Rockstar Energy Beverages founder Russ Weiner has made $3.85 billion following a deal to sell the business to PepsiCo, Inc. (NASDAQ:PEP) even as markets continue to struggle.
Weiner sells Rockstar drinks
The 49-year-old founder of the energy beverage company almost two decades ago to compete with Red Bull. The company offers a range of energy drinks in cans that are twice the size offered by Red Bull at the same price. Over the years, Rockstar has exploded in growth, and Weiner’s stake is around 85%; thus, he will receive a considerable amount from the deal.
Once the deal closes, capital gains could lower Weiner’s fortune by almost $900 million, but he will still be more liquid. According to the agreement, Weiner will receive around $700 million from Pepsi in tax benefits related to the agreement, which shall be payable in 15 years.
While commenting on the deal, Weiner indicated that the move by PepsiCo is an indication that the American dream is well and alive. He added that it is a sign of faith from Pepsi on the future and what Rockstar has created. Weiner stated that the deal was a bright star in the middle of a hailstorm in reference to the beating markets are experiencing.
Weiner has enough cash to pursue other things
Weiner, who says that he has been running the company in the last 20 years for 24 hours a day, stated that he will now be free to do whatever he wants. He says the timing is perfect for his life, and he will have adequate money to pursue other things without having to worry about commitments to the company.
His mother, Janet, who is the CFO of Rockstar and owns a 15% stake in the company, has her big plans. She wants to dedicate her life to protecting wildlife and helping animals in rescue centers. This is in line with the Yachak Organic, which is family-owned as a natural alternative to the company. Profits from the business will go to environmental conservation protection of endangered wildlife species.