Some of hip-hop’s biggest moguls are ending the first month of 2017 with some major moves. About a week ago, it was announced that Jay Z would be selling his 33% stake in Tidal to Sprint for a sweet $200 million. Now, Russell Simmons, co-founder of Def Jam Records, is following suit with the sale of UniRush.
Russell Simmons is a true hip-hop mogul and indisputably one of the first. Anyone with an understanding of hip-hop’s humble beginnings knows that to be true (if you don’t, head to Netflix). Using his position in pop culture, alongside his entrepreneurial skills, Simmons founded UniRush in 2003 with the hopes of becoming a trailblazer in the prepaid card industry.
After years of developing the company and achieving a RushCard membership of roughly 750,000 people, Green Dot Corporation has decided to buy the company. RushCard and Green Dot are two of the oldest prepaid debit cards in the market. Simmons used his popularity to propel RushCard into the spotlight while Green Dot became the largest provider in the US by pioneering the reloadable card.
In the past few years, Green Dot has made some monumental moves in order to corner the market. Now, Green Dot has agreed to buy RushCard for $147 million cash – plus an agreed earn-out of at least $20 million – in order to add to their increasing empire.
Green Dot will not adopt any liability from the RushCard’s 2015 class-action lawsuit which stemmed from a malfunction causing cardholder’s funds to be frozen in their accounts for days to months.
With a current net worth of about $325 million, Simmons will land just under the half-a-billion mark with a lot more freedom to make more plays.
Written By Devin Robinson Jr.