Jay has recently reached a deal with luxury conglomerate … Armand de Brignac, which Forbes estimated was … For a celebrity, this latter approach might represent the better path to a major payday, as the latest deal by French luxury giant LVMH demonstrates. To contact the author of this story:Alex Webb at awebb25@bloomberg.net, To contact the editor responsible for this story:Nicole Torres at ntorres51@bloomberg.net. Jay-Z, who Forbes named hip-hop's first billionaire in 2019, made his fortune mostly through business deals. Sometimes it’s more lucrative to keep your name off the bottle. A Bloomberg Opinion editor found that out the hard way. As good as even the most effective shots are, they can’t promise total immunity. So he buys the company," proclaimed CNN. What Happened: Armand is owned by rapper and mogul Shawn "Jay-Z" Carter. Here are the precise details of how much Izzo made. After lockdowns ease, pushing the champagne, which is also known as Ace of Spades, through Moet Hennessy’s existing sales channels could make the company worth considerably more. Both the Casamigos and Aviation deals have earn-out agreements, meaning the full sum will only be paid to the sellers if the brands meet certain goals over the course of a decade. The details have not been made public, but Jay-Z previously said he was ‘proud’ to welcome Moët Hennessy on board. For a celebrity, this latter approach might represent the better path to a major payday, as the latest deal by French luxury giant LVMH demonstrates. Central banks will hold the power as interoperability between national tokens — and private ones — takes priority. Last month, the rapper made a deal with Moët Hennessy, the wine and spirits division of luxury goods giant LVMH, with the company buying a 50% stake. They benefit from the star’s cachet and social media reach, but the company and the personality are not synonymous. Adidas AG, which makes Kanye’s Yeezys, trod a tricky path in 2018 when the rapper described slavery as “a choice” made by African Americans. Privacy concerns and technological innovation are changing how users are tracked online, but targeted ads aren’t going anywhere. In other words, the arm’s length approach to branding seems to work well for selling the business for a hefty fee. Have a confidential tip for our reporters? "Jay Z likes $300 champagne. Jay-Z and luxury goods giant LVMH have a reason to break out the bubbly. Schaus said Jay-Z’s involvement had helped broaden the appeal of champagne. The deal is aimed at growing Armand de Brignac through LVMH's global distribution networks and using its vast resources. Metro.co.uk has contacted reps for Jay-Z for comment. But the deal still provides the opportunity for Jay-Z to cash out for a lot more money in a few years’ time. Convinced the partnership will boost the ‘commercial power’ of his own champagne label, produced in France, the 51-year-old said in a statement: ‘I’m proud to welcome the Arnault family into ours through this partnership that began with Alexandre Arnault and continued with his father Bernard Arnault and Philippe Schaus, at my home in Los Angeles. It turns out Jay-Z’s luxury champagne brand is worth more than “half a B.” The partnership announced on Monday between Jay-Z and the wine and spirits … Photographer: Erik Voake/Getty Images North America. Terms of the deal… According to Forbes, the deal valued the brand, Armand de Brignac [Ace of Spades], at about $630 million, with it landing him a cash payment of about $300 million (£214 million). From tennis players Rene Lacoste and Fred Perry’s eponymous sportswear labels in the 1920s and 1930s, to boxer George Foreman’s Lean Mean Fat-Reducing Grilling Machine and the late actor Paul Newman’s namesake food company, superstars have long plastered their name onto products in which they have a financial interest. Tina shared the letter to … The transaction amount wasn’t revealed, but The New York Times suggested, slightly tongue-in-cheek, that the brand might be worth $250 million based on a Jay-Z lyric indicating as much in 2018. The 4:44 emcee said the deal would take his champagne to “the next level of taste and distribution.” JAY-Z donates “What It Feels Like” proceeds to Nipsey Hussle estate and the Hampton House Knowles-Lawson concluded her open letter by commending the Brooklyn native for continuing to push the culture forward. Jay-Z and renowned luxury group LVHM are entering a new era together. Moet Hennessy is acquiring a 50% stake in rapper and entrepreneur Jay-Z’s Champagne brand in an effort to up its cool factor and expand distribution. Then there’s a second basket of brands that are also promoted, often founded and at