How Sean “Diddy” Combs created a R$5 billion empire before falling out of favor in the US

This Tuesday (1), rapper and music producer Sean “Diddy” Combs, who has been detained in the US without the right to bail since September 16, presented a new request to be released pending trial. Diddy, 54, is widely recognized as one of the most influential figures in American music history. Therefore, the five lawsuits filed against him in the last four months, alleging physical abuse, sexual violence and sex trafficking, have attracted widespread attention.
The accusations against the music mogul, as well as other celebrities, span nearly his entire career, dating back to the 1990s. Two of the five lawsuits include allegations that Diddy raped his accusers in the early 1990s, during his on Uptown Records. Diddy denied the allegations through his lawyer.
Diddy has been in the music business since 1990, when he started as an intern at Uptown Records in New York, before founding his own record label, Bad Boy Records. While he is undoubtedly most recognized and acclaimed for his musical career (taking credit for discovering big names like Notorious B.I.G., Mary J. Blige and Usher), his fortune goes beyond music, which is neither the only nor the greatest source of his wealth. He owns several commercial ventures and properties that total an estimated net worth of US$1 billion, according to a report published in 2022. It is clear that Diddy could suffer significant financial losses if any of the lawsuits go ahead.
The artist is considered one of the richest rappers of all time. In 2002, the magazine named Diddy one of the 40 richest Americans under 40. At the time, he was the founder and CEO of Bad Boy Entertainment and had an estimated net worth of US$293.7 million.
Where, exactly, did Diddy’s fortune come from? It is the result of a combination of record deals, property investments, a clothing line, partnerships with alcohol brands, acting and even cannabis-related businesses.
Music and record labels
During his musical career, Diddy has released five studio albums, two collaborative albums, one remix album and 72 singles. According to a report published by , Diddy’s record label grossed around $130 million a year at its peak.
Information from the fashion and lifestyle magazine indicates that his own music, including albums and singles, generates US$100 million in royalties. His first rap album, “No Way Out,” reached No. 1 on the Billboard 200 the week of its release, selling 561,000 copies, and received five Grammy nominations in 1998. Diddy won the Grammy for Best Rap Album that year and In September 2000, “No Way Out” was certified as a seven-times platinum album by the American Recording Industry Association for selling over 7 million copies.
His following albums were also successful. Throughout his musical career, he has partnered with other famous artists such as Rick Ross, DJ Khaled, Fat Joe, Busta Rhymes, Red Café and Fabolous.
Clothing, alcohol and cannabis
Around the time of the release of his first rap album, Diddy also launched his own clothing brand, Sean John. The brand debuted at Bloomingdale’s in New York in 1998. According to Macy’s, Sean John’s annual revenue now exceeds $525 million.
In 2004, Sean John invested in luxury brand Zac Posen and, in 2008, acquired streetwear brand Enyce, from Liz Claiborne, for US$20 million. Two years later, Sean John entered into a distribution agreement with Macy’s, making the department store the sole distributor of its sportswear.
In 2016, Diddy sold a 90% stake in Sean John to Global Brands Group, but bought it back in 2021 for $7.5 million.
Meanwhile, Diddy has also made several investments and partnerships in the alcohol and cannabis sector. In 2007, Diddy and alcoholic beverage company Diageo formed a partnership to increase exposure and sales of Ciroc vodka and DeLeón tequila. At the time, the contract provided for a 50/50 split with the company, but currently Diageo owns 100% of Ciroc and DeLeón. According to reports, Diddy is estimated to have made around $60 million annually from the deal.
With his former stage name, Puff Daddy, it’s no surprise that Diddy has also invested in the cannabis industry. In November 2022, it signed a deal worth US$185 million to acquire retail stores and cannabis production facilities in several US states, including New York, Illinois and Massachusetts, from Cresco Labs and Columbia Care, two of the biggest cannabis brands in the country.
Real Estate
Diddy owns two homes: one in Miami and one in Los Angeles. But he also owns an “extensive property portfolio” made up of multimillion-dollar homes, according to .
In 2021, he acquired an estimated $35 million oceanfront property located in Miami from Gloria and Emilio Estefan. This isn’t the first home he’s purchased in the Star Island neighborhood. In 2003, he had already purchased the house next to the Estefan property for $14.5 million, which, according to , puts Diddy “on the right path to building a complex.”
Diddy also owns a $2.7 million condominium in Miami and a $39 million mansion in Los Angeles, as well as having owned properties in New York, New Jersey and Georgia.
Operation and investment
In the early 2010s, Diddy expanded his activities and also began acting. He co-starred in the comedy film “The Worst Job in the World” (“Get Him to the Greek”) and appeared in television series such as “Entourage,” “Hawaii Five-0” and “It’s Always Sunny in Philadelphia.” Although there are no reports detailing how much Diddy earned from each of these works, “The Worst Job in the World” grossed $95.5 million in box office sales.
In 2023, Diddy announced a new online marketplace called Empower Global, whose main focus is to highlight black-owned businesses, referring to it as “Black Wall Street.”
“I always dreamed of being successful in music, being obsessed with fashion and being the greatest black serial entrepreneur of all time,” he said. Time will tell if he will be able to maintain the fruits of this success.