How did an influencer
make $600 million?
A few days ago, Kylie Jenner shocked the world of business, when she announced that she had sold a majority stake in her massive, international makeup brand, Kylie Cosmetics. She had sold off 51% of her company to Coty (the company that owns CoverGirl, OPI, Rimmel, and Sally Hansen). The purchasing of Kylie Cosmetics certainly cost Coty an enormous amount of money. The sale went down for a whopping $600 million (4,7 mia. DKK).
After the massive sale, Kylie told the press in a statement:
“I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world. I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media. This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”
But since the acquisition, things have started to change for the young entrepreneur. Kylie Jenner is no longer in total control of the brand carrying her name. The first effect of this loss in power and control is the fact that the brand has been renamed, from Kylie Cosmetics to Kylie Beauty. Time will tell if other, more fundamental, changes regarding Kylie Beauty will come in the future.
The corporate beauty giant, Coty, recently bought a 51% share in Kylie Cosmetics (now Kylie Beauty) for a staggering $600 million.
So, what is Kylie’s net worth?
After having sold the 51% of her company, Kylie Jenner’s beauty empire is now worth somewhere around $1.2 billion (8,2 mia. DKK). Though Kylie did sell more than half of her makeup line, her private net worth, as well as the net worth of Kylie Beauty, has only increased.
Forbes has reported that Jenner has made $170 million in the past year, making her the second-highest-paid celebrity of 2019, following Taylor Swift. However, since she just added $600 million (4,7 mia. DKK) to her net worth, most people might have assumed that Kylie would be taking a step away from the Kylie Beauty brand with this sale to Coty, but it’s actually the exact opposite. She will still be the face of the brand and lead the creative efforts of product development and communications initiatives.
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The brands are angry!
A few months ago, we asked the question, “Is Kylie Jenner really a self-made billionaire”? People immediately rolled their eyes at the “self-made” bit. After all, Jenner only became well-known through her family’s reality show Keeping Up with the Kardashians. Even Kylie herself has said that ”self-made” might not be the correct term.
According to People Magazine, Kylie told in an Interview while visiting Germany:
“I am a special case because before I started Kylie Cosmetics, I had a huge platform and lots of fans. I did not get money from my parents past the age of 15. I used 100 percent of my own money to start the company, not a dime in my bank account is inherited… and I am very proud of that.”
We’ll see what’s next for the new Kylie Beauty empire.
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