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Kanye West has lost his status as a billionaire after\u00a0Adidas ended a lucrative Yeezy deal in response to his bizarre anti-Semitic scandal, according to Forbes
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Of West\u2019s estimated $2 billion fortune, a whopping $1.5 billion was attributable to his relationship with Adidas,\u00a0Forbes said\u00a0on Tuesday, October, 25,\u00a0\u00a0The loss of the deal effectively erases that massive chunk of his net worth, which is now estimated to be a comparatively paltry $400 million.
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The estimated $1.5 billion value of West\u2019s Adidas deal is based on a multiple of the partnership\u2019s annual earnings, according to Forbes.
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The publication noted his remaining net worth is tied to his music catalog, real estate holdings, liquid cash, and his 5% stake in Skims, his ex-wife Kim Kardashian\u2019s burgeoning shapewear brand.<\/p>\n
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\u201cWhen you part ways with a massive company that is your distribution partner it has to have an impact on your bottom line,\u201d Columbia University sports management professor Joe Favorito told The Post.
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West has publicly accused the media for years of underestimating the size of his business empire. During a controversial interview with\u00a0NewsNation\u2019s Chris Cuomo\u00a0earlier this month, an erratic West said \u201cthe Jewish underground media mafia\u201d was \u201cattacking\u201d him \u2013 in part by misrepresenting his wealth.
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\u201cThey never call me a billionaire,\u201d West grumbled. \u201cHey, tycoon, billionaire, visionary, inventor \u2014 these are never used.\u201d
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In its report, Forbes said that West would contact the publication \u201cevery year\u201d to complain about its valuations.
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Estimates about the West\u2019s wealth varied widely in recent years. While Forbes placed the number at $2 billion, Bloomberg asserted in 2021 that he was worth as much as $6.6 billion.
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Last year,\u00a0The Post obtained financial documents\u00a0suggesting the overall value of West\u2019s Adidas segment alone could be as high as $3.7 billion.
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Adidas acknowledged that its decision to sever ties with West would have a \u201cshort-term negative impact\u201d of approximately $250 million to its net income in 2022, due to its proximity to the critical holiday quarter.
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In a note to clients, Baird analyst Jonathan Komp estimated the Yeezy partnership generated about $1.8 billion in annual revenue and \u201chigh-30% operating margin\u201d for the company.
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\u201cAfter 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,\u201d Adidas said in a statement on its decision. \u201cAdidas will stop the Adidas Yeezy business with immediate effect.\u201d<\/p>\n
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