Rapper Kanye West has reached billionaire status, according to a new report by Forbes. 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 told the audience.

Well, according to the publication’s estimates, it appears Ye is worth just a little over $1 billion; a large chunk of which comes from his highly successful Yeezy brand and its partnership with Adidas. 

According to Forbes the super star rapper 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.

yesterday, a breakthrough: West directed his team to provide what we feel is an authentic numeric look into Kanye, Inc. His current net worth estimate for Kanye West a staggering $1.3 billion.

The recently released Yeezy financials show that the brand actually generated $1.5 billion in gross revenue and that trickled down to $154 million net royalty payments to Mr. Kanye West. His royalty rate is hard to pin down because he earns a much higher cut of sales generated off Yeezy.com as opposed to sales generated by Adidas.

Over the next six years (including 2020) Kanye is projected to earn more than $2 billion in royalty payments from Adidas. At that point, if all goes go plan, the Yeezy brand will be worth $2-3 billion.

Source: Forbes.com