Forbes reported that Kanye West ’Ye’s Yeezy brand, which he owns in its’ entirety and falls under the Adidas umbrella, that helped push him over the being a billionaire.
Forbes dissected the Chicago rapper’s success with Yeezy while also sharing how they tabulated Kanye’s net worth. Forbes previously reported that West’s brand would close out 2019 with a revenue of $1.5 billion. They later calculated that Yeezy’s earnings were closer to $1.3 billion.
According to Forbes;
Our sources told us last year that West’s agreement calls for him to receive a royalty around 15% of Yeezy revenue from Adidas. Upon closer inspection, it appears some expenses are carved out of that slice, bringing his actual cut closer to 11%. At that rate, he would have received royalties of over $140 million from Yeezy sales last year …
Conservatively, as we typically are with such figures, a 10x multiple, applied to West’s Yeezy cut of $140 million makes his stake worth about $1.4 billion. But that’s a private, highly illiquid $1.4 billion — our rule-of-thumb for private assets like that is to lop off at least 10%. That’s $1.26 billion.
No comments:
Post a Comment