03/23: Report: Diddy Entitled to Lump Sum if Diageo Sells Ciroc
If Ciroc parent company Diageo decided to sell the vodka line, Diddy would stand to receive a lump sum, the amount of which would grow based on the overall value of the brand. This was revealed in a
report by Forbes writer Zack O'Malley Greenburg.
Back when the
deal was announced, it was said that it meant a 50/50 profit share between Diddy and Ciroc, which would max out at $100 million. Because of this, Greenburg's assertion was challenged in the comments on the story, but
he defended the report.
That's true - it's not a straight equity deal, which is why it's not in the [company filing]," he said. "However, in my reporting I discovered that Diddy is entitled to a lump sum payout in the event of a sale, and this escalates along with the brand’s value. I doubt Diageo will sell, but if they do, he’s entitled to a nine-figure payday."
Greenburg suggests that Diddy's interest in Ciroc will lead to him becoming hip-hop's first billionaire.
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