Rapper Drake’s OVO could potentially earn a significant amount of money, as rumors suggest that Authentic Brands Group is considering acquiring a 50% stake
Authentic Brands Group currently possesses Reebok, Champion, and Sports Illustrated, along with various celebrity estates.
Drake’s OVO is said to be in discussions to sell a 50 percent stake in its apparel business to Authentic Brands Group, a development that could position the owl logo within one of the largest licensing networks in fashion and entertainment. October’s Very Own, the brand co-founded by Drake, Oliver El-Khatib, and Noah “40” Shebib, is currently in the process of selling half of the company to Authentic, although the timing and terms of the reported deal are still unclear.
That buyer is important. Authentic Brands Group boasts a diverse portfolio of over 50 brands, generating more than $36 billion in annual systemwide retail sales through a network of over 1,700 licensing partners in 150 countries. Its roster features Reebok, Champion, Sports Illustrated, Shaquille O’Neal, David Beckham, Kevin Hart, Elvis Presley, Muhammad Ali, Marilyn Monroe, GUESS, Aéropostale, Nautica, Eddie Bauer, Lucky Brand, Nine West, Brooks Brothers, Juicy Couture, Quiksilver, Billabong, Volcom, Roxy, DC Shoes, Prince, Sperry, Hunter, and Dockers.
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For OVO, the strategy is clear: expand without the need to develop every avenue from the ground up. OVO’s apparel business primarily focuses on logo-centric essentials, featuring $62 t-shirts and $162 hoodies, and indicated that a collaboration with Authentic could lead to expanded licensing possibilities. A partnership with Authentic could open up further licensing avenues for OVO.
That could provide advantages for Drake in several respects. Authentic’s model focuses on owning intellectual property and licensing brands through external partners. This approach allows OVO to potentially broaden its reach into additional categories, retail channels, and global markets, all while preserving the cultural identity that initially contributed to the owl’s value. Authentic presents itself as a digital-first, asset-light platform that brings brands to life through storytelling, content, live experiences, and licensing partnerships.
The financial aspect is where matters become complicated. No sale price has been disclosed. Boardroom reported in 2023 that OVO Clothing generates over $50 million in annual sales.
Since the reported deal involves a 50 percent stake, the calculations hinge solely on OVO’s valuation. A $100 million valuation would yield $50 million before taxes, fees, and any ownership divisions. At a valuation of $200 million, a 50 percent stake would amount to $100 million. At $300 million, it would amount to $150 million. Those figures do not reflect reported deal numbers; they are simply valuation calculations derived from the size of the stake.
Regardless, the signal is strong. OVO is already a well-known name in streetwear, but collaborating with Authentic would integrate Drake’s brand into a licensing powerhouse designed to expand logos, estates, and cultural intellectual property worldwide.
