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Jay-Z, Bacardi reach settlement in billion-dollar dispute

Jay-Z

African-American businessman and rapper Shawn “Jay-Z” Carter and Bacardi Ltd. have come to an agreement regarding their multibillion-dollar joint venture, D’Usse.

D’Usse, a premium cognac brand, was created by Sovereign Brands with the help of the senior-most cellar master, Michel Casavecchia.

In line with the terms of the latest arrangement, Bacardi has agreed to buy out the majority of Jay-Z’s 50-percent stake in D’Usse, leaving Bacardi with at least 75.01-percent ownership of the business. Upon the completion of the transaction, Jay-Z will still maintain a “significant ownership stake” through his company, SCLiquor LLC.

Although the details of the deal have not been made public, Jay-Z has estimated the value of D’Usse at $3 billion, while SCLiquor believes it is worth up to $5 billion.

Bacardi has declined to comment on the specifics of the deal.

The recent settlement was a response to Jay-Z’s demand for a buyout due to concerns that Bacardi subsidiary Empire Investments Inc. was mismanaging D’Usse and failing to prepare for a rise in consumer demand.

Jay-Z’s net worth has been steadily increasing, reaching $1.3 billion. He made $297 million in 2021 from the sale of a controlling stake in Tidal, his high-fidelity music streaming network, to Jack Dorsey’s Square.

In addition to his equity positions in Square and his involvement in Marcy Venture Partners, Jay-Z is also collaborating with Dorsey on “The Bitcoin Academy,” a program aimed at educating people about the democratization of knowledge and power.

Nearly two weeks ago, Grammy Award-winning comedian Dave Chappelle disclosed that Jay-Z, the legendary rapper who holds the title of hip-hop’s first billionaire with a staggering net worth of $1.3 billion, has made strategic investments in real estate properties in Ghana.

This move showcases Jay-Z’s entrepreneurial spirit and his desire to diversify his investment portfolio by exploring new markets, such as Ghana.

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