many times over much earlier in his life than Jordan. Given Yeezy’s success, West should eventually join the NBA legend—alongside sister-in-law Kylie Jenner and mentor Jay-Z—in achieving billionaire status, though the never-modest West would claim he’s there already. And then some. “We’ve yet to see all of the beauty that would be manifested through this partnership,” West says. “We’ve only experienced a small glimmer of light.”

Additional reporting by Monica Mercuri and Natalie Robehmed.

-Zack O’Malley Greenburg; Forbes Staff

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