Feb 13, 2008

The Real Reason Why 50 Cent Starts Film Company

As all of the hip-hop sites have been reporting, G-Unit Clothing and Mark Ecko Enterprises have dissolved their 50/50 joint partnership which led to the shutting down of G-Unit Clothing and layoffs of their staff last Friday. Various sources who are already in Vegas preparing for this week's MAGIC Convention have given me a little more insight into what really went down.

Most people assumed the partnership is over because G-Unit Clothing is old and not profitable, but turns out that is not the full story. What we have seen lately with the majority of 50's businesses is a shift from corporate control to owner-control. 50 and Interscope launched G-Unit Films a couple of years back but terms left 50 splitting revenues with Interscope and without much ownership power. So what does 50 do? He launches his own film company this year that will allow him greater owner-control and a larger share of profits.

On the internet side, Interscope and other various sites were capitalizing on the growing hip-hop web scene and while a cut was provided to 50, the content and direction was not under his control nor were ad revenues. So what does he do? He launches thisis50.com, his own dedicated website that has become so profitable that he has moved people over from his label to work on the site instead.

The word with G-Unit Clothing is that while the partnership is over, it was actually time for 50 to part ways. The truth is with 50's current branding power and knowledge gained of the fashion and garment industry, he doesn't really need Ecko anymore. Just like with his film company and website, 50 plans to shift his fashion line from corporate control to owner control. As his Violator Management has said “They aren’t shutting down. They may be leaving their partner, but the G-Unit brand is a base business of $75 million annually." 50 will relaunch a new fashion line that will allow him greater creative control and financial backing for him to take a larger share of profits.

Everyone in the industry expects, and should expect a revamped clothing brand from 50 in the near future. Early plans for the clothing line include a fully integrated launch with thisis50.com and even having some of his new clothing in future movies that he produces. Pretty smart if you ask me. 50's recent moves have shown he is willing to make smart financial risks all while building his own empire that is directly controlled by himself. Bottom line, no more splitting profits with his corporate partners...this is 50...he's taking it all.


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