Drake Just Gave Up Control Of OVO, But There May Be A Bigger Play

We are gonna break some of these rumors up. First: the facts.

Drake just surrendered majority ownership of OVO’s intellectual property, and the $164 million deal raises a much more interesting question than whether Champagne Papi just got another enormous bag. Who really controls the owl now?

Authentic Brands Group acquired 51 percent of October’s Very Own intellectual property, while Drake retains a substantial 44 percent stake. Vince Holding Corp. owns the remaining 5 percent and separately acquired OVO’s operating business, including retail, ecommerce, wholesale, merchandising and product development. Hmmmmm…

Now, before everybody starts calculating how many cars Drake can buy, we gotta clear the complete number up.

The widely circulated $164 million figure is approximately $164 million Canadian. The transaction is valued at roughly $117.65 million in U.S. dollars. Also, that does not mean Drake personally walked away with the entire amount. The available documents describe the value of the transaction, not a gigantic check made payable directly to Aubrey Graham. We are not certain how much bread he got.

Still, this is major. We are not going to play dumb. He just got a ton MORE money. And yet…

Drake no longer holds majority ownership of OVO’s intellectual property. Authentic Brands Group does. So, technically speaking, Drake does not possess the same final corporate authority that comes with owning more than half the property. They do.

But culturally?

That owl still flies through Drake’s orbit.

Authentic has made it clear that Drake will remain involved in shaping OVO’s creative direction. And that makes this arrangement particularly fascinating. Drake may have relinquished majority ownership while maintaining enough equity to benefit enormously if Authentic transforms OVO into a much larger international lifestyle brand. I can see it now…like Jordan.

Or Muhammad Ali, Reebok, Nautica, Champion and other properties connected to Authentic’s enormous brand portfolio. Bam. This company specializes in taking recognizable names and expanding them through licensing, retail and global partnerships.

Could OVO suddenly become much bigger than Drake could reasonably build it himself?

I think so, but experts see the gamble.

This is not selling out. Drake built OVO into something valuable enough for corporate America to spend nine figures getting inside the nest.

Now we find out whether OVO becomes bigger than Drake.