Kanye West officially joins billionaire ranks

Kanye West officially joins billionaire ranks

Hip hop mogul and founder of the Yeezy footwear brand, Kanye West has officially hit billionaire status; according to a newly published Forbes report.

Forbes disclosed that Kanye West recently provided documents believed to be an “authentic numeric look into Kanye, Inc.” After analyzing his assets, Forbes determined Kanye was, in fact, a billionaire; something he claimed during an appearance at the 2019 Fast Company Innovation Festival.

“When I did Forbes, I showed them a $890 million receipt and they still didn’t say ‘billionaire,” Kanye had told the audience.

However, it now appears Kanye West is worth just a little over $1 billion, according to Forbes’ estimates; a large chunk of which comes from his highly successful Yeezy brand and its partnership with Adidas.

‘‘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,’’ Forbes disclosed.

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Kanye West

‘‘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.’’

Meanwhile, Kanye West’s team also sent statements that list $17 million in cash, $35 million in stocks; as well as about $102 million in “buildings and improvements” and land. His music, which includes publishing rights and his G.O.O.D. Music imprint, is said to be worth around $90 million.

Though Kanye insists his assets are valued at around $3 billion, Forbes gave these figures “a 50% haircut”. This was because of the assets’ liquidity and a lack of independent confirmation. Also, the Forbes team deducted $100 million for debts, which included mortgages and advances; putting Kanye’s estimated net worth at $1.3 billion—about $300 million more than his 22-year-old sister-in-law, Kylie Jenner.

But Kanye reportedly disagreed with Forbes.

“It’s not a billion,” he allegedly texted the reporters Thursday night. “It’s $3.3 billion since no one at Forbes knows how to count.”

Equally important, Kanye West becomes the second hip-hop star to hit the billionaire status after rapper Jay Z.

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