Soulja Boy Isn't Actually Getting $400 Million From World Poker Fund
People were shocked when Soulja Boy tweeted about landing a $400 million deal, then the internet blew up when World Poker fund revealed themselves as the company involved and confirmed that the deal was indeed true. Still, quite a few people were suspicious about the deal and the company, and rightfully so as it turns out, WPFH itself isn't even worth $400 million USD.
World Poker Fund spokesperson, Matthew Bird, decided to clear things up and reveal a few more details. According to Bird, Soulja Boy will be joining World Poker Fund'sCelebrityWorld.com, which is a "celebrity owned social gaming site" that will be integrated into WPFH's upcoming in-flight gaming system. Bird claims thatCelebrityWorld.com is already earning revenue though it's still in beta. World Poker Fund values its in-flight gaming system at $570 million USD, according to Bird that valuation is calculated through "traditional incentive-based gaming assumptions." That however is not yet reflected in the company's worth. According to CNNMoney, WPFH has a market capitalization of $52 million USD, with over $400,000 USD of losses in the last year.
Basically, the deal with Soulja Boy is capped at $400 million, and that includes both stock and revenue sharing. "He really kind of jumped the gun. 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," says Bird.
Bird claims another "mega-celebrity" will be joining its roster. It was also recently revealed that both Justin Bieber and Floyd Mayweather are both shareholders in the company.
Source: hypebeast.com
