Jay-Z and Bacardi have reached an agreement for their partnership.
As AfroTech previously reported, Jay-Z was said to be looking to sell his stake in D’Ussé.
According to Bloomberg Law, Jay-Z was looking for a buyout valued at $1.5 billion due to concerns that Empire Investments Inc., Bacardi’s subsidiary, was not adequately preparing for increasing consumer interest in the brand. Bacardi allegedly countered Jay-Z’s billion-dollar request with $500 million.
“According to docs, Jay’s company, SC Liquor, exercised its right to a buyout about a year ago. Under their agreement, Bacardi now has to ‘negotiate in good faith’ to come up with a fair price for Jay’s stake in D’Ussé,” TMZ reports.
After several months, the parties have found a resolution.
On Feb. 3, D’USSÉ Cognac announced that JAY-Z and Bacardi had renewed their partnership.
According to a press release, Bacardi has acquired a majority interest in the multi-billion-dollar brand, and the hip-hop billionaire will retain a significant ownership stake as part of the agreement.
Bloomberg Law reports Bacardi bought out most of Jay-Z’s 50 percent stake in D’Ussé. At the minimum, Bacardi has a 75.01 percent stake in the partnership.
The outlet also reports Jay-Z could have potentially walked away with an estimated $750 million.
“Growing D’USSÉ over the past decade from an idea to one of the fastest-selling spirits in history has been a blessing,” Jay-Z said in a statement, according to a press release. “The next phase of this journey will further cement D’USSÉ’s legacy as one of the world’s most respected brands. I am excited to renew this partnership with Bacardi.”
“We have deep respect for his creativity and business acumen and are proud of our accomplishments in establishing D’Usse as a leader in an exciting and competitive category,” Bacardi also shared in a statement to Bloomberg Law.
