Adidas cuts ties with Kanye West

Adidas is the latest company to terminate their partnership with Kanye West.

Transcript

00:00Adidas has ended its partnership with Kanye West due to his anti-semitic remarks,

00:04but we need to talk about the events that led to this decision and how it will

00:07financially impact the sports brand. After undergoing a review last month,

00:11Adidas announced it's ending its almost decade-long collaboration with the rapper,

00:15effective immediately. The company first put its relationship with Ye under review on October 6,

00:21after he said on Instagram that he wanted to get out of his contract.

00:24Since then, he went on to make multiple problematic and anti-semitic comments.

00:28Adidas joins a growing list of businesses that have cut ties with Ye. Within the past week,

00:33Balenciaga, Vogue, Creative Artists Agency, Gap, and even his divorce lawyer have ended

00:38their working relationships. Adidas said it will immediately stop producing Yeezy-branded products,

00:43cancel all payments to his companies, and maintain all design rights so that the brand

00:47cannot be reproduced. With high holiday profits typically generated during their fourth quarter,

00:52Adidas estimates terminating the partnership will have a short-term negative cost

00:56of nearly $250 million.