After engaging in a disagreement over the amount of a valuation of the D’Usse brand, it’s no longer a Hard Knock Life between Bacardi and hip-hop billionaire, Jay-Z.
The two parties announced in a recent press release that both sides have reached a long-term agreement to continue doing business together in the production of the popular cognac, D’Usse. In doing so, instead of purchasing the 50% stake Shawn “Jay-Z” Carter owns, Bacardi has acquired a majority interest in D’Usse.
In a written statement, the entrepreneur said, “Growing D’USSÉ over the past decade from an idea to one of the fastest-selling spirits in history has been a blessing. 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.”
Bacardi and Jay-Z have been in business for over 10 years after launching D’Usse in 2012. The success of the partnership has garnered the cognac brand a Double Gold at the 2021 San Francisco World Spirits Competition and Double Gold at the 2022 Proof Awards.
Back in October, TMZ Hip Hop reported that Jay-Z’s liquor company, SC Liquor, filed a lawsuit against Bacardi, looking to obtain information on how much money the cognac line had been making. Jay-Z and his company wanted access to the financial records. The lawsuit stated that SC Liquor needs to “monitor the conduct of [Bacardi’s] business to protect SC’s rights as” a partner in the company.
In response to the paperwork filed, Bacardi’s subsidiary, Empire Investments, wrote that Jay-Z and the company had a “handshake deal” in December of 2021, where they agreed to buy the wealthy rapper’s 50 percent stake in the cognac brand. The company claimed that Jay-Z “abruptly reneged on its agreement and doubled its demanded valuation.” No amounts were revealed.
According to a report by Complex, through court documents viewed, the valuation of the company was given as $3 billion. Previously, Bacardi was offered $1.5 billion from Jay-Z to purchase a stake in D’Usse with an estimated valuation of $2.5 billion which Bacardi turned down. They insisted the amount of the valuation was lower.