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AALBC.com's Thumper's Corner Discussion Board » Culture, Race & Economy - Archive 2007 » Jay-z sells rocawear « Previous Next »

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Doberman23
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Post Number: 854
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Posted on Tuesday, March 06, 2007 - 05:47 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

"I'm a Business, Man": Jay-Z Sells Rocawear for $204 Mil in Cash
By: Julianne Shepherd
POSTED: 11:20 EST, March 6, 2007

Jay stays chief creative officer; company expects to earn about $43 mil in royalties its first year

In the latest installment of Jay-Z the Cakemaker, your man Shawn Carter has sold his popular urban apparel line, Rocawear, for $204 million in cash money. The purchasing company, Iconix, also manufactures Candie's and Joe Boxer and bought Rocawear to diversify their stock portfolio. In the deal, Carter will remain Rocawear's chief creative officer, retaining his stake in the company and heading up all product development, marketing and licensing. Further, Iconix and Carter will establish a new brand management and licensing company to identify brands to be acquired or developed. Their first brand is a luxury line, the Shawn Carter Collection, out next year.

The purchase also includes payments of an additional $35 million in Iconix stock if the brand surpasses performance threshholds over the next three to five years. Iconix's last purchase was Danskin, Inc., the people who make tights and leotards.
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Cynique
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Username: Cynique

Post Number: 7648
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Posted on Tuesday, March 06, 2007 - 06:02 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

Looks like Jay-Z hit the lottery, huh, Dobes? Mo money Mo money Mo money.
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Yukio
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Post Number: 1966
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Posted on Tuesday, March 06, 2007 - 09:44 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

and some fool said J was dead...
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Doberman23
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Post Number: 857
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Posted on Wednesday, March 07, 2007 - 04:58 am:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

cynique no one won, guess we'll try again friday 370 million now... lol... that would instantly turn someone into a snob.
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Abm
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Username: Abm

Post Number: 8652
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Posted on Wednesday, March 07, 2007 - 06:54 am:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

That's a LOT of dough the Jiggaman done scored there. Though it seems to me if Iconix's interests in Rocowears yields more than a FIFTH ($43M/$204M) of what they paid for Rocawear in their first year of ownership, it sounds like Jay Z might have been UNDERPAID.
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Yvettep
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Post Number: 1720
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Posted on Wednesday, March 07, 2007 - 11:50 am:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

ABM, not necessarily. I mean, that's what this kind of business is all about, right? Taking risks, trying to time things just so, hedging your bets, making deals that benefit you but not at the expense of not benefiting the other guy (otherwise the deal will fall through)...

And he will continue to reap financial benefits from the new entity in his new capacity--without the same financial risk or (likely) time investment.

I dunno much about business. (You're the math wiz and Mzuri's the entrepreneur here!) But sounds to me like he did OK.
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Abm
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Post Number: 8663
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Posted on Wednesday, March 07, 2007 - 12:30 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

Yvettep,

Usually, when you sell a business, you try to score at least somewhere in the range of 10 - 20X's the business' annual earnings (commonly called Price-Earnings ratio). Though, since I don't know how well Rocawear has done over the last 5 - 10 years, perhaps Jigga did make out on the sale.

And, yes, Jigga may greatly benefit from the expected appreciation of Iconix's stock.


As a point of comparison: BET's annual earnings were $200M when Bob Johnson sold BET to Viacom for $3B yielding a Price-Earnings ratio = 15. 'Course, things like the nature of the industry, age of business, competition, are important factor to consider.
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Yvettep
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Post Number: 1721
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Posted on Wednesday, March 07, 2007 - 12:41 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

Gotcha. Anyway: I wish I had something worth 204 mil cash to sell LOL!
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Abm
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Post Number: 8664
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Posted on Wednesday, March 07, 2007 - 01:02 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

Yvettep: "...I wish I had something worth 204 mil cash to sell"


There's a very VERY NAUGHTY joke here. But I'd best leave that be.

Hahahahahaha!!!
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Mzuri
"Cyniquian" Level Poster
Username: Mzuri

Post Number: 3814
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Posted on Wednesday, March 07, 2007 - 01:13 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)


Y - One of my favorite songs of all time is Bobby Bland's - You'd Be A Millionaire

I don't know much about the sale of an apparel line, but $204M ain't nothin to sneeze at - that's for sure.

I think that Jay-Z is a wonderful example of how to successfully diversify and parlay one's resources. This is great.


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Cynique
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Post Number: 7662
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Posted on Wednesday, March 07, 2007 - 02:09 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

I swear, every time I look at a picture of Jay-Z, he look$ better and better. There's just $omething about him that I've grown to like...
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Yvettep
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Post Number: 1723
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Posted on Wednesday, March 07, 2007 - 02:22 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

LOL @ Cynique. And speaking of enterprising hip-hop artists, lookit what LL is set to endorse: http://www.allhiphop.com/hiphopnews/?ID=6772

I can't wait for those television ads!
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Mzuri
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Username: Mzuri

Post Number: 3817
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Posted on Wednesday, March 07, 2007 - 02:27 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)


Yum. ChapStick.
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Cynique
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Username: Cynique

Post Number: 7666
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Posted on Wednesday, March 07, 2007 - 03:52 pm:   Delete Post View Post/Check IP Print Post    Ban Poster IP (Moderator/Admin only)

Wonder if they'll approach ol liver-lips Lauren Hill to be a female endorser... couldn't resist.

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