Forbes reports tha tUS Rapper Kanye West has lost his title as a billionaire when Adidas terminated a lucrative Yeezy partnership deal with him as a result of his weird anti-Semitic scandal.
According to Forbes on Tuesday, October 25, of West’s estimated $2 billion fortune, a staggering $1.5 billion was owed to his partnership with Adidas. That large portion of his net worth, which is currently estimated to be a very meagre $400 million, is virtually eliminated by the deal’s failure.
According to Forbes, the estimated $1.5 billion worth of West’s Adidas contract is based on a multiple of the two companies’ combined yearly profits.
His remaining net worth, according to the tabloid, is dependent on his music library, real estate assets, cash on hand, and his 5% ownership of Skims, his ex-wife Kim Kardashian’s growing shapewear company.
“When you part ways with a massive company that is your distribution partner it has to have an impact on your bottom line,” Columbia University sports management professor Joe Favorito told The Post.
West 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 “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 are never used.”
Forbes claimed in its story that US Rapper Kanye West would contact the magazine “every year” to voice his displeasure with its assessments.
In recent years, estimates of the wealth of the West have mostly varied. Bloomberg said that he was worth up to $6.6 billion in 2021, however Forbes estimated his net worth to be $2 billion.
Financial records obtained by The Post last year indicated that the total market value of West’s Adidas division may reach $3.7 billion.
Due to its proximity to the crucial holiday quarter, Adidas stated that its move to cut ties with West will have a “short-term negative impact” of almost $250 million on its net profitability in 2022.
Jonathan Komp, a Baird analyst, estimated that the Yeezy collaboration produced “high-30% operating margin” for the business and around $1.8 billion in annual revenue in a note to investors.
“After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies,” Adidas said in a statement on its decision. “Adidas will stop the Adidas Yeezy business with immediate effect.”
