Canadian rapper Drake sells majority stake in IP of his lifestyle brand OVO to Authentic Brands Group for reported $118m

Image: Authentic

Authentic Brands Group (Authentic), a global brand and entertainment platform, today announced the acquisition of a majority stake in the intellectual property of OVO, the premium lifestyle/streetwear brand co-founded by Drake.  

Drake keeps 44% of OVO, while retail platform operator Vince Holding Corp (also known as VNCE), a long-standing Authentic partner, will hold the remaining 5%.

According to a release issued by Vince, it “will own and operate OVO's business as OVO’s core apparel and retail licensee, marking the first expansion of its multi-brand platform strategy beyond Vince, and will build on OVO's existing operations using its scale and infrastructure to support the brand's next phase of growth.” 

The statement adds: “Under the terms of the transaction, Authentic formed a new subsidiary which holds OVO’s IP, under which Authentic owns 51%, Drake owns 44%, and VNCE owns the remaining 5%. A portion of the proceeds from the sale of OVO’s IP was used to strengthen the balance sheet of OVO's operating business, which VNCE then acquired.” 

Founded by school friends Aubrey “Drake” Graham, Oliver El-Khatib, and Noah “40” Shebib in 2011 as a spin-off from their Canadian record label, OVO Sound, OVO Streetwear enjoyed considerable success until 2022, but then started to lose money.  

In June this year, a US lender, ARI, filed suit in a Canadian court claiming C$5m in unpaid debts. 

Authentic said in a statement:

“OVO has established itself as one of the most recognized brands in contemporary streetwear. Known for its distinctive owl logo and black-and-gold aesthetic, the brand has built its reputation on collaboration-led product drops and a close connection to its customer base. OVO currently operates 12 stores across Canada, the United States, and the United Kingdom, in addition to its e-commerce platform.” 

Authentic already either owns or has licensing rights to the IP behind a range of famous fashion, personality, music, and media brands, including Reebok, David Beckham, Sports Illustrated, Elvis Presley, Muhammad Ali, Marilyn Monroe, and Hunter Boots. In July this year, it bought the intellectual property (IP) of the Care Bears for an undisclosed sum. In August, a group of investors in British luxury car marque Aston Martin threatened legal action over plans to sell a majority stake in the motor company’s non-automotive IP to Authentic. 

Jamie Salter, Founder and Executive Chairman of Authentic, said in the company’s statement:

“OVO has earned a place among the world's most influential lifestyle brands because it has always stood for something authentic and unmistakable. Drake and his team have built something with incredible cultural influence. 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.”