Earlier this month, rapper Soulja Boy announced that he had signed a $400 million deal with an unnamed company. After weeks of press speculation, it has now been revealed that the company in question is World Poker Fund Holdings. But, surprisingly enough given that we’re talking about a man who once lied about purchasing a $55 million jet, things are not quite what they seem.
According to Forbes, Soulja Boy will “mobilize his network” and join CelebrityWorld.com (a “celebrity-owned social gaming site” launched by WPFH that will soon be integrated into an in-flight gaming system) in order to promote the company. The gaming system will take advantage of a recent court decision that permits online gaming through a .gov portal, which, because countries cannot block government websites, makes in-flight gaming feasible for the first time.
The company itself values the system at $570 million, but according to CNN Money, World Poker Fund Holdings only has a market capitalization of around $52 million. Which poses the question: How can 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. Forbes reports that deal actually only includes both stock and revenue-sharing. CelebrityWorld.com spokesman Matthew Bird admitted,
“He really kind of jumped the gun. 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.”
It seems the company has promise, and Justin Bieber and Floyd Mayweather are also reportedly shareholders, but it remains to be seen whether Soulja Boy will ever get that $400 million.
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- Source: Forbes