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Parlux Breaks Ground: Jay-Z, Rihanna and Kanye Get a New Kind of Deal
In one of the most unusual deals in the glitzy annals of celebrity licensing, Shawn Jay-Z Carter, Rihanna and Kanye West are entering into a relationship with Parlux Fragrances Inc. that departs dramatically from the licensing norm.
The hip-hop stars, along with an unidentified well established female artist, are becoming partners with the Fort Lauderdale, Fla.-based firm through a deal with Iconic Fragrances LLC, a firm in which Jay-Z is a major principal and Rihanna and West are licensees.
Instead of receiving cash from licensing royalties, the stars will get royalties and profit sharing in the fragrance brands they launch. But most of the payoff will be through warrants to buy Parlux stock.
Neil Katz, chairman and chief executive officer...