American cosmetics giant Coty takes a 20 percent stake in Kim Kardashian’s makeup brand KKW Beauty and pays 200 million dollars (178 million euros) for this. It makes the reality star a billionaire in one fell swoop.
The acquisition of twenty percent of the shares values the cosmetic brand KKW Beauty (the initials of its full name, Kim Kardashian West), which has only existed for three years, at one billion dollars. Coty has, according to the business newspaper Financial Times moreover, an option to acquire the entire brand later.
It is not the first time that Coty has teamed up with the Kardashians. Late last year, it paid $ 600 million for 51 percent of the shares in Kylie Cosmetics, the cosmetics brand owned by Kylie Jenner, Kim’s younger half-sister who became world-famous through the reality show along with the rest of the family Keeping up with the Kardashians. Jenner’s company was valued at $ 1.2 billion at the time, slightly more than Kim’s.
With the takeover, Coty aims to modernize its portfolio of its own cosmetic brands. With the participation in KKW Beauty, it mainly wants to get a foot in the door of the many millions of followers of the Kardashians on social media. Jenner has 182 million according to Instagram, Kardashian 177 million.
Saved bank account
It promises to be an interesting period for the bank account of Kim Kardashian and her husband Kanye West, since the rapper has just announced a great collaboration between his fashion label Yeezy and the American clothing chain Gap.
In any case, Kim has become a billionaire in one fell swoop and was congratulated for this via Twitter by her husband. “I am so proud of my beautiful wife and the fact that she has officially become a billionaire. You have weathered the craziest storms and now the sun is shining on you and our family. We love you.”