Kanye West Claims He Is Worth More than $3 Billion, but Forbes' Estimate Is Much Lower

Forbes estimates the rapper's net worth is $1.3 billion

Kanye West is now a billionaire, according to Forbes.

The rapper is claiming that his net worth is more than $3 billion — which would make him wealthier than other famous billionaires, such as Oprah Winfrey, whose net worth is estimated at $2.6 billion.

While West has achieved the 10-digit milestone in his wealth, Forbes is reporting that his net worth is much lower than the rapper claims.

Between West's many assets — including Yeezy, his music label and real estate — and his debt, Forbes estimates the 42-year-old rapper is worth $1.3 billion, according to a report Friday.

Despite the business magazine's analysis, West maintains that his net worth is higher, and reportedly texted Forbes, "It’s not a billion. It’s $3.3 billion since no one at Forbes knows how to count."

"We tend to look at self-appraisals somewhat skeptically," the Forbes report said. "Aside from the music, half of all this presumably belongs to his wife, though she’s no slouch and that math goes two ways."

<a href="https://people.com/tag/kanye-west/" data-inlink="true">Kanye West</a>, answers questions from Sr. pastor Joel Osteen, during the 11 am service at Lakewood Church, in Houston Lakewood Church’s 11am service, Houston, USA - 17 Nov 2019
Michael Wyke/AP/Shutterstock

"Given the illiquidity of these myriad assets and the lack of independent backup, we’re giving 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."

The Forbes report then estimated West's $1.3 billion net worth, before noting that it's $300 million more than Kylie Jenner's net worth.

Bloomberg reported Friday that Yeezy is West's largest asset "by far," and a document reviewed by the outlet showed that "Bank of America Corp. valued the sneaker side of the business alone at as much as $3 billion last year."

David Choi, West's accountant, provided Bloomberg with "an unaudited balance sheet that pegs the rapper’s net worth at $3.15 billion and lists more than $200 million of other assets."

yeezys

However, Forbes pointed out that "West’s aggressive $3 billion self-appraisal is clearly based on the idea that the business is infinitely portable. It’s not. Taking Yeezy away from Adidas seems almost prohibitively cumbersome, if not contractually impossible. A safer way to value it: as a royalty stream, like music publishing or film residuals."

The outlet estimated that West receives about a 11 percent royalty of Yeezy revenue from Adidas, which produces and distributes the trendy sneakers.

Bloomberg called the relationship between Adidas and Yeezy — which expires in 2026 — "more of a profit-sharing agreement than a typical licensing deal."

Related Articles