Billionaire Rapper Jay-Z Investing $16.5 Million in a Startup Might Not Sit Well With Shaquille O’Neal’s $11 Million Deal

Shaquille O’Neal has evolved in terms of investing and business growth over the year. The Big Diesel bet on entrepreneurship after the end of his long and successful NBA career. The four-time NBA champ has invested in brands like Papa John’s pizza, Auntie Annie’s, Car Washes, Five Guys, 24-hour Fitness, and Krispy Kreme.

Shaquille O’Neal continued his partnership with the fourth largest pizza delivery chain in the US by signing a three-year deal with Papa John’s worth over $11 million in April. However, rapping legend Jay-Z’s major investment in a rival pizza chain recently could pose a problem to the growth of Shaq’s pizza brand.

JAY-Z invests $16.5 million in Stellar Pizza

Jay-Z is also a successful entrepreneur and businessman. His smart investments have earned him a net worth of $1.3 billion. Recently, the American rapper’s venture capital firm Marcy Venture Partners invested $16.5 million into Stellar Pizza chain based in California. The startup presents a unique mobile-truck setup with the promise of delivering ready-to-eat pizza in less than five minutes.

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Three former SpaceX engineers started Stellar Pizza with the concept of using robots to prepare pizza. A loaded mobile truck is capable of serving 420 pizzas before needing a refill of supplies.

Jay-z’s investment is a tremendous boost for the unique startup. Stellar Pizza has been working on capturing the attention of college students in recent times. With enough resources in the bag, Stellar Pizza could certainly emerge as a major competitor for Shaq and his Papa John’s pizza.

Can Jay-Z’s investment pose a threat to Shaquille O’Neal’s Papa John’s?

Shaquille O’Neal renewed his deal with Papa John’s in April. His previous endorsement agreement came to an end in March 2022. The new terms will deliver $5.625 million in cash payments for a period of three years. Moreover, O’Neal also introduced his Shaq-a-Roni pizza on Papa John’s menu. The sale of these pizzas will bring Shaq a royalty payment of 20 cents per co-branded pizza when the amount exceeds his contractual payment in a year.

Shaq will also fulfill the responsibilities of a brand ambassador. The pizza brand also raised $7 million in two years for the PapaJohn’s Foundations for Building Community. Shaq also actively works to give back to the people. Hence, the initiative aligns with Shaq’s mentality and the aim is to deliver long-term positive impacts on the community. In addition, O’Neal also has 55,498 restricted stocks worth about $5.6 million.

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However, Jay-Z’s investment in the Stellar pizza brand could pose a threat to Shaq’s Papa John’s in the future. It will be interesting to see if Stellar Pizza gets enough recognition to compete with Shaq’s more humanistic brand, which is quite reputable in the country currently.