Authentic Brands takes majority stake in Drake's OVO label
What's the deal? Authentic Brands GroupDealroom has a profile for this one. Try Dealroom → has acquired a majority stake in October's Very Own (OVO)Dealroom has a profile for this one. Try Dealroom →, the lifestyle brand founded by rapper Drake. He retains a minority stake and will continue shaping the brand's creative vision.
Who does what? Authentic is a licensing firm — now the second largest licensor in the US behind The Walt Disney CompanyDealroom has a profile for this one. Try Dealroom →. OVO combines celebrity and fashion into a single apparel brand, launched in Toronto two decades ago.
What changes? Authentic will work with apparel company Vince Holding Corp.Dealroom has a profile for this one. Try Dealroom → on design, product development, and retailing of OVO products.
Why now? Authentic has built its scale by signing deals with celebrities including Kevin Hart, Shaquille O'Neal, and David Beckham, and by acquiring brands such as Brooks BrothersDealroom has a profile for this one. Try Dealroom →, ChampionDealroom has a profile for this one. Try Dealroom →, Sports IllustratedDealroom has a profile for this one. Try Dealroom →, and the Care Bares. OVO fits that celebrity-plus-fashion playbook.
What's the endgame? "We see a significant opportunity to take that even further, opening new markets, building new businesses and reaching more people around the world without losing what makes OVO, OVO," said Jamie Salter, founder and executive chairman of Authentic.
Drake framed the deal as a growth move. "We're just a couple kids from Toronto who started something we believed in. Here we are 20 years later, same kids with bigger dreams," he said. "Authentic and VNCE are the perfect partners to help us continue to grow."
The signal: The deal extends Authentic's strategy of buying recognisable names and scaling them through licensing partners. Bringing a celebrity-driven streetwear label under the same model tests how far that consolidation approach reaches into culture-led fashion.
Read more: hollywoodreporter.com
Image credit: ChoudhrySaab