least partly owned by celebs, but that have an independent identity: George Clooney’s Casamigos tequila, Ryan Reynolds’s Aviation American Gin and Jessica Alba’s the Honest Co., a maker of baby and beauty products. Although Champagne as a business suffered during the pandemic, Jay-Z said the market has recovered from its initial sharp drop-off in revenue and shipments in 2020, and has settled at a deficit of 20%. The announcement comes less than two weeks after Jay-Z announced that he would sell 50 percent of his champagne ... and most will be sold to Square as part of the deal. What Happened? The rapper and entrepreneur announced on Monday that he had sold 50 percent ownership of the Armand de Brignac champagne … Some are intimately associated with the star: Lifestyle website Goop reflects the actress and founder Gwyneth Paltrow’s initials, cosmetics label Fenty is the singer Rihanna’s surname and Yeezy sneakers are a complicated play on rapper Kanye West’s first name. Its Moet Hennessy unit bought a 50% stake in Armand de Brignac, the champagne maker that rapper Jay-Z has owned since 2014, for an undisclosed sum. The Future of Money Is Digital, But Is It Bitcoin. The rapper is just one of the many celebrities who have launched their own alcohol brands since finding fame. LVMH Moët Hennessy will take over the global distribution of Jay-Z’s brand that doesn’t exactly come cheap, with bottles of champagne boasting a price tag of between $350 and $65,000 (around £250 and £46k). I Got Vaccinated, Then I Got Covid. The terms of the deal … Both businessmen hope the “superluxury” sector may be first to recover, said Schaus. Jay-Z has sold off a 50 percent stake in his Armand de Brignac champagne brand, reports CNN. “They have disrupted the category and opened it up to a new market,” he added. The owners of Dom Pérignon and Moët & Chandon will take over the global distribution for the eye-catching champagne, known for its metallic bottles that cost hundreds of dollars each. That keeps the stars invested, but it also means that if Clooney or Reynolds suffer a reputational setback for any reason, then Diageo has some protection — the brands are not directly associated with the actors, and if sales suffer, then the earn-out fees are reduced. The Twilight of Hong Kong’s Independent Judiciary, Yes, You Can Catch Covid After Vaccination. JAY-Z Made $315+ Million In Recent Deal. The deal arose from discussions started between Jay-Z and Alexandre Arnault, the 28-year-old son of French billionaire Bernard Arnault, LVMH's chief executive and controlling shareholder. Its Moet Hennessy unit bought a 50% stake in Armand de Brignac, the champagne maker that rapper Jay-Z … According to Forbes, the recent acquisition of Jay-Z’s Armand de Brignac champagne brand by LVMH is said to have been worth a reported $630 million.. Ryan Reynolds has his own gin line, Brad Pitt has his own wine and more recently, Kendall Jenner dropped her very own tequila. Jay-Z's Tidal being bought by Jack Dorsey for $297million, Moët Hennessy buys 50% stake in Jay-Z's fancy champagne, Jay-Z, Kate Bush and Tina Turner among 2021 nominees for Rock & Roll Hall of Fame. LVMH’s Moet Hennessy has bought a 50% stake in Armand de Brignac, a Champagne producer owned by rapper Jay-Z, another sign of a close relationship between the … Jay-Z, the mastermind of the rap game, has just acquired lots of money by engaging in a lucrative corporate deal. But today, keeping your moniker off the label appears more lucrative. Before it's here, it's on the Bloomberg Terminal. The champagne brand, which sells its gold bottles for $300 apiece, has appeared in JAY-Z’s music videos including 2006’s “Show Me What You Got” and 2007’s “Roc Boys (And the Winner Is).” LVMH, which owns Dom Pérignon and Moët & Chandon, has taken a 50% stake in Jay-Z's Champagne brand Armand de Brignac, also known as "Ace of Spades." Jay-Z is expanding his empire. Dr. Dre has saluted JAY-Z’s major champagne deal.On Monday (Feb. 22), it was announced that Hov sold half of his Armand de Brignac champagne brand to LVMH’s wine and spirits division, Moët Hennessy. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Jay-Z has reportedly sold half of his stake in his champagne brand Armand de Brignac. Google Puts Lid on Cookie Jar and Ends an Internet Era. He previously covered Apple and other technology companies for Bloomberg News in San Francisco. ‘We are confident that the sheer power of the Moët Hennessy global distribution framework, its unparalleled portfolio strength and its long-established track record of excellence in developing luxury brands will give Armand de Brignac the commercial power it needs to grow and flourish even further.’