Adidas AG has terminated its partnership with American rapper Kanye West, also called Ye, with immediate effect after he made antisemitic comments on social media.
The company said his recent actions were "unacceptable, hateful and dangerous", while they also violated Adidas’ values of diversity, inclusion, mutual respect and fairness.
Adidas will also stop the production of Yeezy-branded products and end all payments to Ye and his companies immediately.
This action is expected to have a “short-term negative impact” of up to €250mln this year given the high seasonality of fourth quarter trading.
Adidas was the sole owner of all Yeezy design rights, as well as old and new colourways under the partnership.
Twitter Inc (NYSE:TWTR), which is expected to be taken over by Elon Musk this week, also removed Ye’s posts and locked his account. Instagram followed suit.
Adidas shares were changing hands 5.2% lower at €98.47 on the German Stock Exchange.
On 14 October, US banking giant JP Morgan Chase also cut ties with Kim Kardashian's ex-husband.