Mentioned:
Drake has sold a majority equity stake in the intellectual property of OVO. And Authentic Brands and a publicly traded company on the Nasdaq are behind it.
What’s happening:
- Authentic Brands has acquired a 51% equity stake in OVO’s intellectual property
Why it matters:
- OVO is the merchandising and clothing brand co-founded by Drake, Oliver El-Khatib and Noah Shebib which runs a global e-commerce business as well as 12 operating stores across Canada, the United States and the United Kingdom
Going deeper:
- Authentic Brands owns 51% of OVO’s intellectual property with Drake maintaining a 44% ownership stake and Vince Holdings owning the remaining 5%
- Vince Holdings (NASDAQ: VNCE) has publicly stated that they plan to leverage their minority ownership stake in OVO’s intellectual property to launch an OVO wholesale business through their relationships with national department stores and expand OVO's retail store presence in the United States
The intrigue:
- Authentic Brands previously purchased a 75% equity stake in Vince Holdings’ intellectual property for roughly $76.5M USD in cash
