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Kanye West Is No Longer A Billionaire After Adidas Cut Ties With Him Over Anti-Semitic Remarks

Rapper Kanye West no longer a billionaire after Adidas terminates deal

Kanye x Addidas

Kanye x Addidas

 

Forbes reports that Kanye West lost his title as a billionaire when Adidas terminated a lucrative Yeezy partnership as a result of his weird anti-Semitic incident.

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 meager $400 million, is virtually eliminated by the deal’s failure.

According to Forbes, the estimated $1.5 billion value of West‘s contract with Adidas is based on a multiple of their combined annual revenue.

 

According to the article, his remaining net worth is dependent on his music library, real estate assets, cash on hand, and his 5% ownership of Skims, his ex-wife Kim Kardashian’s rapidly expanding 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.

For years, West has publicly charged that the media has underestimated the scope of his commercial empire. An unstable West claimed that “the Jewish underground media mafia” was “attacking” him in a contentious interview with NewsNation’s Chris Cuomo earlier this month, in part by exaggerating his fortune.

 

“They never call me a billionaire,” West grumbled. “Hey, tycoon, billionaire, visionary, inventor — these are never used.”

According to Forbes’ account, West would contact the magazine “every year” to voice his displeasure with its estimations.

 

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.

 

In a note to clients, Baird analyst Jonathan Komp estimated the Yeezy partnership generated about $1.8 billion in annual revenue and “high-30% operating margin” for the company.

 

“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.”

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Written by Kester E.

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