Kanye West No Longer a Billionaire After Adidas Cut Ties With Hip Hop Mogul For Antisemitic Remarks
With Adidas and a growing list of companies also cutting ties with the rapper, it is now being reported that Kanye West is no longer listed on the Forbes billionaires list.
Here’s the latest news on what’s happening with Kanye West, aka Yeezy, and his partnership with Adidas (OTCQX: ADDYY). It’s no secret that Kanye West is one of the wealthiest celebrities on the planet. Has Kanye finally let the wealth and fame get to his head, or is something deeper going on? How are Kanye’s remarks going to impact the Adidas brand long term, and what exactly did he say for the company to cut ties with him? We’ll answer these questions by the end of today’s article.
Let’s take a deeper dive into the Adidas brand, as we know it’s risky for brands to endorse celebrities, especially when they are unpredictable. In any case, this isn’t the first time that a brand has had issues with celebrity endorsements. We’ve seen time and time again endorsements go awry, and it’s not always worth it for brands and mega-corporations. No question cutting ties with Yeezy short-term will hurt Adidas after the rapper made a series of Anti-Semitic social posts in recent weeks. It’s estimated that Yeezy drives “4 to 8 percent of Adidas’ annual revenue, which topped $25 billion in total last year in 2021”. However, this may be the right move for the company in the long term.
What exactly did Kanye West say for the world to react in an uproar?
In a recent video, Kanye West stated, “I can say anti-Semitic things, and Adidas can’t drop me. Now what?”
Well, Adidas did drop Kanye, and that’s not all. In addition, he tweeted on October 8th that he’s “going death con three on JEWISH PEOPLE.” This, of course, incited huge reactions from the entire world, ending with his original tweet being banned and a wave of brands, celebrities, and his lawyer dropping him. The list goes on, with Balenciaga & Gap dropping him and even his former wife, Kim Kardashian and her family speaking out against him.
According to Barrons, on Tuesday, Adidas reportedly stated it was moving to immediately end its partnership with West, effectively ending its production of Yeezy-branded products. Gap (NYSE: GPS) has announced plans to cut ties with Kayne entirely.
As the list of companies cutting ties with West continues to grow, West is no longer listed on the Forbes billionaires list as of Tuesday. It’s being reported that the Adidas deal was worth $1.5 billion to West; without it, his net worth drops to $400 million.
Kanye West has spoken publicly about his mental health issues and bipolar disorder, which may be the root cause of his actions. However, for investors in Adidas, there may be some pain ahead. Long-term, only time will tell if this is the right decision for Adidas.
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