Jay-Z and Bacardi have struck a multibillion-dollar deal as part of a settlement to end the rapper’s lawsuit against the spirits company over his stake in the D’USSÉ premium cognac.
News of the settlement came on Friday Jay-Z, whose real name is Shawn Carter, and Bacardi struck a new long-term agreement surrounding the D’USSÉ premium cognac brand following the rapper’s lawsuit.
The rapper’s lawsuit against Bacardi stemmed from a potential business transaction between the two parties, who are both 50/50 owners of the D’USSÉ brand. Jay-Z took the company to court to demand Bacardi release information about the “location of all warehouses storing D’USSÉ barrels, bottles and accessories” so his company, SC Liquor Company, can get a proper valuation of what his 50% share is worth.
The rapper’s attorneys have alleged that his stake is around $2 billion, but they accused Bacardi of maliciously mismanaging the brand to force the rapper to sell his share way below its actual value.
Things threatened to get nasty between the two partners, but according to Complex, the parties came to an amicable settlement on Friday, with Jay-Z releasing a statement on the new deal struck.
“Growing D’USSÉ over the past decade from an idea to one of the fastest-selling spirits in history has been a blessing,” the statement from Jay-Z read. “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.”
The details of the new agreement have not been shared, but it appears that Bacardi has agreed to Jay-Z’s price, with reports that the new deal will see Bacardi acquiring a majority interest in the multibillion-dollar brand while Jay will have a “significant ownership stake.”
It’s likely the rapper sold at least 26% of his shares. The deal was facilitated by Jay-Z’s financial advisor, Evercore.