Rapper 50 Cent makes $10m after plugging stock on Twitter
Published 12/01/2011 | 12:43
Rapper and 50 Cent has made $10m (€7.7m) on the stock market in two days after using Twitter to promote a marketing company that he owns a part share of, it was reported.
The former drug dealer, whose debut album sold 10 million copies, guaranteed his 3.8m followers "big money" if they bought stock in H & H Imports.
His company, G-Unit Brands, owns 12.9pc of H & H Imports, which is a parent company of TV Goods – the firm responsible for marketing 50 Cent's new range of headphones, Sleek by 50 Cent.
50 Cent wrote that H & H Imports, which trades under the stock name HNHI, had "one of the 15 products this year. If you get in technically I work for you. BIG MONEY".
In the following two days 9.24 million shares in the company were traded, causing its share value to soar.
It was a huge boost for a company that in the three months to the end of September was operating at a loss with a $3.3m (€2.5m) deficit and only $198,000 (€153,000) cash.
50 Cent bought his stock in the company on November 30, a week after it offered buyers 180 million shares at 17 US cents (13c) each, The Guardian reported.
Weeks later the rapper decided to plug the company on Twitter, causing its share value to rise from four cents to nearly 50 US cents each, closing on Monday at 39 cents.
He later deleted his original tweets and wrote: "I own HNHI stock. Thoughts on it are my opinion. Talk to financial adviser about it."
A spokesman for the Securities and Exchange Commission declined to comment, saying: "We never confirm or deny whether an investigation is ongoing."