Pepsi, in a move that averts a threatened boycott of the soft-drink company, has agreed to make a substantial donation to the Ludacris [ tickets ] Foundation.

The Hip-Hop Summit Action Network, headed by rap mogul Russell Simmons, announced plans last week to boycott Pepsi after a dispute over the company's pulling of a television advertisement starring rapper Ludacris.

According to the Hip-Hop Summit Action Network, a "multi-million dollar, multi-year agreement" was reached on Monday (2/11) between Pepsi, the hip-hop organization and the Ludacris [ tickets ] Foundation. Under the agreement, the soft-drink company and the Ludacris Foundation will distribute million of dollars to grassroots, nonprofit organizations serving the needs of disadvantaged youth in the U.S.

"We've come to an agreement where the common ground is young people," a Pepsi spokesperson said in a statement. "We're working together on a multiyear, multi-city effort that will encourage kids to express their creativity in the visual and performing arts.

"What we're planning will be an extension of our long-standing community relations and urban marketing programs. We will focus particularly on young people who would not otherwise have the opportunity to get involved in art and music."

Simmons, in a statement, said "Pepsi's commitment should be followed by others in corporate America who desire to empower youth."

Pepsi pulled a 30-second spot starring Ludacris last year after Fox News Channel commentator Bill O'Reilly bashed the company for signing the rapper as a pitchman. O'Reilly said Ludacris "espouses violence, degrading sex and substance abuse."

The company, which said it was receiving complaints about Ludacris' lyrics, pulled the advertisement the next day. The ad itself--which showed Ludacris rapping at a party--didn't contain any questionable lyrics.

At the time Pepsi pulled the ad, Simmons didn't object. But, he said at a press conference last week, when he saw an ad for Pepsi Twist featuring the foul-mouthed Osbourne family during the Super Bowl, he became upset by the apparent double standard.