Kanye West loses billionaire status
LOS ANGELES - The termination of controversial rapper Ye’s partnership with Adidas has knocked the musician off the Forbes list of the world’s billionaires, according to Forbes.
Adidas on Tuesday announced it would terminate its partnership with the rapper and fashion designer after he made anti-Semitic remarks.
Adidas put the tie-up, which has produced several hot-selling Yeezy branded sneakers, under review this month.
“Adidas does not tolerate anti-Semitism and any other sort of hate speech,” the German company said.
Forbes magazine said the end of the deal meant Ye’s net worth shrank to US$400 million (R7.3 billion). The magazine had valued his share of the Adidas partnership at US$1.5 billion (R27 billion). The remainder of Ye’s wealth comes from real estate, cash, his music catalogue and a five per cent stake in ex-wife Kim Kardashian’s shapewear firm, Skims, Forbes said.
Representatives for Ye did not immediately respond to a request for comment.
Partnership
For Adidas, ending the partnership and the production of Yeezy branded products, as well as stopping all payments to Ye and his companies will have a ‘short-term negative impact’ of up to €250 million (R4.5 billion) on net income this year, the company said.
Ye has courted controversy in recent months by publicly ending major corporate tie-ups and making outbursts on social media against other celebrities. His Twitter and Instagram accounts were restricted, with the social media platforms removing some of his online posts that users condemned as anti-Semitic.
In now-deleted Instagram posts earlier this year, the multiple Grammy Award-winning artist accused Adidas and US apparel retailer Gap Inc of failing to build contractually promised permanent stores for products from his Yeezy fashion line.
He also accused Adidas of stealing his designs for its own products.
On Tuesday, Gap, which had ended its partnership with Ye in September, said it was taking immediate steps to remove Yeezy Gap products from its stores and it had shut down YeezyGap. com.
“Anti-Semitism, racism and hate in any form are inexcusable and not tolerated in accordance with our values,” Gap said. European fashion house Balenciaga has also cut ties with Ye, according to media reports.