Kim Kardashian is reportedly a billionaire after signing a $200 million deal with Coty Inc. News

Kim Kardashian is reportedly a billionaire after signing a $200 million deal with Coty Inc.

Author's avatar Clout News Desk

Time icon June 30, 2020

Kim Kardashian, the media mogul behind brands KKW Beauty, KKW fragrance and SKIMS shape wear, sold a stake in KKW beauty to beauty giant Coty for $200 million. The deal, announced today, values the TV reality star’s 3 year old business at $1 billion. The deal makes Kardashian west worth about $900 million. The acquisition is set to close in early 2021. It will leave Kim Kardashian as the majority owner of KKW Beauty with an estimated 72% stake.

“Kim is a true modern-day global icon”

Coty chairman and CEO Peter Harf released an official statement about the acquisition. “We are thrilled to welcome one of the most influential beauty icons to the Coty family. @kimkardashian West!” The beauty company wrote on Instagram Monday. “Kim is a true modern-day global icon. Kim’s influence, combined with Coty’s leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands.”

download 4

According to Coty, they will be focusing on expanding product development. While Kim Kardashian will remain responsible for the creative efforts. Coty plans to expand the brand into more countries around the world. And possibly into other categories, like skin creams and shampoos. They hope KKW beauty can help boost sales and connect with younger shoppers who spend a lot of time on social media.

Coty has struggled in recent years. Wall Street insists that it routinely overpays for acquisitions. It has also failed to keep up with contemporary beauty trends. By striking deals with the Kardashian companies, Coty is hoping to refresh its image and appeal to younger consumers.

‘Second major Kardashian cashout’

Many have touted the deal as the second major Kardashian cashout in a year. Coty seems to be enamored with the Kardashians. Last year, it bought a 51% stake in Kylie Jenner’s makeup line. Both Kardashian companies are among brands that have received high valuations thanks to their social-media-friendly marketing.

“Partnering with an established organization like Coty will be instrumental in the advancement of my brands. Their global reach allows for faster expansion. People around the world are able to experience new launches first hand,” Kim Kardashian said in an official statement.
“This relationship will allow me to focus on the creative elements that I’m so passionate about. While we’ll be benefiting from the incredible resources of Coty, and launching my products around the world,” she continued.

Seed Beauty, which develops, manufactures and ships both KKW Beauty and Kylie Cosmetics, won a temporary injunction against the former. They were hoping to prevent sharing trade secrets with Coty. Coty also owns brands like Cover Girl, Sally Hansen and Rimmel. On June 19, Seed filed a lawsuit against KKW Beauty. It was seeking protection of its trade secrets ahead of an expected deal between Coty and KKW Beauty.

KKW and how it came about

Kim Kardashian, who stars on the long-running reality TV show “Keeping Up with the Kardashians,” founded KKW Beauty in 2017. She tapped into her massive social media following to sell lip gloss, body foundation and perfumes. Like her half-sister, Kim Kardashian first launched online, but later moved into Ulta stores in October 2019. This helped her generate estimated revenues of $100 million last year. KKW Beauty is one of several business ventures for Kim Kardashian. West also sells her own line of shape wear called Skims and promotes her mobile game, Kim Kardashian Hollywood.

When Kanye congratulated his wife

The person most excited about Kim’s alleged billionaire status was none other than her husband and fellow billionaire, Kanye West.

30208434 0 image a 13 1593487749197

The rapper, 43, penned a sweet note for his wife. “I am so proud of my beautiful wife Kim Kardashian West for officially becoming a billionaire,” West tweeted. “You’ve weathered the craziest storms and now God is shining on you and our family. So blessed this is still life. So I made you this still life. We love you so much.”

Author’s avatar

Clout News Desk

The Clout News Desk: Your trusted team dedicated to delivering the latest updates and insights from the world of entertainment. With a passion for uncovering captivating stories and a commitment to accuracy, we keep you informed and entertained. From breaking Hollywood news to trends in fashion and music, count on us to bring you the latest in entertainment. Join us as we explore the fascinating world of showbiz and beyond.