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Doberman23 Veteran Poster Username: Doberman23
Post Number: 854 Registered: 01-2006
Rating: N/A Votes: 0 (Vote!) | Posted on Tuesday, March 06, 2007 - 05:47 pm: |
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"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. |
Cynique "Cyniquian" Level Poster Username: Cynique
Post Number: 7648 Registered: 01-2004
Rating: N/A Votes: 0 (Vote!) | Posted on Tuesday, March 06, 2007 - 06:02 pm: |
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Looks like Jay-Z hit the lottery, huh, Dobes? Mo money Mo money Mo money. |
Yukio Veteran Poster Username: Yukio
Post Number: 1966 Registered: 01-2004
Rating: N/A Votes: 0 (Vote!) | Posted on Tuesday, March 06, 2007 - 09:44 pm: |
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and some fool said J was dead... |
Doberman23 Veteran Poster Username: Doberman23
Post Number: 857 Registered: 01-2006
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 04:58 am: |
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cynique no one won, guess we'll try again friday 370 million now... lol... that would instantly turn someone into a snob. |
Abm "Cyniquian" Level Poster Username: Abm
Post Number: 8652 Registered: 04-2004
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 06:54 am: |
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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. |
Yvettep Veteran Poster Username: Yvettep
Post Number: 1720 Registered: 01-2005
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 11:50 am: |
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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. |
Abm "Cyniquian" Level Poster Username: Abm
Post Number: 8663 Registered: 04-2004
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 12:30 pm: |
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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. |
Yvettep Veteran Poster Username: Yvettep
Post Number: 1721 Registered: 01-2005
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 12:41 pm: |
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Gotcha. Anyway: I wish I had something worth 204 mil cash to sell LOL! |
Abm "Cyniquian" Level Poster Username: Abm
Post Number: 8664 Registered: 04-2004
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 01:02 pm: |
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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!!! |
Mzuri "Cyniquian" Level Poster Username: Mzuri
Post Number: 3814 Registered: 01-2006
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 01:13 pm: |
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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 $204M ain't nothin to sneeze at - that's for sure. I think that Jay-Z is a wonderful example of how to successfully diversify and parlay one's resources. This is great.
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Cynique "Cyniquian" Level Poster Username: Cynique
Post Number: 7662 Registered: 01-2004
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 02:09 pm: |
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I swear, every time I look at a picture of Jay-Z, he look$ better and better. There's just $omething about him that I've grown to like... |
Yvettep Veteran Poster Username: Yvettep
Post Number: 1723 Registered: 01-2005
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 02:22 pm: |
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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! |
Mzuri "Cyniquian" Level Poster Username: Mzuri
Post Number: 3817 Registered: 01-2006
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 02:27 pm: |
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Yum. ChapStick. |
Cynique "Cyniquian" Level Poster Username: Cynique
Post Number: 7666 Registered: 01-2004
Rating: N/A Votes: 0 (Vote!) | Posted on Wednesday, March 07, 2007 - 03:52 pm: |
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Wonder if they'll approach ol liver-lips Lauren Hill to be a female endorser... couldn't resist. |