. ‘It is a partnership that has felt familiar the entire time. MORE : Jay-Z ‘proud’ to welcome Moët Hennessy on board as company buys 50% stake in his fancy champagne, MORE : Jay-Z, Kate Bush and Tina Turner among 2021 nominees for Rock & Roll Hall of Fame, Meghan Markle’s Suits co-star Patrick J Adams hits out at ‘obscene’ Royal Family in scathing takedown: ‘My friend is way out of your league’, Harry Styles’ lover in romantic drama My Policeman to be played by David Dawson, Susan Boyle gets coronavirus vaccine as she sees ‘light at the end of the tunnel’, Inside Meghan Markle and her former Suits co-star Patrick J Adams’ friendship as he defends her, Emma Willis wants kids to ‘explore’ as she refuses to stop son expressing himself after smashing gender stereotypes with pink crop top, Jay-Z ‘proud’ to welcome Moët Hennessy on board as company buys 50% stake in his fancy champagne. March 4, 2021 | AtoZ Markets – French conglomerate LVMH has acquired a 50% stake in rapper Jay-Z’s champagne brand Armand de Brignac, also known as ‘Ace of Spades’. DEAL: Moët Hennessy announces partnership with Jay-Z, acquires 50% stake in his Champagne brand Louis Vuitton Moët Hennessy (LVMH) signs partnership agreement with Jay-Z’s Champagne brand, Armand de Brignac. Its Moet Hennessy unit bought a 50% stake in Armand de Brignac, the champagne maker that rapper Jay-Z has owned since 2014, for an undisclosed sum. "Jay Z buys Armand de Brignac champagne brand," blared the BBC. Jay-Z seems to have struck gold with his recent deal on his champagne Armand de Brignac, with it being valued at $630 million (£451 million). LVMH might then consider buying Jay-Z’s remaining 50% interest at that more generous valuation. LVMH’s Armand de Brignac investment is likely to have a similar deal structure to Diageo’s in practice if not in appearance. If you’ve got a celebrity story, video or pictures get in touch with the Metro.co.uk entertainment team by emailing us celebtips@metro.co.uk, calling 020 3615 2145 or by visiting our Submit Stuff page – we’d love to hear from you. Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. Jay-Z seems to have struck gold with his recent deal on his champagne Armand de Brignac, with it being valued at $630 million (£451 million). They all cashed in on their name recognition. The investment follows Diageo Plc’s $1 billion deal for Clooney’s Casamigos in 2017 and $610 million acquisition of Reynolds’s Aviation American Gin just last year. That protection is harder to come by when celebs are the face and name of the product. It's among the youngest champagne brands and best known for its … After all, if the company is not inextricably tied to a celebrity’s cachet, it’s easier for an acquirer to turn it into a standalone operation. According to the New York Times, Jay-Z and the company that owns Dom Pérignon and Moët & Chandon, LVMH, are joining forces. The deal represents the ultimate seal of approval from a traditionally conservative and insular milieu, where Shawn “Jay-Z” Carter made waves … Forbes has reported that the brand was valued at more than $600 million, with more than half of that going to Hov himself. Chief Executive Officer Kasper Rorsted weathered the storm by distancing the company from the comments, while sticking with the brand. Problem is, this piece of 'news' isn't actually new. Celebrity brands are not a new phenomenon. Beyonce’s mother Tina Knowles-Lawson has praised her son-in-law Jay-Z, calling the rapper a “true man” in a gushing open letter. … The investment follows Diageo Plc’s $1 billion deal for Clooney’s Casamigos in 2017 and $610 million acquisition of Reynolds’s Aviation American Gin just last year. LVMH and JAY-Z's Armand de Brignac Deal Valued at Over $600 Million USD: Giving Hov at least $315 million USD in cash payment. But Don’t Panic, We're Going to Need a Bigger Boat for SPAC Mania, Covid-Decimated Jobs Rebound Faster Than Expected. Mobile payments company Square announced Thursday that it has finalized a deal to purchase a majority stake of Tidal, the music streaming service run by billionaire rapper Shawn “Jay-Z” … Its Moet Hennessy unit bought a 50% stake in Armand de Brignac, the champagne maker that rapper Jay-Z has owned since 2014, for an undisclosed sum. There are two categories of celebrity brands. The LVMH deal probably values it at significantly less than that, given that a sizable chunk of the brand’s sales come from high-end nightclubs, most of which have been closed due to the Covid-19 pandemic. On Monday, Shawn "Jay-Z" Carter sold a 50% stake in his Armand de Brignac champagne brand to luxury goods conglomerate LVMH for an undisclosed …