Authentic Brands Group has acquired a majority stake in the intellectual property of OVO, the “premium lifestyle” apparel and brand company co-founded by Drake. Financial terms were not disclosed.
According to a media release issued Thursday (August 27), Drake will retain “a significant ownership stake” in the brand and continue “shaping its creative vision” alongside Authentic.
As part of the transaction, Authentic network partner Vince Holding Corp. (Nasdaq: VNCE) has acquired OVO’s operating business and will oversee the brand’s design, product development, merchandising, and retail stores.
Vince Holding Corp. will operate as OVO’s core apparel licensee, something Authentic says reflects its model of “pairing brands with best-in-class operators to drive long-term growth.”
OVO joins a portfolio of global sports, fashion, entertainment, and lifestyle properties at Authentic, whose owned roster includes sportswear brands Reebok and Champion, plus Brooks Brothers, Sports Illustrated, and the Care Bears.
Authentic also works with the likes of Shaquille O’Neal, David Beckham, Kevin Hart, and more.
OVO was co-founded by Drake, Oliver El-Khatib, and Noah “40” Shebib in 2008.
The brand, with its distinct owl logo, expanded into clothing and retail, and now operates 12 flagship stores alongside its e-commerce business, according to Authentic.
OVO is led by Chief Executive Officer Drex Jancar. (Drake‘s owned music recordings sit under his OVO Sound label.)
Said Drake of the Authentic deal: “We’re just a couple kids from Toronto who started something we believed in. Here we are 20 years later, same kids with bigger dreams. Authentic and VNCE are the perfect partners to help us continue to grow.”
“OVO has earned a place among the world’s most influential lifestyle brands because it has always stood for something authentic and unmistakable,” said Jamie Salter, Founder and Executive Chairman of Authentic. “Drake and his team have built something with incredible cultural influence.
“We see a significant opportunity to take that even further, opening new markets, building new businesses and reaching more people around the world without losing what makes OVO, OVO.”
Brendan Hoffman, Chief Executive Officer of Vince Holding Corp, added: “Few brands combine influence, elevated style and approachability the way OVO does.
“We are proud that Authentic has chosen us as their partner and we are energized by the trust that comes with it. OVO’s creative and design identity remains its own, and our role is to support that vision and bring it to more consumers around the world.”
Authentic has moved into the music business before, via the major music companies.
In November 2021, Universal Music Group and Authentic launched a strategic alliance to acquire and manage artist brands, targeting name and likeness rights.
Five months later, Universal Music Publishing Group struck an exclusive global deal with Authentic, owner of Elvis Presley Enterprises, to represent the Presley song catalog outside the UK.
On the recorded music side, Drake‘s OVO Sound label secured an investment from Sony Music‘s Santa Anna Label Group in January 2024.
OVO Sound artists were previously distributed by Warner Music Group‘s ADA.
Universal Music Group owns the bulk of Drake‘s earlier recording catalog, having bought the Cash Money catalog in 2021.
Drake has owned his modern recordings since that year’s Certified Lover Boy, released via OVO/Republic Records.
Authentic says its brands drive more than USD $38 billion in annual systemwide retail sales worldwide.Music Business Worldwide