Jay-Z Resolves $2 Billion Dispute w/ Bacardi Over D’Usse
Jay-Z and Bacardi have finally reached a settlement.
According to reports, after months of going back and forth in court, hip-hop vet Jay-Z and a Bacardi Ltd. affiliate resolved their dispute over their multi-billion dollar cognac joint venture, D’Usse. The settlement was announced in a press release shared on Friday (Feb. 3), revealing an associate of Bacardi will purchase a majority of Jay-Z’s 50% stake in D’Usse LLC, leaving the liquor giant to own at least 75% of the company.
Jay-Z, born Shawn Carter, will retain “a significant ownership stake” through his business SCLiquor LLC. In a statement, he noted the venture is “a blessing,” while also pointing out its growth. The 53-year-old said:
“I am excited to renew this partnership with Bacardi.”
The other terms of the deal weren’t publicized but the Grammy-Award winner maintained that D’Usse is worth up to three billion dollars and court documents prove Bacardi previously rejected his $1.5 billion bid for its 50% stake. In addition, the press release addressed the cognac founder as a “multi-billion dollar brand.” At a $3 billion valuation, the deal would be worth at least $750 million. In a statement, a spokesperson for Bacardi called the record producer “an invaluable partner.” The statement said:
“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.”
As previously reported, the Brooklyn native tried to opt out of his D’Usse partnership and faced legal troubles in doing so. The rapper wanted to sell his share of the cognac brand but alleged Bacardi was trying to lowball him on his total compensation. As a rebuttal, the major spirits company slammed Hov for allegedly not following through with his end of the deal. Bacardi’s subsidiary, Empire Investments, responded to his lawsuit, claiming that both parties actually had a “handshake deal” last December in which Empire Investments agreed to purchase Jay-Z’s 50 percent stake in D’Usse.
What are your thoughts on Jay-Z and Bacardi finally reaching a settlement based on their business disagreement?