Goodbye, Gap. Adiós, Adidas. Kanye's Billionaire Status Goes Kaput

Zinger Key Points
  • West’s deal with Adidas accounted for $1.5B of his net worth. But his net worth is now closer to $400M.
  • West also recently made plans to acquire Parler, a conservative social media platform.

Kanye West became a billionaire in 2020, according to Forbes, due to his music and multiple brand deals with companies like Adidas AG ADDYY and Gap Inc GPS.

But, both of those deals are now kaput.

Following West's antisemitic comments on a number of different platforms, brands are now running away from the "Jesus Walks" singer.

Read Also: Adidas Severs Ties With Kanye West Over Rapper's Antisemitic Remarks, Sees $247M Impact From Development In 2022

JPMorgan Chase & Co. JPM ended a banking relationship with West earlier this month. But it was a split from Adidas that put a big dent in his account.

West teamed up with the apparel company to create Yeezys, one of the most lucrative tennis shoes of all time. According to Morningstar analyst David Swartz, Yeezys alone accounted for $2 billion in revenue for Adidas last year, or about 10% of its revenue.

More conservative estimates say that Yeezys make up about $1.5 billion in revenue, or 7%, for Adidas. Either way, it’s a big hit for the company, which is in competition with Nike Inc NKE. But, it could be a way bigger hit for Kanye.

Billionaire No More

According to Forbes, West’s deal with Adidas accounted for $1.5 billion of his net worth. After losing the Gap, Adidas and other deals, West’s net worth is now closer to $400 million. His remaining net worth comes from real estate holdings, his music catalog, cash and a stake in Skims, his ex-wife Kim Kardashian’s clothing company.

West also recently made plans to acquire Parler, a conservative social media platform.

Gap and West announced last month that they were terminating their contract with each other. But on Tuesday, the clothing company took further steps to distance itself from the "Gold Digger" singer. The company shut down and will be pulling West’s merchandise from its stores.

The "Ye/Gap" merchandise had been extremely successful, selling out online almost immediately after dropping.

See Also: George Floyd's Family Sues Kanye West In $250M Defamation Suit

Market News and Data brought to you by Benzinga APIs
Posted In: EntertainmentEntrepreneurshipGeneralKanye West
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!