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This week I am preoccupied with the horrific fall of Kanye West, who was once, for many, a cultural icon. Now, he is emblematic of an era that refuses to separate art from artists and culture from corporations.
West’s very public bouts of hate speech have cost him billionaire status, as you’ll read below, because German sports brand Adidas chose to cut ties. It doesn’t stop there — he was dropped from his talent agency, temporarily lost the ability to post on both Instagram and Twitter, was escorted out of Skechers’ corporate office after an unsolicited visit, and has been edited out of interviews and TV segments .
Some perceive Ye’s very public controversy as a change in the way companies do business with stars. Although celebrity endorsements and partnerships were once somewhat of a no-brainer for consumer brands, now, added layers of foresight are likely to apply when entering into a deal with a public figure. Fame often comes with fame these days, and a celebrity endorsement no longer guarantees a payday for brands; many predict that companies will have a much easier time entering into partnerships with potentially troublesome—albeit sensational—celebrities.
Clearly, there are some valuable business lessons embedded in this controversy. Today, success is often characterized by consumers as profitability, quality AND responsibility. While there are some things that even the most careful forethought cannot predict, if you want to do what’s best for your brand, think deeply and critically about your collaborations.
Billionaire No More: Kanye West’s Anti-Semitism Destroys His Net Worth As Adidas Cuts Ties
Kanye West.
Jamel Toppin for Forbes
Just days ago, rapper Kanye West’s fashion entrepreneur challenged Adidas to drop him after a weeks-long barrage of anti-Semitic comments made on social media and in national media appearances.
Ye, who had worked with Adidas since 2013 on its Yeezy line of super-expensive and super-popular sneakers, thought he was untouchable. After all, Adidas gets about 4% to 8% of its sales from Yeezy products, according to investment bank Cowen. For Ye, it was an even bigger deal, accounting for $1.5 billion of his net worth.
But Ye’s words put the German athletic apparel company, with its Nazi ties dating back to its founders, in the hot seat. What followed was even more escalating pressure on Adidas to cut ties with Ye, after his string of anti-Semitic comments drew condemnation from the highest levels of Hollywood. For weeks, Adidas remained silent.
This Tuesday Adidas finally broke the silence and ended the relationship. This move will cost him a lot, but you even more, instantly knocking him out of the billionaire ranks.
On our radars:
- For the first time in five years, it will be pop star, fashion icon and Under 30 alum Rihanna releasing music today, October 28. Since her last album, she’s launched her Savage X Fenty direct-to-consumer underwear brand, launched Fenty cosmetics and skincare brand, and become a mom. All hail! (Forbes)
- The meta has suffered its second consecutive drop in revenue, shedding nearly half a trillion dollars from its market value this year. The losses stemmed from a range of issues, including a broad sell-off in tech stocks that have shares of parent company Facebook trading in Lowest price since 2017. (Wall Street Journal)
- A new $100 million Boston-based venture fund, Propeller, is looking narwhals – not unicorns. It is teaming up with one of the world’s leading marine research institutes to invest exclusively in ocean technologies that seek to address the climate crisis. (Bloomberg)
- Shutterstock – everyone’s favorite stock image repository – says it will add AI generated images, powered by OpenAI’s DALL-E 2 generative search engine. (Forbes)
Inside Scoop: New injection pushes private aviation company closer to electrification
Flapper, a private aviation company based in Brazil, announced this week that it has raised $6 million in a Series A expansion led by venture firm DXA. The company was founded by Paul Malicki, who appeared in ForbesList of Europe under 30 in 2017. According to Malicki, the injection will be allocated to investments in technology and flight operations, including acquisitions.
Flapper users in several Latin American countries, including Argentina, Brazil and Chile, as well as Florida and Portugal, can get quotes on more than 1,000 security-screened aircraft available for charter in their marketplace or buy seats individual on scheduled flights. Its shared service is available on routes in Brazil, which include São Paulo and Rio de Janeiro.
As of this year, it counted more than 350,000 users of its mobile app. Malicki described the private aviation industry as “sizzling” right now – the company estimates that the air charter industry in Latin America hovers around $2 billion, with the global market close to $10 billion.
Additionally, Flapper claims that electrification could triple the size of the overall aviation market due to more flexible and virtually noiseless landing options. To get their hands on greener operations, Flapper has signed letters of intent with a number of manufacturers including Washington-based MagniX, which makes electric fixed-wing aircraft, as well as several electric vertical lift development programs such as Electra in Virginia. .
