Well, looks like Soulja Boy won’t quite be getting $400 Million for his deal he inked with World Poker Fund. Some people we’re skeptical about the deal from the start when Soulja took to Twitter to tweet about it earlier this month but now we have more information about the deal. Turns out that World Poker Fund paid Soulja Boy in stock in exchange for him pushing the brand’s product, with him receiving 1.5 million shares in the company.
World Poker Fund has other shareholders including Tyga, Floyd Mayweather, Kyle Massey, Justin Beiber, & Justin Beiber’s songwriter, Poo Bear. World Poker Fund is publicly traded, meaning anybody (including me or you) can buy stock in the company. Each share is worth $1.70 at the moment meaning Soulja’s holdings in the company is estimated at $2.5 million not $400 Million.
A spokesperson for the company, Matthew Bird, told Forbes, “He really kind of jumped the gun,” speaking on Soulja saying he signed a $400 Million deal. “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.”
The whole situation still falls on World Poker Fund being they put out a statement last week confirming the $400 Million deal.