Did Beyonce take Uber for a ride?
Well, that depends on your perspective about the entertainment superstar, and her business acumen, too.
That’s because reports emerged Wednesday saying that Beyonce is in line to become $300 million richer than she already is thanks to Uber. How is that possible, you may ask?
Have you ever worked for a company, or been to a company event or conference that included a musical performance by someone who, for all intents and purposes, has no connection to that company? Sure, maybe that performer uses that company’s products at home, but they certainly don’t work for the company. These types of appearances are known by their scientific name, “corporate gigs.” And they can pay well.
Very well, in the case of Beyonce. Because back in 2015, she performed at a corporate gig for Uber in which she was ready to take her standard appearance fee of (are you sitting down?) $6 million. That’s right. For one night of singing “Single Ladies (Put a Ring on It)”, “Crazy in Love”, and, maybe Destiny’s Child’s “Say My Name” and a few other songs, Beyonce could have pocketed the equivalent of one Steve Austin (“The Six Million Dollar Man,” for those unfamiliar with the 1970s TV series.)
But, instead of taking Uber’s dough to the bank, Beyonce had other things in mind. Rather that go home with a shipping trunk full of hundred-dollar bills, she took an equity stake in Uber–also known as Uber stock. The idea being that there would be a time in the future in which Uber would go public and the value of her stock would make that $6 million fee look like the equivalent of the change in your sofa’s cushions.
And it looks like Beyonce made the right choice. Uber went public on May 10, and while the IPO failed to ignite enthusiasm on Wall Street, it was good enough to give Beyonce’s stake in the company a value of $300 million.
Look at that number again…$300 million. Beyonce could have taken that $6 million check four years ago and that would have made her look like a financial genius. But to say, in effect, “No thanks. Print off some of those shares for me instead,” and have that move return 50 times more than what she could have had?
Money managers should be falling over themselves right now to set up Beyonce Funds that invest only in whatever Beyonce likes, uses or supports.
For its part, Uber didn’t immediately respond to a request for comment about its Beyonce connection, and whether or not it is irreplaceable.
Source: Mercury news
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