Soulja Boy Isn’t Actually Getting a $400 Million Endorsement Deal
Eyebrows were raised earlier in the month when Soulja Boy announced via Instagram that he had signed a $400 million deal. Details regarding the nature or particulars of the deal were unknown, but in the following weeks, it was revealed that Soulja had signed to FilmON TV, and that that astronomical figure is for an endorsement deal with World Poker Fund Holdings.
Forbes however has done some analysis and investigating into the deal and discovered that the figure Soulja flaunted is not representative of the cash he will receive. CNN Money reported that WPFH has a market capitalization of around $52 million and in their own annual report, the company lists losses of over $400,000 last year. According to company spokesperson Matthew Bird, Soulja's deal includes both stock and revenue-sharing.
“He really kind of jumped the gun” by using the $400 million figure, Bird told Forbes. “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.”
So there you have it. Skeptics of Soulja's initial claim were somewhat proven right based on Bird's comments. Read the full Forbes report for a better understanding of what WPFH plans to do in coming years to increase that valuation figure.