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50 Cent Opens Up On Founding SMS Audio, Beats, Headphone Market & More With CNBC
50 Cent's SMS Audio headphone company is one of the leaders in the growing premium headphone industry. The G-Unit mogul sit down with CNBC to talk about founding of SMS Audio headphones, Beats, headphone market and more.
Celebrity clothing lines, one of the first areas in which musicians branched out into retail, came with a sense of friendly competition. 50 said that he made the mistake of thinking that it might be the same with headphones, but he learned competition is much more aggressive in the headphone space.
"When Russell Simmons went into Phat Farm clothing, you saw Rocawear from Jay-Z, you saw Sean John from Puffy, you saw G-Unit from myself, and then numerous other companies," he said. "It showed us that you could successfully utilize the influence generated from music to market things other than music."
50 Cent officially stated, that his net worth no more than $4.4 million at the moment and that he only saw a total of $3.8 million for the 38 million albums he's sold in his career.In Forbs latest wealth reports, they placed 50's net worth at closer to $155 million.
50 basically tryn' to convince everyone, that he's not as rich as it seems, and that most of his fortune is a front to appease his hiphop lifestyle.
"It's like music videos, they say action and you see all these fancy cars but everything goes back to the dealership" 50 Cent said. 50 also claimed that most of his cars are rented, and that the jewelry he wears is borrowed from the jeweler rather than purchased.
According to the rapper he only has a few chains and three cars.
Last days news told us that 50 Cent get bankruptcy. Yes, 50 personally hasn't money and he is in large debt. But his famous brand-companies like: SMS Audio, Effen vodka and Frigo underware are still stand strong and there is no note about their large debt or some financial problems like SMS Promotion boxing co. has. It' thinking, that 50 transfer his own $155 million to his comapnies assests. for save his capital and avoid pay to his big creditors.
50 Cent's tactic is similar to Oil baron John Rockefeller's moves. When USA goverment srated battel against John Rockefeller's Standart Oil Co. with anti-monopoly law. John Rockefeller divided Standard Oil to 16 small companies. He owed managing shares in every company. And 98% of Oil market was still under his control.
50 Cent like great John Rockefeller, knows how to hustlin under the law.
According to bankruptcy documents, 50 Cent's largest debt is to Florida headphone maker Sleek Audio, who won a $18.428.257 judgement against 50 for stealing theis headphone design,some of their valuable data and trade secrets.
His second biggest creditor is Rick Ross’s baby mama Lavonia Leviston, who just snagged a $5.000.000 judgement against 50 Cent for leaking her sex tape.
Other debts include $568.304 to Reed Smith, his lawyers…
50 Cent had deal with Sleek Audio Co. for distribution their headphones. The G-Unit helmsman who invested $1 million in Sleek, was to start a line of headpones with the company. But 50 Cent founded his headphone SMS Audio co. and his new product want against 'beats by Dre' and also 'Sleek'. Sleek claimed 50 stole its design,some of their valuable data and trade secrets. and then tried marketing it on his own. Sleek50 Cent was ordered to pay $17 million to Sleek. but after 50 chose not to pay a $17 million, his bank account was frozen.
50 Cent also lost $5 million lawsuite against Rick Ross baby mama.
According to reports, 50 claims his assets are worth between $10-50 million, but his liabilities are about the same.
In 2010 co-founder of G-Unit Sha Money XL, left G-Unit. Because after Mobb Deep's G-Unit album 'Blood Money' flopped. 50 Cent didn't invited him as co-executive producer of his third album 'Curtis' or as engineer of 'Curtis', or as beat-maker of 'Curtis'. In 2009 when Jimmy Iovin' dropped G-Unit Records, Inc. from Interscope Records. Sha Money XL understood, that it's time for find new 'home'. He signed Def Jam Records as executive directore. He wanted publish Lloyd Banks' third album H.F.M.2 under Def Jam. But 50 Cent didn't do deal with Def Jam. He signed G-Unit under EMI umbrella.
In may 25 of this year(2015) internet broke news about 50 Cent's SMS promotion boxing company was in large debt. In April 28 of this year(2015) Forbs established net worth of 5 richest rapper in hip-hop. 50 Cent took fourth position with $155 million. But it seems 50 has lack of financial intiligance, beacuse according of 'Wall Street Journal' now 50 Cent is bankrupt. In 2014 it was official report, that 50 lost $16 million, in SMS Audio company and his investment didn't bring him money back. 50 Cent's fifth album Animal Ambition had very poor sales, according to wikipedia, A.A. sold 124 000 in end of 2014. Animal Ambition come out in june 3, 2014.
In 2009 50 Cent wrote great book: 50th Law.It is informal education about business and life. But it seems 50 don't use priciples, which he describe in his business book in real life. Good luck 50, I hope your business empire come back soon.