KKW beauty is climbing the ladder to become one of the dominating cosmetics companies in the world. KKW beauty will be selling 20% stake to beauty giant Coty. The deal will value KKW beauty at $1 billion doubling Kim Kardashian’s net worth at $900 million. Forbes has estimated the new net worth of the reality starlet.
This will be the second largest deal in the famous family after Kylie cosmetics. Earlier this year Coty announced that it has acquired 51% stake of the infamous beauty brand by Kylie. This major payout valued the Kylie cosmetics at $1.2 billion and also putting Kylie’s net worth at $900 million.
Unlike her half-sister Kim Kardashian will remain the major shareholder of the KKW beauty with 72% stake. It is also believed that Kris Jenner has an estimated stake of 8% in the company. However Kim and Kris have not responded to Forbes’ request to comment about their stakes.
KKW beauty mainly focuses on highlighters and contouring creams. Kim Kardashian will still carry on her responsibility on the company’s creative efforts. Thus Coty will focus on expansion and development of other products other than creams.
Coty’s other household brands
The giant beauty Coty is a parent company to some of the biggest beauty brands in the USA. KKW beauty will join brands like CoverGirl, Rimmel and Sally Hansen under Coty.
“Kim is a true modern-day global icon… This influence, combined with Coty’s leadership and deep expertise in prestige beauty will allow us to achieve the full potential of her brands.” Peter Harf who is the chairman and CEO of Coty reported in a statement.
In recent years Coty has had a hard time keeping up with the beauty trends. Also the Wall Street has often criticized it for paying huge amount for acquisition. However the 116 year hold company is hoping to revive its image with the use of Kim and Kylie. It’s safe to say that Coty has made the cleverest move by jumping in bed with the Kar-Jenner sisters.
Obvisouly the famous sisters are known for their social media dominance. Any company that chooses to do business with them will be shifting into social media.
Kim Kardashian’s brands
The famous sister of the Kardashian family has founded numerous successful brands under her name. KKW beauty was founded back in 2017 after being motivated by Kylie cosmetics’ flourishing sales. Her beauty company was first launched online just like her half-sister. But after identifying the rapid success of KKW beauty, she then moved to Ulta stores. The deal with Ulta stores helped her generate $100 million in revenues in 2019.
The KUWTK starlet also owns Kim Kardashian fragrance and a shapewear brand called Skims. Kim often uses her social media platforms, especially Instagram to market her brands. The famous family credits the success of their businesses to social media because marketing is free of charge.
The mother of four has her own mobile phone game called Kim Kardashian Hollywood. With a very fascinating portfolio of successful brands, it’s safe to say that next year she’ll be joining the billionaires’ list.