Ever since reality star turned businesswoman Kylie Jenner was named by Forbes as the world’s youngest self-made billionaire, critics have expressed their doubts about her actual net worth. It’s time that matter is settled. Is the now 22-year-old really a billionaire?
If she wasn’t before, then she is definitely one now after the multinational beauty company Coty bought a majority stake worth $600 million in Jenner’s Kylie Cosmetics company. The deal means that the makeup company’s valuation at the time of the deal was around $1.2 billion. The move is said to be part of Coty’s attempts at acquiring trendy brands to appeal more to younger consumers. The deal involved Jenner retaining a position in leading communications and creative efforts for Kylie Cosmetics while the corporation takes lead in handling its portfolio. Since the penning of the agreement, Coty’s shares have reportedly risen by as much as 2.6%.
Meanwhile, Coty isn’t the only beauty industry giant that’s gone on a brand acquisition spree all in the hope of garnering a younger shopper demographic. Estee Lauder, for example, spent a whopping $1.1 billion to buy its remaining two-thirds stake in Have & Be Co, a Korean skincare company.
Coty’s decision to buy into Kylie Cosmetics is part of it attempts at turning business around. It's also in the process of seeking a sale of its brand holdings in the professional hair and nail products niche like OPI, Clairol, and Wella. In a statement, the company described the deal with Jenner as a ‘key milestone’ in Coty’s path to become a more agile company.
On the other hand, the deal also effectively solidified Jenner’s spot amongst the youngest billionaires in the world. The Bloomberg Billionaires Index estimates that the business mogul is worth $1.1 billion. No doubt she’s come a long way since the beginnings of her makeup brand in 2015. Years after, the makeup company has expanded into producing and selling skincare products as well.