Following in the footsteps of younger sister Kylie Jenner, Kim Kardashian West has just sold a 20% stake in her cosmetics line to Coty. The $200 million dollar deal values the KKW Beauty brand right at a billion dollars, which is just shy of Kylie’s $1.2 billion.
Like Kylie, who sold a 51% stake to Coty, Kardashian West and her team will continue to lead the creative side while leaning on the conglomerate for global expansion and commercial opportunities.
“Kim is a true modern day global icon. She is a visionary, an entrepreneur, a mother, a philanthropist, and through social media has an unparalleled ability to connect with people around the world,” Peter Harf, Coty Chairman and Chief Executive Officer, wrote in a statement. “This influence, combined with Coty’s leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands.”
Kardashian West adds that the deal will allow KKW Beauty to reach more countries, and give her time to focus on the creative end of the business. “Partnering with an established organization like Coty will be instrumental in the advancement of my brands as their global reach allows for faster expansion so people around the world are able to experience new launches first hand,” Kardashian West said in a statement. “This relationship will allow me to focus on the creative elements that I’m so passionate about while benefiting from the incredible resources of Coty, and launching my products around the world.”
Following the announcement, rapper Kanye West congratulated his wife on her new alleged billionaire status with a tribute on Twitter. "I am so proud of my beautiful wife Kim Kardashian West for officially becoming a billionaire," West wrote in a tweet that has received some backlash for what many believed to be in poor taste during a pandemic. "You’ve weathered the craziest storms and now God is shining on you and our family."
The Coty deal, which is expected to close in the third quarter of the 2021 fiscal year, is especially interesting considering the recent Forbes report accusing Jenner of inflating her net worth. (Not long after West's tweet, Forbes published a story maintaining that, according to the financial authority's estimate, Kardashian West's net worth actually falls just short of a billion at $900 million.) The story drew criticism of both Jenner and Forbes, the latter of which risked losing credibility from audiences when it comes to reporting on wealth. With Coty continuing to invest in the family at similar rates, it seems the parent company doesn’t feel as bamboozled as the report led many to believe.
There is one party taking issue with this new partnership, however: Seed Beauty. The manufacturer, which develops KKW Beauty products in California, filed a civil lawsuit to prevent Kardashian West from sharing trade secrets, including Seed’s unique business model that has contributed to the success of brands like KKW Beauty, Kylie Cosmetics, and Tati Beauty. Now that the Coty partnership is fully underway, it’s likely that we’ll be hearing a lot more in the coming months as this deal comes to a close — but knowing Kardashian West's newfound passion for the law, we can't imagine her backing down in court.
This story has been updated to include Kanye West's tweet.