BY Abu Mubarik, 2:00pm October 25, 2022,

Why big brands are dumping Kanye west 

Kanye West -- Photo Credit: Pieter-Jannick Dijkstra

Some multinational corporations have ended their partnership with billionaire rapper Kanye West over offensive behavior. Early this month, the rapper, who goes by the name Ye, came under fire for a series of anti-semitic remarks that saw him get suspended on the social media platform Twitter.

A few days ago, Balenciaga announced that it was ending its relationship with Ye in the wake of his anti-semitic remarks and “White Lives Matter” shirt.

“Balenciaga has no longer any relationship nor any plans for future projects related to this artist,” Kering, the parent company for the French fashion house, noted in a statement to Women’s Wear Daily.

In response, Ye told TMZ that he was not perturbed about the move because “I ain’t losing no money, they didn’t pay me anything.” He added: “The day when I was taken off the Balenciaga site, that was one of the most freeing days.”

The next company to freeze ties with Ye is German sneaker giant Adidas. The company first announced that it was reviewing its partnership with Ye and subsequently announced that it would cut ties with him. Adidas’ partnership with Ye’s Yeezy has been estimated to be worth billions.

“Adidas does not tolerate anti-semitism and any other sort of hate speech,” the company said in a statement Tuesday. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”

“Adidas will stop the Adidas Yeezy business with immediate effect,” the statement added. 

Ye’s partnership with Adidas began in 2013 after he quit Nike. The deal involves both shoes and clothing, and it is the most lucrative of his business empire. In the last few years, he has focused more on fashion as his music career tumbles.

In 2021, Ye became a certified billion following the impressive success of his businesses. The 22 Grammy winner has a booming sneaker and apparel business, making him one of the most successful celebrities in the world.

The rapper turned entrepreneur is not just a billionaire but a multibillionaire following a recent estimate of his business deals. Last year, it was reported that he is officially worth $6.6 billion, according to Bloomberg, making him the richest Black man in U.S. history.

This information about the worth of West came following valuations prepared by investment bank UBS Group AG. Yeezy, West’s sneaker/apparel partnership with Adidas is worth between $3.2 billion and $4.7 billion, according to documents reviewed by Bloomberg that year.

The African-American rapper owns a 100% stake in Yeezy and also has a partnership with The Gap which is valued at $1 billion. West also has additional income coming from his $110 million music catalogue, $122 million in cash and stocks and business investments with his estranged wife Kim Kardashian’s SKIMS underwear brand.

The documents also showed that sales for Yeezy’s Adidas sneakers survived the effect of the pandemic by posting a growth of 31% and making nearly $1.7 billion in revenue while netting $191 million in royalties.

Last Edited by:Mildred Europa Taylor Updated: October 25, 2022

Conversations

Must Read

Connect with us

Join our Mailing List to Receive Updates