Adidas Severs Ties With Kanye West Over Rapper's Antisemitic Remarks, Sees $247M Impact From Development In 2022

Adidas ADDDF ADDYY and Kanye West, who has rechristened himself as Ye, are parting ways, joining a host of brands snapping ties with the rapper.

What Happened: Adidas said on Tuesday that it has decided to terminate its partnership with Ye, with immediate effect. The apparel and sportswear retailer said it will end the production of Yeezy-branded products and stop all payments to Ye and his companies.

The company attributed the decision to Ye’s antisemitic speech that recently landed the rapper in controversy.

See Also: Kanye West Says George Floyd Died From Fentanyl: Family Will Sue, Outrage Mounts Over 'Repugnant' Comments

“Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness,” Adidas said in a statement.

Ye was locked out of his Twitter and Instagram accounts after a series of antisemitic posts. He then began airing his view through the right-wing social media platform Parler, which he has agreed to acquire.

Adidas said in early October it was reviewing his relationship with Ye after he appeared at a fashion show in Paris, wearing a “White Lives Matter” T-shirt.

What’s Next: Adidas said the development will have a short-term negative impact of up to 250 million euros ($247 million) on its net income in 2022, given the high seasonality of the fourth quarter.

The company also said that it is now the sole owner of all design rights to existing products as well as previous and new colorways under the partnership. More information on this will be disclosed when the company reports its third-quarter results on Nov. 9, it added.

Adidas shares pulled back about 4% on the Frankfurt stock exchange.

Read Next: How to Buy Adidas Stock