Kanye West’s net worth scuttled by an estimated $1.6 billion on Tuesday after Adidas announced it would end its partnership with the rapper amid controversy surrounding the rapper’s anti-Semitic and hateful comments on social media.
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“After a thorough review, the company has made the decision to immediately end its partnership with Ye, discontinue production of Yeezy-branded products and stop all payments to Ye and its companies. Adidas will discontinue the Adidas Yeezy business with immediate effect. stop,” said Adidas in a release.
According to reportsThe Adidas x Kanye West partnership generates approximately $2 billion in revenue for the company each year, an estimated 10% of the company’s total annual revenue.
The severing of ties brings West’s current net worth to an estimated $400 million.
Original story below.
Artist Kanye West is now the richest black man in American history, People reports.
The 43-year-old rapper, whose hit singles include “Stronger,” “Heartless” and “Gold Digger,” is worth about $6.6 billion — less than a year after he first appeared on Forbesannual billionaires list. The jump is largely attributed to West’s sneaker and apparel brand Yeezy, which is currently valued between $3.2 billion and $4.7 billion by UBS Group AG.
Although West initially claimed his net worth was over $3 billion in April 2020, Forbes disputed the figure at the time, bringing the number closer to $1.3 billion.
Related: 3 Entrepreneurial Lessons to Learn from Kanye West
The rapper has full ownership and creative control of Yeezy, but also has a partnership agreement with Adidas AG and – more recently – Gap Inc. West signed a 10-year deal with the latter company in June 2020. A Bloomberg report notes that the value of that particular partnership “could be worth as much as $970 million of that total.”
In addition to his Yeezy brand, West reportedly has $122 million in cash and stock. He also has $110 million from his music catalog (the rapper has released nine studio albums and three collaborative albums to date) and $1.7 billion in other assets — including a stake in his estranged wife Kim Kardashian’s SKIMS line.
West joins investor Robert F. Smith as the only two black businessmen with a net worth of at least $6 billion.
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