Update 02/04/2023 11:30am:
Jay-Z previously was wrapped up in a dispute with Bacardi over their D’Usse partnership, with the disagreement reaching up to $2 billion. The artist was offered around $500 million to get full ownership of D’Usse, which was rejected. When Hov responded by asking for $1.5 billion, that was also rejected. When both parties couldn’t reach a conclusion, Jay-Z sued Bacardi for mishandling the D’Usse brand. Since then, an announcement was noting both parties have settled their legal issues.
It was noted that Bacardi bought out a good chunk of Jay-Z’s stake in the alcohol brand, helping them secure a majority interest of at least 75%, according to Bloomberg. However, as part of their deal, Jay-Z reportedly maintained a “significant ownership stake” in their agreement. Details on the amount paid out in the new deal for D’Usse and Jay-Z were limited, but it was suggested the deal was worth $750 million based on the company’s $3 billion valuation.
Via a press release, Jay-Z said, “Growing D’usse 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’usse’s legacy as one of the world’s most respected brands. I am excited to renew this partnership with Bacardi.”
Original 12/02/2022 12:07pm:
Recently it was revealed that Jay-Z’s dispute with Bacardi over his D’Usse partnership reached upwards of $2 billion. Now, more information surfaced about the mogul’s situation, noting he was rejected after offering Bacardi a hefty amount to buy full ownership of D’Usse.
Currently, Jay-Z is wrapped up in a legal situation with Bacardi after both sides previously offered legal valuations of D’Usse. Jay-Z and his legal team felt the brand was worth $2.5 billion, while Bacardi said they only thought it was worth $460 million.
New court documents claim Jay-Z tried to buy out Bacardi in December 2021 following the valuation, offering $1.5 billion. However, the offer was rejected. Because of this, the documents accused Bacardi of “unduly influencing a third party that was called to appraise the brand.”
Since then, Jay-Z and his legal team have requested that the court modify the result of the arbitration both sides went through to settle the sale. The next hearing on the matter was scheduled for December 1. Stay tuned for more updates.
Original 11/29/2022 11:56am:
Previously, Jay-Z launched a lawsuit against Bacardi, and now $2 billion may be up for dispute in the suit over Hov and Bacardi’s business relationship for D’Usse. An arbitrator in the case—Daniel Schimmel, allegedly cited the $2 billion as part of his work history on the website of his law firm.
Schimmel said, “Chair of an ICDR Tribunal with a seat in New York in an arbitration between members of a Delaware limited liability company. The amount in dispute exceeds US$2 billion.” Court documents acquired by Complex noted that Schimmel is one of the original arbitrators in Jay-Z’s 2018 lawsuit against Iconix Brand Group.
Since then, Jay-Z’s SC Liquor LLC was granted an emergency hearing against Bacardi’s subsidiary Empire Investments Inc. The hearing is supposed to happen at the beginning of December. In the suit filed against Bacardi by SC Liquor LLC, Hov’s company claims Empire “artificially held D’Usse back from achieving its full potential.” Stay tuned for more updates.
Original 10/21/2022 3:36am:
According to TMZ, the partnership between Jay-Z and the popular cognac brand D'Ussé is looking like it's coming to an end over Hov's dispute with D'Ussé's parent company, Bacardi.
Jay is now selling his stake in the brand and demands Bacardi engage the buyout process "in good faith." As TMZ reports, "Jay's company, SC Liquor, exercised its right to a buyout about a year ago. Under their agreement, Bacardi now has to "negotiate in good faith" to come up with a fair price for Jay's stake in D'Ussé."
Court documents suggest both sides aren't close in terms of valuation. Although the numbers have been redacted from the court docs, it is reported that the value Jay's side sees in this isn't being similarly reflected from his counterparts at Bacardi.