Forbes has officially declared Kanye West a Billionaire after the Hip Hop Superstar shared his financial records, where he revealed all his assets especially the Yeezy Sneaker empire.
Several attempts to get the true state of Kanye west’s assets from, Forbes has been taken into the world of Ye business empire where his source of wealth exists.
Ye had explained to them that he’s not a number guy, ten months ago.
“I’m not a numbers guy,” he explained ten months ago. “To ask me to somehow translate this to numbers is to ask your grandmother exactly what the recipe of the cake was,” he said.
However, he truly cares about billion dollars so much than any other thing.
The last time Forbes featured him on their cover where they unveiled the success story of the Yeezy brand, Kanye was pleased even presented them with some evidence of his riches.
But Forbes didn’t take his words as they refused to call him a billionaire as then.
Forbes insisted that there was insufficient documentation to call him a billionaire.
“Without sufficient documentation on his unusual stake, versus just his word and industry guesstimates, we didn’t call him a billionaire. And that grated on him. As the year wore on, he protested publicly.”
Trust Kanye West, he was very displeased with that development, he told an Industry Panel that no one at Forbes remembers
“I showed them an $890 million receipt and they still didn’t say ‘billionaire,’”
A few weeks later he texted to Forbes
A “disrespectful article,”
“purposely snubbing me.”
According to Forbes, after several months of the request, Ye yielded and granted them an audience.
He shared his financial records, revealing details on his wildly popular Yeezy sneakers empire—and his own net worth.
Forbes released their annual billionaire’s list earlier this month, and Ye was not including, this sparked a reaction from Kanye West.
“You know what you’re doing,” he texted. “You’re toying with me and I’m not finna lye [sic] down and take it anymore in Jesus name.”Kanye West…
He went on and texted to Forbes,
“purposely a part of a group of media” that was trying to suppress his self-made narrative because of his race”Kanye West
Probably because is sister-in-law Kylie Jenner made the list but him, must be very provocative.
Kanye West didn’t find it funny as he sent his team to provide an authentic numeric look of Kanye, Inc.
“Three things became clear from this exercise. First, it reinforces why we put him on the cover in the first place — West, in just a few years, has created a brand that’s challenging Nike’s Air Jordan for sneaker world supremacy. It’s one of the great retail stories of the century.
Second, it reinforced that West, who claims both in words and in this paperwork that he’s worth more than $3 billion, is as overly boastful as his political idol, President Donald Trump. Not a numbers guy? We agree.
Finally, and perhaps most critically to West, it does confirm, based on our estimates, that his stake in Yeezy indeed makes him a billionaire. A bit over $1 billion, actually.”
Forbes acknowledged that Yeezy is a complicated asset, but wholely owned by Kanye West.
However, it’s functionally tied to at least 5 years plus, from the Adidas who are the manufacturer, market chain and shoe distribution.
Forbes projected that the shoes would be finished in 2019, with revenue worths of $1.5 billion, with a final revenue that is close to $1.3billion.
In further details, according to Forbes,
They claimed that their sources told them that Ye’s royalty of Yeezy revenue from Adidas is 15%, which is close to 11% after the expenses, totalling about $140million was received by Kanye from last year’s sales.
In disputing the $3 billion worth claim by Kanye, Forbes insisted that the amount is exaggerated because the business is not infinitely portable, as he makes it seems.
” Taking Yeezy away from Adidas seems almost prohibitively cumbersome, if not contractually impossible,” Zack O’Malley Greenburg of Forbes wrote.
“A safer way to value it: as a royalty stream, like music publishing or film residuals. Multiples, based on services like Royalty Exchange or in large private transactions, can be as low as three, for something faddish like Cardi B’s “Bodak Yellow” to 17 for an evergreen asset like the Eddie Murphy film Trading Places. “
“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.”
Forbes also considered that Kanye must have spent so much more as well, given his incredible successful recording career, Burgeoning Yeezy dividends.
Kanye Team stated that Kanye West has just $17 million in cash and $35 million in stocks.
His biggest assets, according to his internal team, are $81 million in “buildings and improvements” and $21 million in land.
.” A pair of $14 million Wyoming ranches—nearly 10,000 acres between the two of them—has been taking up more cash.
In order to determine the true state of his wealth, there’s $3,845,162 for “vehicles,” $297,050 for “livestocks.”
There’s $53 million in listed debt. And half of all this presumably belongs to his wife, though she’s no slouch and that math goes two ways.
His music record Worth.
Then there’s the matter of his music. Documents we reviewed show West’s G.O.O.D. label—and his own recorded music and publishing rights—to be worth at least $90 million.
Forbes explained that they tend to be sceptical about self-appraisals as. As they weren’t moved by Kanye’s Trump-like claims.
They posited that his wife also own some of these assests too.
” Aside from the music, half of all this presumably belongs to his wife, though she’s no slouch and that math goes two ways. Given the illiquidity of these myriad assets and the lack of independent backup, we’re give all of this a 50% haircut: That’s about $125 million in assets, outside of his Yeezy crown jewel. Then, there’s debt: between mortgages, advances and other liabilities, we saw about $100 million that West is on the hook for.”
Forbes officially placed current Net Worth of Kanye West at $1.3 billion, which is $300million more than Kylie Jenner.
Kanye West Response:
He tested Forbes last night,
“It’s not a billion,” “It’s $3.3 billion since no one at Forbes knows how to count.”
However, according to Forbes, they have an informal rule “Trump Rule”, which is, take whatever Kanye insisted he worths and divide it by 3 and start honing from there.
Notwithstanding, Kanye West is now a Billionaire as confirmed by Forbes.
He is now hip-hop’s second Billionaire after Jay-Z.