Soulja Boy’s Latest Endorsement Deal Isn’t Really Worth $400 Million
Soulja Boy might be known for a lot of things but the business savvy rapper is always hitting the ‘Superman’ to bank. The ‘Crank Dat’ MC recently revealed that he just inked a mysterious multi-million dollar deal…
But not so fast!!! Forbes now reports that the World Poker Fund Holdings deal isn’t really worth $400 million:
So how is a company that is worth just north of $50 million going to pay out $400 million to their celebrity endorser? The answer is, they’re not. The deal, according to Bird, includes both stock and revenue-sharing.
“He really kind of jumped the gun” by using the $400 million figure, Bird says. “The deal is capped at $400 million, and it’s based on a forward-thinking valuation of the company. He’s young, he’s 25 years old. He got really excited, and he tweeted something he probably shouldn’t have tweeted. He was getting a lot of pressure from within the entertainment community, so he wanted to put a statement out. Obviously, the company’s market cap is at $51.8 million. There’s no way they could cut a $400 million deal. Endorsement deals are calculated on a lot of different factors. This is not a fully cash transaction.”
Bird claims that another “mega-celebrity” will hop on board with WPFH and CelebrityWorld.com in a few days. And, in fact, it has been reported that Justin Bieber and Floyd Mayweather are both shareholders in the company.
Looks like the stacks aren’t really on deck after all, huh??