Ryan Reynolds is the latest celebrity to see his business venture blossom into a major acquisition. On Wednesday, legacy network provider T-Mobile (TMUS) finalized its purchase of the Reynolds-backed Mint Mobile for $1.35 billion.
The sale consists of 61% in stock and 39% in cash. Reynolds — who holds a minority ownership stake in Mint Mobile — will continue to be the face of the company on marketing fronts as the actor has goals to “continue for years" with the service provider, according to Mint Mobile co-founder, David Glickman.
“We are so happy T-Mobile beat out an aggressive last-minute bid from my mom Tammy Reynolds as we believe the excellence of their 5G network will provide a better strategic fit than my mom’s slightly-above-average mahjong skills,” Reynolds said jokingly in a statement.
It isn't the first time that major companies have gotten involved in celebrity business ventures.
Similarly, other celebrities with large private businesses, especially in the alcohol and cosmetics industries, have sold their stake to bigger corporations.
Here's a look at some of those buyouts:
The pandemic years saw a rise in celebrity alcohol businesses, and it has proven to be profitable.
And even after a buyout, most celebrities remain the face of the company.
Reynolds has been at the forefront of promoting luxury alcohol brand Aviation Gin, which was acquired by Diageo (DEO) for $610 million in 2020.
The deal included "an ongoing ownership interest" between the two, but Aviation Gin wasn't Reynolds' creation. He became co-owner in 2018, and has promoted the gin on talk shows and even in his superhero movie "Deadpool."
"I've tried every gin on the planet and Aviation is, hands down, the best," Reynolds said. "Also, I don't recommend trying every gin on the planet. Stick with this one."
Since the acquisition, Aviation Gin has been growing. The company has extended partnerships with international airlines like British Airways and by September 2022, the company launched a 33,000-square-foot distillery with interactive tours for visitors.
Diageo has been involved with other celebrity business ventures before — the alcoholic beverage company acquired actor George Clooney's tequila company Casamigos for $1 billion in 2017. Similar to Aviation Gin's deal with Diageo, Clooney was able to stay on with the company after the buyout.
"This reflects Diageo’s belief in our company and our belief in Diageo," Clooney told CNBC at the time. "But we’re not going anywhere. We’ll still be very much a part of Casamigos. Starting with a shot tonight. Maybe two."
Like Diageo, other corporations have invested in celebrity spirits businesses.
"Breaking Bad" stars Aaron Paul and Bryan Cranston's mezcal company Dos Hombres Mezcal gave a minority stake to spirits wholesaler Constellation Brands (STZ) in 2021.
Proximo, the parent company of comedian Kevin Hart's tequila brand bought MMA fighter Conor McGregor's Irish whisky brand for $600 million in April 2021.
"The Vampire Diaries" co-stars Ian Somerhalder and Paul Wesley's joint venture Brother's Bond Bourbon shipped 50,000 cases within the first four months of the company's launch in 2021, with pre-sales reaching $1.4 million.
In February 2022, German spirits giant Mast-Jägermeister gained a stake in actor Dwayne 'The Rock' Johnson's Teremana Tequila.
Thomas Ashbourne Craft Spirits brought together a bigger celebrity collaborative spirit three months later by creating a founding team with Sarah Jessica Parker, John Cena, Ashley Benson, Rosario Dawson, Vanessa Hudgens, and Playboi Carti — each of whom introduced their own blend of ready-to-drink premium cocktails.
Long before the spirits business became a trend in Hollywood, skincare and cosmetics were major sources of revenue for celebrities.
These ventures have helped to make some of them billionaires.
A majority of Rihanna's net worth comes from her makeup line, Fenty Beauty, which helped her reach billionaire status in 2021. Fenty Beauty has a partnership with LVMH (MC.PA), a French multinational luxury goods corporation that has the likes of Louis Vuitton and Givenchy within its holdings.
Acquisitions are frequent in the beauty industry as well. Influencer Kylie Jenner, who first launched Kylie Cosmetics in 2015, sold 51% ($600 million) of the company's stake to beauty giant Coty (COTY), the parent company of Sally Hansen and CoverGirl. With the acquisition announcement, pre-market shares of COTY jumped 6%, as the Kylie Cosmetics valuation from Coty at the time stood at $1.2 billion.
Other major players in the cosmetics field include Selena Gomez, Ariana Grande, and Lady Gaga, whose products can be found in common marketplaces like Sephora, Ulta Beauty (ULTA), and even Amazon (AMZN).
Last month, Forma Brands — who had a license agreement with Ariana Grande's makeup company r.e.m. Beauty — filed for bankruptcy with over $868 million worth of debt. Grande has now agreed to a buyback deal for goods worth $15 million.
Apart from skincare and makeup, haircare and nail polish brands have been expanding for celebrities as well. "Insecure" star Issa Rae became an equity partner of Sienna Naturals in September 2020 while artists Machine Gun Kelly and Harry Styles introduced their gender-neutral nail polish in 2021.
And last month, actress Tracee Ellis Ross' Pattern Haircare launched at Macy's (M).
Tanya is a data reporter at Yahoo Finance. Follow her on Twitter @tanyakaushal00.
Read the latest financial and business news from Yahoo Finance
NASA and Axiom have revealed the spacesuit Artemis astronauts will use on the Moon.
