In 2012, Jay-Z introduced a cognac brand called “D’Ussé” which was a partnership with liquor behemoth Bacardi. For the next ten years, it was a great and profitable partnership. Jay-Z handled marketing. On the other hand, Bacardi handled distribution and production.
Since this was Jay-Z, it was not a lopsided partnership with the large liquor conglomerate owning 95% and the celebrity doing all the work for a sliver. It was a 50/50 joint venture.
Sadly, that decade of prosperity ended in late 2022 with a series of lawsuits. These lawsuits focused on the general valuation of D’Ussé. Bacardi wanted to acquire the controlling stake in D’Ussé, and Jay was fully open to that concept. However, they were far apart on the amount the brand was worth.
Based on court filings that were made public in January 2023, at some point in the past year, Jay-Z offered to sell his 50% stake to Bacardi at a $3 billion valuation. In that context, he was offering to accept $1.5 billion.
Bacardi rejected the valuation alleging that it had a handshake deal with the rapper from December 2021 where he agreed on a deal at half the valuation. AKA, a total valuation of $1.5 billion. Bacardi alleged that Jay-Z arbitrarily doubled the price.
In the lawsuit, Jay-Z accused Bacardi of purposely mismanaging D’Ussé to push the brand’s value down. But, everything came to a happy conclusion on February 10.
A Deal Was Reached
After Several months of back-and-forth bitter legal fights, Bloomberg Law revealed that Jay-Z and Bacardi had squashed their beef.
Based on the reported terms of the agreement, Bacardi purchased 25.1% of Jay-Z’s 50% stake, leaving him with 24.9% and them with 75.1%. The acquisition price valuation used in the transaction was $3 billion – the amount Jay-Z demanded after originally agreeing to half that much in December 2021. It seems Jay got his way.
Assuming that the celebrity sold 25% of his stake at a $3 billion valuation, it means he earned a cash windfall of…
After taxes, it will add nearly $300 million to Jay-Z’s previous $1.3 billion net worth. His net worth is now around $1.6 billion. However, that is not the whole picture.
At a $3 billion valuation, Jay’s remaining 24.9% stake is worth…
Even for anyone conservative, Jay’s current net worth is at least $2 billion. That is enough to earn him the coveted “multi” billionaire status.