Kanye West lost his billionaire status after Adidas terminated a lucrative Yeezy apparel deal in response to his string of bizarre anti-Semitic meltdowns, according to Forbes.
Of West’s estimated $2 billion fortune, a whopping $1.5 billion was attributable to his relationship with Adidas, Forbes said Tuesday. Losing the deal effectively wipes out that huge chunk of his net worth, which is now estimated at a comparatively paltry $400 million.
The estimated $1.5 billion worth of West’s Adidas deal is based on a multiple of the partnership’s annual earnings, according to Forbes. The publication noted that his remaining net worth is tied to his music catalog, real estate holdings, cash and his 5% stake in Skims, the booming shapewear brand of his ex-wife Kim Kardashian.
West, who changed his name to Ye last year, has publicly accused the media for years of underestimating the size of his business empire. During a controversial interview with NewsNation’s Chris Cuomo earlier this month, an erratic West said that “the Jewish underground media mafia” was “attacking” him – in part by misrepresenting his wealth.
“They never call me a billionaire,” West grumbled. “Hey tycoon, billionaire, visionary, inventor – these never get used.”
In its report, Forbes said West would contact the publication “every year” to complain about its ratings.
Estimates of West’s wealth have varied widely in recent years. While Forbes put the figure at $2 billion, Bloomberg claimed in 2021 that it was worth up to $6.6 billion.
Last year, The Post obtained financial documents suggesting the aggregate value of West’s Adidas segment alone could be as high as $3.7 billion.
Adidas acknowledged that its decision to sever ties with West would have a “negative short-term impact” of approximately $250 million on its net profit in 2022, due to its proximity to the critical holiday quarter.
In a note to clients, Baird analyst Jonathan Komp estimated that the Yeezy partnership generated around $1.8 billion in annual revenue and a “high 30% operating margin” for the company. .
Adidas has faced immense pressure to rescind its deal with West in recent days, with the Anti-Defamation League and several public figures calling on the company to take a stand.
“After careful consideration, the company has made the decision to immediately terminate the partnership with Ye, end production of Yeezy-branded products, and halt all payments to Ye and its companies,” Adidas said. in a statement on its decision. “Adidas will discontinue the Adidas Yeezy business with immediate effect.”
The irony of his comments about Jewish people is that his partner developing the Yeezy brand and former CEO of Yeezy is an Israeli sneakerhead, Udi Avshalom.
In an August interview with Israel 21c, Avshalom said he wanted to bring Ye to Israel to help Avshalom introduce a sneaker culture to the country. “Ultimately [Kanye] going to make peace in the world through sneakers.
It’s unclear what Avshalom thinks of West’s recent comments, but industry watchers say, ‘if Udi is giving up on Kanye, then you know Kanye really believes in this stuff about Jewish people,’ Judah said Engelmayer, a crisis public relations officer at the Post.
The company’s announcement was the latest twist in a bizarre saga for West, who has espoused anti-Semitic views on multiple occasions. The rapper had also insisted that Adidas could not end the deal.
“I’m a little sleepy tonight but when I wake up I’m gonna die a fuck 3 On The JEWS,” West wrote in an Oct. 9 tweet.
In September, West had publicly expressed his displeasure with his deals with Adidas and retailer Gap.
“These are my new moms,” West told Bloomberg News. “I guess we’re just going to have to co-parent these 350.”
“350s” is a reference to the “Yeezy Boost 350” shoes manufactured by Adidas.
Talent agency CAA also severed ties with West, as did fashion brand Balenciaga. Endeavor CEO Ari Emanuel called on companies to boycott West in response to his remarks.
New York Post