Russell Simmons Sells RushCard to Rival GreenDot for $147 Million
Hip-hop mogul Russell Simmons has sold RushCard to their rival company GreenDot for $147 million.
The prepaid debit company was founded by Simmons in 2003 to help people who didn't have checking and savings accounts and relied heavily on cash to pay bills and cover other expenditures. Simmons focused on people of color and charged lower than average fees for using the service.
GreenDot announced Monday that it will buy UniRush, the parent company of the RushCard, along with the Rapid! payroll debit card. Green Dot CEO Steve Streit said one of the biggest reasons for purchasing the company was because Simmons' name is attached to it.
"Having his name associated with RushCard is a big reason why we are buying it," he said.
Along with the name, GreenDot will also inherit RushCard's customer base of 750,000 people. GreenDot will also acquire Rapid!'s 2,500 corporate customers who use the card to pay employees who may not have regular banking. GreenDot plans on retaining the RushCard name along with its other products.
Russell Simmons used social media to dispel comments that were made by the public accusing him of being a sellout and no longer having to work because of the deal.
"I go to work Monday just as I have for the last 14 years just now I have additional resources. I'm sorry you have wrong info," he said.