Don’t look now, but it looks like Kim Kardashian West is knocking on the billionaire’s club door and will likely be admitted to this exclusive club (to which her husband already belongs) in the not too distant future. One person who is still not a billionaire is Kardashian’s younger sister, Kylie Jenner. I mean, we hate beating a dead horse, but we’ve always said that Kylie doesn’t match. Here’s the thing though, Kim’s math adds up. The 39-year-old is within striking distance of the three-point club.
In case you haven’t heard the news, Kim sold a 20% stake in her cosmetics company, KKW, to Coty for $ 200 million. Yes, the same Coty who bought a majority stake in his sister Kylie Cosmetics’ cosmetics company. The deal values KKW at $ 1 billion. Remember, Kim is a real tycoon, she also has her own mobile game “Kim Kardashian: Hollywood” and her brand of shapewear Skims. Kim Kardashian West is now worth $ 900 million.
Kylie, as you may remember, was stripped of her billionaire status after it was revealed that she may have tampered with tax returns in order to request the valuation of her business to obtain the Coty deal that his cosmetics company had obtained. As we’ve always said, Kylie Cosmetic’s self-reported sales just don’t match. Yes, his lip kit was extremely popular when it first started. This fervor for his lip kit has died down considerably, and that before the pandemic made face masks the essential accessory and almost useless lipstick and lip gloss.
Coty is part of the Kardashian-Jenner family and their businesses. In addition to KKW and Kylie Cosmetics, Coty also owns MaxFactor and CoverGirl as well as a myriad of other brands. By launching into the Kardashian-Jenner business, Coty hopes to increase its slumped sales. Coty’s deal with Kim requires him to develop new products, including skincare, hair and nail care brands. KKW currently mainly sells highlighters.
In the press release announcing the deal, Coty called Kim Kardashian West a “modern-day modern icon …”
Coty’s interest in the Kardashian-Jenner brands consists in taking advantage of the presence of Kim and Kylie on social networks. The venerable business seeks to breathe life into the troubled business. It was revealed earlier this summer that a key Coty executive in the Kylie and Kim deals was friends with Kris Jenner and had unprecedented access to the family. Kris Jenner holds an 8% interest in KKW. The deal is expected to close in the third quarter of 2020. Coty’s shares rose 10% following the announcement of the KKW investment.