Sean “Diddy” Combs has long been a titan in the entertainment and business worlds, known for his ventures that span from music to fashion, beverages, and beyond.
Yet, amid a storm of legal troubles and allegations, a lesser-known investment of his has come to light—his stake in Elon Musk’s social media platform, X, formerly known as Twitter.
Diddy’s Business Deals
Combs’ business empire has been built on a foundation of shrewd investments and innovative ventures. From his early days founding Bad Boy Records to his partnerships with major brands like Diageo, the parent company of Cîroc vodka and DeLeón tequila, Combs has amassed an estimated net worth of $1 billion.
Fortune has reported that Diddy’s wealth, while rooted in music, has diversified through various lucrative businesses, including Sean John, his clothing brand, which at its peak brought in over $525 million in annual revenue.
However, Combs’ financial empire is now under scrutiny due to multiple sexual assault allegations, including a high-profile lawsuit from his ex-girlfriend, Cassie. The case was settled swiftly, but the damage to Combs’ reputation.
As some brands and partners distance themselves, one mystery investment remains — his involvement with X.
On Wednesday, Aug. 21, it was revealed that Combs is among the nearly 100 investors in Musk’s X Corp. and helping Musk acquire what was then Twitter for $44 billion in October 2022.
The disclosure came as part of a lawsuit filed by former employees seeking unpaid arbitration fees after Musk’s acquisition of Twitter. The federal court’s decision to unseal the list of investors brought to light Combs’ financial interest in the platform through Sean Combs Capital, a lesser-known entity in his portfolio.
The investment in X, according to Fortune, also comes at a time when the platform has struggled with declining ad revenue, mass layoffs, and widespread criticism of Musk’s approach to free speech.
While it’s unclear how much Combs invested in X or whether he’s still an investor, any stake he has likely lost value. As of 2024, X is estimated to be worth around $19 billion, less than half of the $44 billion Musk paid for it in 2022. This sharp decline is largely due to a 60% drop in advertising revenue, along with other challenges associated with the rebranding and Musk’s management of the platform, according Dexerto.
A one point, there were concerns about the rampant racism allowed on the platform after Musk took over.
NY Times reporter and author Ryan Mac talked about a meeting with Detavio Samuels, the former CEO of Revolt, a media company founded by Combs, that confronted Musk about the ant-Black rhetoric.
A full list of investors in Elon Musk’s Twitter deal was reported yesterday. One investor name that’s raising eyebrows is Sean “Diddy” Combs.
— Ryan Mac 🙃 (@RMac18) August 22, 2024
Our book CHARACTER LIMIT has a fun lil anecdote about Diddy’s investment. During the first week of his takeover, Musk joined a call with… pic.twitter.com/QKz1hoQHe7
“As a Black man, I don’t want to walk down a neighborhood where people are whispering the N-word, whether. I hear it or not,” Samuels said in a meeting with Musk. “As you continue down the path that you’re going, I really recommend that you have conversations with this specific community and that we make sure that whatever solutions are created are solutions that make them feel safe and in a welcoming space.”
According to Mac, Musk agreed and said that the social media platform should “make people feel comfortable.”
Then Musk revealed to Samuels that Puff was an investor in his company and also his good friend, as if to shift the conversation of his accountability to the Black community.
It is unclear if Combs was aware of this conversation or had an issue with Musk about the rise of racist language on the X platform.
The platform’s rebranding and Musk’s public clashes with advertisers have only added to the challenges.
Despite these issues, Combs’s decision to remain an investor in X could be seen as a calculated risk, potentially offering him a stake in a platform that continues to be influential in public discourse, proving to his dwindling fanbase that he still is rolling in the dough. Image has always been important to Combs since his early days as a promoter and A&R at Uptown Records.
Still, in regard to his image and fortune it is not immune to the fallout from his legal troubles.
The allegations against him, which include claims of sexual violence and federal investigations, threaten to erode the wealth he has accumulated over decades. As more brands cut ties with him, the question arises whether it matters to him to work with Musk, who has a very different political outlook than he does and often look at as a pariah in the hip-hop space. And if so, keeping this investment in X a strategic move for him or if it is now a way to preserve his status in the business world?
While Combs’s legal battles continue, his financial portfolio remains diverse.
His music career, which began in the 1990s, has contributed significantly to his wealth, with Bad Boy Records generating $130 million annually at its peak, according to Business Insider.
His ventures in fashion, spirits, and cannabis have further solidified his status as a business mogul. Yet, the ongoing lawsuits could jeopardize his financial standing, particularly if they lead to significant civil lawsuit settlements or criminal charges.
In the midst of these challenges, Combs’s investment in X stands out as a bold and risky move.
For now, as his legal woes mount, Combs faces an uncertain future that will test the resilience of his business empire and his ability to navigate the turbulent waters of both the legal and business worlds.