(Bloomberg) — T-Mobile US Inc. is buying Mint Mobile, the budget wireless provider partly owned by actor Ryan Reynolds, for as much as $1.35 billion in an effort to bolster its prepaid phone business and reach more lower-income customers.Most Read from BloombergFirst Republic Bank Is Said to Weigh Options Including a SaleCredit Suisse Reels After Top Shareholder Rules Out Raising StakeRyan Reynolds-Backed Mint Is Bought by T-Mobile for $1.35 BillionIn New York City, a $100,000 Salary Feels Like
SVB’s new CEO Tim Mayopoulos has had a lot to say in the 24 hours since he joined the bank on Monday. In a private Zoom meeting run by SVB for a select number of LPs and investors, he asked clients to return deposits to the institution, Natasha M reports. Mint-y acquisition: The big news for today is that T-Mobile is acquiring Mint Mobile’s parent company — you know, the company that Ryan Reynolds has a stake in — in a deal valued at $1.35 billion.
(Bloomberg) — Charles Schwab Corp. saw $8.8 billion in net outflows from its prime money market funds this week as investors rattled by turmoil at US banks plowed even more money into the brokerage’s other portfolios that favor assets with government backing.Most Read from BloombergFirst Republic Set to Get $30 Billion of Deposits in RescueIn New York City, a $100,000 Salary Feels Like $36,000Schwab Clients Shift From Prime Funds to Government PortfoliosFirst Republic Bank Is Exploring Options
While Ark Invest owner Cathie Wood is beloved by some and reviled by others, one thing is for sure — whatever she does in the world of finance gets plenty of attention. Another sector Wood has been bullish on is crypto — despite major collapses in 2022 that sent many investors running for the hills in a panic. Nine investors put in a total of $7,281,630, raised by The ARK Crypto Revolutions U.S. Fund LLC. The additional eight million was raised by the ARK Crypto Revolutions Cayman Fund LLC. Both funds are private and open to a limited number of investors.
Will Silicon Valley Bank’s collapse influence the policy makers to take a more forgiving stance regarding its interest rate hiking endeavors? Word on the Street is that it is a possibility, but David Rubenstein is not so sure – the billionaire investor thinks the Fed will find the middle ground in its continued efforts to rein in inflation. “I suspect 25 basis points is the split-the-baby decision that’s most likely,” Rubenstein said ahead of the Federal Reserve’s meeting next week. Whether Rube
Warren Buffett's Berkshire Hathaway added over $467 million worth of Occidental Petroleum shares.
Dividend stocks are the Swiss army knives of the stock market. When dividend stocks go up, you make money. When they don’t go up — you still make money (from the dividend). Heck, even when a dividend stock goes down in price, it’s not all bad news, because the dividend yield (the absolute dividend amount, divided by the stock price) gets richer the more the stock falls in price. Knowing all this, wouldn’t you like to find great dividend stocks? Of course you would. Wall Street analysts have chim
‘Buy the dip’ has not become the ubiquitous phrase it is for no reason. With bank stocks recently falling in unison whether they are in danger of meeting the same fate as SVB and Signature bank or not, there are plenty of ‘buy the dip’ opportunities investors can take advantage of right now. And that’s what one CEO has been doing. Having watched shares of his firm Charles Schwab drop by more than 30% since the crisis began, CEO Walter Bettinger said on Tuesday that he purchased 50,000 shares for
(Reuters) -Goldman Sachs said deposits have started to move out of U.S. banks and towards money markets funds, as investors seek the safety in Treasury securities amid worries about stresses in the banking sector. Retail money market funds have seen large and accelerating inflows over the last week, Goldman said in a note on Thursday, likely suggesting some migration away from deposits. Following the collapse of SVB Financial Group and Signature Bank, U.S. regional bank stocks have had a bruising last few days, as investors worried about possible deposit outflows causing capital issues at other regional banks.
First Republic Bank received $30 billion in bailout money from a variety of other banks, including Morgan Stanley and PNC Bank who might offer to purchase FRB.
https://cdn.benzinga.com/files/images/story/2023/03/16/37404189-3d5f-4533-9f0f-aa02d0a40783.jpeg?optimize=medium&dpr=2&auto=webp&crop=1200%2C800 Trading below book value and paying a dividend are two key characteristics of a value stock, and these three real estate investment trusts (REITs) qualify: Dynex Capital Inc. (NYSE: DX), Hersha Hospitality Trust (NYSE: HT) and RPT Realty (NYSE: RPT) may be worth a closer look for investors seeking those qualities. No guarantees of profitability exist, a
With bank stocks fluctuating wildly this week after Silicon Valley Bank’s collapse, Charles Schwab CEO Walt Bettinger and other insiders bought the dip, according to Securities and Exchange Commission filings. Charles Schwab stock (ticker: SCHW) is down about 28% over the past month. Amid the stock’s turmoil on Monday, Bettinger and founder Charles Schwab published a statement to reassure investors.
Dividend-paying stocks are consistent, defensive and tend to outperform over time, writes Michael Brush.
One area of the market that has performed well YTD, and held up over the last month is Tech
Forget the oil producers. Look for deals in services and refining.
THE ADVICER MarketWatch Picks has highlighted these products and services because we think readers will find them useful; the MarketWatch News staff is not involved in creating this content. Links in this content may result in us earning a commission, but our recommendations are independent of any compensation that we may receive.
High levels of uninsured deposits helped do in Silicon Valley Bank and Signature Bank. But it turns out they're not alone.
U.S. stocks rallied on Thursday following a capital injection from 11 of the country's biggest banks into troubled lender First Republic.
Based on the average brokerage recommendation (ABR), Micron (MU) should be added to one's portfolio. Wall Street analysts' overly optimistic recommendations cast doubt on the effectiveness of this highly sought-after metric. So, is the stock worth buying?