Kanye West has officially achieved billionaire status, making him the second rapper to do so after Jay-Z according to Forbes on Friday (April 24).
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.