the billion-dollar flywheel

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Hey! Last night I watched MTV's Video Music Awards, which felt like an artifact forced into the modern era. I've recently written about the problems with award shows, but the VMAs have a deeper challenge: MTV represents a past era.

The show's most memorable moments were when MTV was pop culture, but those days are gone. The 1999 VMAs aren't walking through that door.

TikTok is the new MTV. It's time for a new award show that represents today's music landscape. To be fair, MTV did collaborate with TikTok for Trending: VMAs, but TikTok users need a show that's not related to the channel that their aunts and uncles once watched. This generation won't sit through a 3-hour cable broadcast no matter how many channels it's on.​

MTV VMAs will still live on since it's a cash cow, but there's plenty of room for a new entrant.

Today's memo covers my interview with Rick Ross, Westbrook Inc's potential acquisition, and Motown Records joint venture with NBA YoungBoy.

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new Trapital podcast: Rick Ross

When I said the biggest boss was coming on the Trapital Podcast, you knew who I was talking about.

Rozay and I talked about his new book, The Perfect Day to Boss Up. The pandemic cut off live performances—his largest revenue source at the time—and we talked about how he adapted. We broke down his 20+ partnerships, WingStop, deals he turned down, how he turned his home into a revenue-generating asset, and more.

He had a bunch of great insights. Plus, Ross is just hilarious to talk to. He had me rolling at several points. Hope you enjoy this one.

Tap in on Apple Podcasts, Spotify, or watch on YouTube.

On the Trapital Podcast, hip-hop's heavy hitters explore their ideas that helped them level up their game. Learn more here.​

Will and Jada Pinkett Smith may sell Westbrook

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According to The Hollywood Reporter, Westbrook Inc. is in talks to be acquired by former Disney execs Kevin Mayer and Tom Staggs, who also bought Reese Witherspoon's Hello Sunshine for $900 million.

Perfect time to cash in. 2021 has been prime time for studios centered around celebrity figures. In July, I wrote about how LeBron James' SpringHill Company is exploring a sale at a $750 million valuation. The potential sale is a bet on LeBron's growing influence in media, especially once his NBA career ends and he devotes more time to his media ventures. The same is true for Reese, whose book club is full of content that's bound to get optioned into TV, films, and mini-series.

For Will and Jada, this potential acquisition is a bet on their content and commerce flywheel. People see how the Smiths move. Investors would love to have a controlling stake in a hit show like Red Table Talk. When Will posted on Instagram, "I'm in the worst shape of my life," it was the catalyst for a YouTube show about his fitness journey.

Owning Westbrook Inc is a bet on Westbrook Media's FliP—fastlane IP— and its ability to deliver successful content on multiple levels.

Westbrook valuation guess? Here are recent studio numbers that made headlines:

MGM: $8.4 billion (bought by Amazon)

A24: $3 billion (rumored in Apple deal)

Hello Sunshine: $900 million (bought by Mayer and Staggs)

SpringHill Company: $750 million (rumored target price)

Given this, I expect Westbrook Inc. to land between $1 - 1.5 billion. Westbrook Inc includes both Jada and Will Smiths, plus the connections to their children Jaden and Willow Smith, and the hit series they have successfully launched.

This is the creator economy, after all! Companies have invested billions in this sector, and few content creators are bigger than the Smith family.

Read more in Trapital's, How Will and Jada Pinkett Smith Built a Content and Commerce Powerhouse.

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Why Motown linked with NBA YoungBoy's record label

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Last week, Motown entered into a global joint venture with the Louisiana rapper's record label, Never Broke Again records.

Big move for Motown. Motown's last joint venture was its 2015 deal with Quality Control Music. It's been one of the most successful major-indie label partnerships of the past decade.

QC gained distribution and infrastructure to maximize artists like Migos, City Girls, Lil' Baby, and more. Motown gained relevance with younger fans by tapping into the popular hip-hop label that's based in hip-hop's most dominant city, Atlanta. It's been a win-win.

Motown's NBA YoungBoy record label deal signals two things. First, a connection to Louisiana hip-hop. In a Billboard interview, Motown CEO Ethiopia Habtemariam said that Never Broke Again "represents the next generation in Louisiana’s legacy of ground-breaking hip-hop labels."

NBA YoungBoy hails from the state that gave us Cash Money, No Limit, Boosie, Webbie, Kevin Gates, Jay Electronica, and many more. The region is a staple of hip-hop culture. The best-case scenario is that Never Broke Again does for Louisiana hip-hop what Quality Control did in Atlanta.

The second signal is the YouTube potential. NBA YoungBoy himself is still signed to Atlantic Records, but his prolific approach to YouTube has rubbed off on his proteges like Meechy Baby and P Yungin. If Motown gains access to the next NBA YoungBoy, that's another W.

The leadership difference. The key ingredient for Quality Control Music's success is the leadership from Coach K and Pee. They have complementary skills and years of experience at the helm. Dozens of Atlanta hip-hop labels tried to do what QC has done, but few had a tandem like QC did. In a 2017 New York Times interview, Coach K said that up to 85% of his job is mentorship.​

That's what Never Broke Again record label may need to hit that same level. NBA YoungBoy's full-time job is making music and videos (plus all his legal troubles). Much of the responsibility will be on Kyle "Montana" Claiborne, who leads the label with the 21-year-old rapper.

The goal for Montana and NBA YoungBoy is to avoid the pattern that most hip-hop artists have with their imprints and record labels. Most artist-run labels become vanity projects, especially when the artist themself is signed to a different label. Never Broke Again has an opportunity to break that trend and follow the QC mold with Motown Records.

Read more in How Quality Control Music Took Over Atlanta.

Partner with Trapital to reach future customers

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Coming soon

Podcast: DJ Semtex, the author and host of Hip Hop Raised Me joined me for part 2 of our conversation on Donda, Certified Lover Boy, podcasting, his radio career, and more. Listen to part 1 on the Hip Hop Raised Me podcast here.