Jay-Z collaborated with liquor titan Bacardi in 2012 to produce the “D’Ussé” cognac brand. The brand would eventually be valued at $3 billion, making it one of the most valuable brands in the world.
According to the cooperation agreement, Jay-Z was in charge of marketing, while Bacardi was in charge of production and distribution.
According to prior reports, the purchase is based on an equal stake and a global distribution agreement.
However, the two parties became embroiled in a legal battle after Jay-Z chose a buyout on worries that Bacardi subsidiary Empire Investments Inc. was mismanaging the brand by failing to satisfy rising customer demand. The company is in charge of the cognac’s day-to-day activities.
Barcadi proposed $500 million for Jay-shares, Z’s but the rapper countered with a $1.5 billion bid for its own interest. After Barcadi won many rounds of arbitration, the rich rapper brought the case to court.
According to Bloomberg Law, Jay-Z and his partners have reached an agreement about their multibillion-dollar cognac joint venture, D’Usse. The rapper surrendered his majority ownership in the D’USSÉ Cognac brand for $750 million, according to a statement announcing the settlement.
An affiliate of Barcadi bought Jay-Z’s 50% stake in the cognac company, giving Bacardi ownership of 75.01% of the rest of the business. The statement further adds that the music mogul will retain “a significant ownership stake” through his company, SCLiquor LLC. He called the business “a blessing” in a statement, touting its growth. “I am excited to renew this partnership with Bacardi,” he said.
According to Forbes, the musician-turned-entrepreneur has a net worth of $1.4 billion. With the $750 million in his account, his net worth is approaching $2 billion.
Jay-Z, born Shawn Carter in 1969, has established himself as one of the world’s top rappers, discovering musical brilliance. Although still engaged in music, he delved into entrepreneurship by launching a number of businesses and startup ventures.
According to the most recent asset appraisal, the rapper’s move into entrepreneurship paid off, as a series of deals saw his net worth climb by 40%. For example, he sold more than half of his share in Tidal, a video and audio streaming business run by Jack Dorsey, to Square, a digital payment company.
Square paid $297 million in cash and shares, while Tidal’s superstar shareholders, including Beyoncé, Madonna, and Rihanna, remained, making them the second-largest co-owners.
Previously, he sold half of his Champagne brand, Armand de Brignac, to Mot Hennessy, the luxury wines and spirits branch of LVMH. The acquisition was made possible through a collaboration with the rap legend based on an equal interest and a global distribution agreement.
According to Forbes, the two transactions increased Jay-worth Z’s from $1 billion to $1.4 billion. Meanwhile, according to Forbes, the wealthy rapper retains a 50% investment in Armand de Brignac, D’Usse cognac insurance firm Ethos, and salad chain Sweetgreen.
Jay-Z owns stakes in Uber, SpaceX, and now Square. He has stock in Oatly, an oatmilk company that is set to go public this year for a $10 billion valuation.