We are witnessing the erosion of Ye's wealth in real time. The bankers and journalists that validated Ye's billionaire status did so under the premise of hundreds of millions of dollars in revenue to his Yeezy brand from the wildly successful partnership with Adidas. Long story short, bankers basically valued his business the way all businesses are valued - at the present value of future cash flows. When you are earning $150M+ in revenue with very little costs (Adidas bears costs of manufacturing and distribution), and that's projected to grow at a reasonable clip, you can arrive at a valuation in the billions.

Without the partnership with Adidas, it's unlikely Ye will find a partner that can manufacture at scale and distribute Yeezy products without Yeezy bearing some significant costs themselves. That, coupled with significant reputation all damage and brand taint, Ye's billion dollar empire will crumble. I'm sure he has tens of millions (maybe in the hundreds of millions) in cash/other assets from the success over the last few years, but he is unlikely to maintain a billion dollar enterprise in Yeezy. It's sad, I'm a huge fan and have been since I first heard Jesus Walks in the 7th grade, but he's a grown man and is doing this to himself. (For context, I have a graduate degree in finance and work at a top will street bank, so take this for whatever it's worth).

on the bright side, more music otw

He said in that Piers Morgan interview he has 120 million in his account. Crazy thing is, I think over the last like 3-4 weeks, it went from him saying he has 150 million, then 140 million and now 120 million. Like, he’s spent 30 million in 4 weeks

Great

the man needs humbling

no question

wow

Once he goes independent with Yeezy he could have way more than that if it works out.

He's always limited when in these partnerships.

Not saying that will happen but that's his reasoning.

He needs to pay for manufacturing and distribution, on top of other indirect costs associated with marketing and selling shoes. His current deal has Adidas bearing all of those costs and he just gets a juicy 15% cut of the revenue. Apparel is a low margin, capital intensive business.

There's also the matter of the damage to his brand. There will surely be fewer people looking to buy Yeezy.

Ya you could tell he was banking on those 4 SoFi shows he was supposed to do. Prolly would’ve been a nice check

Oh well bozo

But he has Parler which I’m sure will explode in value any moment now

I remember his first drink champs last year he alluded to this happening

It feels just like the Donda show when he lit himself on fire for art but it feel real now lol

Bro gonna crash hard asf

Its sad man

That last sentence

This isnt how it works lol

Thats probably not a cash account hes referring to, and the market continuing to tank over the last few weeks would explain that

Hopefully Kim got a prenup

All i'm hearing from all this is that this boy's next album bout to be fyyyeeee 🔥😭

Lmfao. You guys know absolutely nothing about business and continue to talk.

That’s cash. He said he had 130 million in cash for Chase bank. He’s valued at 4-9 billion dollars. The Yeezy Brand alone is valued at 2 billion dollars and he is the sole owner. The valuation and stock of Yeezy shoes by Adidas continues to grow daily despite all the antics. You guys are acting like Ye is going broke before our very eyes when in reality he has a lot more than just about any musician in history thanks to his brand

Ya it was a really odd thing to say and always stuck out to me.

If Adidas pulls the plug it's a wrap - for the reasons I stated above