Jay Z Sells Controlling Stake In D’USSÉ Cognac For $750 Million USD

UNITED STATES — After months of contentious arbitration and litigation in multiple courts, Jay Z‘s legal dispute with Bacardi has come to an end since the rapper turned music mogul and entrepreneur has sold his controlling stake of the D’USSÉ Cognac brand for $750 million USD.

According to Bloomberg, “Jay Z and a Bacardi Ltd. affiliate have resolved their dispute over their multibillion-dollar cognac joint venture, D’Usse“.

The settlement, announced in a press release Friday, calls for an affiliate of the liquor giant to buy out a majority of the rap star’s 50% stake in the cognac company, D’Usse LLC, leaving Bacardi owning at least 75.01% of the business.

The Brooklyn-native will retain “a significant ownership stake” through his company SCLiquor LLC, according to the press release. He called the venture “a blessing” in a statement, touting its growth. “I am excited to renew this partnership with Bacardi,” Jay Z said.

The deal’s other terms weren’t disclosed, but Jay Z has maintained throughout the public dispute that D’Usse is worth at least $3 billion, and court papers show Bacardi previously rejected his $1.5 billion bid for its 50% stake. The move indicated it agreed with Jay Z’s proposed valuation, he has claimed.

The press release refers to the cognac maker simply as a “multi-billion dollar brand.” But at a $3 billion valuation, the deal would be worth at least $750 million.

A spokesperson for Bacardi declined to comment on the deal’s details Friday but, in a statement to Bloomberg Law, called Jay Z “an invaluable partner.”

“We have deep respect for his creativity and business acumen and are proud of our accomplishments in establishing D’Usse as a leader in an exciting and competitive category,” the statement said.

Photos Credit: Roc Nation

Source: Bloomberg