Friday, December 31, 2010

50 Cent's Half-Billion $

Washington Post's Dan Charnas gets into the myth of 50 Cent's Vitaminwater investment/partnership that was originally believed to have earned the rapper $400-500 million. Charnas concedes at the end of the article that it was more like $60-100 million, but still makes for a good story.

"It may well have been the biggest deal in hip-hop history, propelling 50 Cent's personal net worth toward a half-billion dollars."

"50 Cent would take a stake in the privately owned company, one that would graduate over time and escalate if the company hit certain numbers. The two entities - 50 Cent on one hand and Glaceau on the other - signed an agreement of mutual confidentiality. Still, word got around that Lighty had negotiated something close to, but not more than, 10 percent of the value of the company."

"In May 2007, the Coca-Cola Company purchased Glaceau for $4.1 billion."


"During these discussions, Lighty and 50 deliberated the attributes of their new product. Oza presented the pair with several flavor options for Formula 50. For Chris Lighty, the choice was simple. Despite the high-minded science of Glaceau, their product was basically a smarter, more upscale, more aspirational version of the ultimate ghetto beverage on which Lighty and 50 had grown up: the "quarter-waters" sold in every bodega, deli and convenience store from Queens to Compton.

The quarter-waters (so named because they once cost 25 cents) were just like the Kool-Aid everybody drank at home. But nobody drank wild flavors like strawberry and kiwi in the 'hood. They drank grape. Formula 50 had to be grape."

No comments: