JAY-Z looks like he really made out on this deal. Rocawear, the hiphop clothing company that was Co-Founded by rap artist Jay-Z, has went through a little merger. Its kind of confusing but let me try to explain it.
Iconix brand group has bought the Rocawear brand for $204 million dollars. Now its just the Rocawear brand, meaning that Iconix has the ownership of the Rocawear name and can use it how they see fit, and anyone else that uses it has to get permission and pay royalties (or be hired to make the clothing).
As far as the company, Jay-Z is still pretty much in charge. He is still going to pretty much run the company like he has been doing, overseeing development, marketing and licensing. The kicker is… another $35 million in stock will be paid by Iconix to Jay-z (and partners) if Rocawear meet certain targets in a 5 year period. What the targets are, I don’t know, but it seems like Jay-Z (Chris Carter) has just made a bunch of money while still being able to run the company. Iconix projects the first twelve months of ownership will earn them $43 million in royalties.
Interested in checking out Rocawear clothing? click here