After engaging in a disagreement over the valuation amount 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 had reached a long-term agreement to continue doing business together in producing the popular cognac, D’Usse. 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 partnership’s success has garnered the cognac brand a Double Gold at the 2021 San Francisco World Spirits Competition and Double Gold at the 2022 Proof Awards.
In October, TMZ Hip Hop reported that Jay-Z’s liquor company, SC Liquor, filed a lawsuit against Bacardi, seeking 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 filed paperwork, 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% 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 viewed court documents, the company’s valuation was given as $3 billion. Previously, Jay-Z offered $1.5 billion to Bacardi 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.