Diageo will pay $700 million initially with a further $300 million depending on the brand's performance.
Casamigos was founded by Clooney and two of his friends in 2013. The three founders of the brand will continue to promote the brand.
Diageo's other tequila brands include Don Julio, DeLeon and Peligroso.
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This article was written by a staff member of TheStreet.