The business world can be a funny place sometimes as entities that you wouldn’t think could be a match actually end up getting together. This month spawned the beginning of a very intriguing relationship as the hip-hop world moved into poker, and the artist in question is someone we haven’t heard from in a while.
Soulja Boy, also known as Soulja Boy Tell ‘Em, burst onto the music scene in 2007 as he released “Crank That (Soulja Boy)”, which – along with the dance – was one of the anthems of the year. While he’s had some additional hits since, he’s mostly become a background character in the hip-hop game, making his money through social media and various endorsements. That’s why it caught a lot of headlines when he personally announced that he was receiving $400 million as part of a poker deal.
At the beginning of May, Soulja Boy boasted about the fact that he cashed in on a massive $400 million deal with the World Poker Fund. Many were skeptical as Soulja Boy’s current star power doesn’t deserve such a payday, and at first glance the World Poker Fund couldn’t afford it. After all, the company lost $400,000 last year and is only valued at $52 million in total. What was even more bizarre was when the World Poker Fund released a statement on their own website to confirm the deal. Not only that, they heavily implied that Soulja Boy was in fact going to net $400 million.
On Tuesday, the doubters were proved right as it appears that Soulja Boy and company have over-exaggerated the deal. While it could be worth up to $400 million, the reality is that it’s only worth about $2.5 million. World Poker Fund is a publicly traded company and they’ll pay Soulja Boy in shares. Currently, those shares are trading at about $1.70 and Soulja Boy received 1.5 million shares. Those shares will cap out at a maximum of $400 million, but the shares are a long ways away from hitting that mark.
While Soulja Boy’s claim of $80 million per year for his five-year deal was a big stretch, what he will receive is about $2.5 million if the shares don’t decline. If you’re wondering what Soulja Boy’s end of the bargain is, he’s going to be using his social media channels to promote the World Poker Fund and hopefully help grow its business. It is similar to the 50 Cent/Vitamin Water deal in that 50 Cent received shares in return for his promotion of the product, which boosted its value and that is how he made his money.
Soulja Boy will have to do the same, although it’ll be tough because at his height, Soulja Boy was never as popular as 50 Cent. Soulja Boy also joins the likes of boxing great Floyd Mayweather, fellow hip-hop artist Tyga and even pop star Justin Bieber as shareholders in World Poker Fund Holdings.
The $400 million statement seems like it was made to create a buzz around World Poker Fund Holdings, and it might have worked as way more people know that brand name now.