Even if Kylie Jenner really is banging Drake, it’s important to remember that she is also capable of making good decisions.
She has just struck a deal that sells part of her company, while keeping creative control and raking in $600 million. Wow!
From the company’s launch in 2015, Kylie Cosmetics remained entirely owned by its creator, Kylie Jenner.
That has now changed.
Kylie has sold a 51% stake in the company — a controlling share — to Coty.
During the purchase, Kylie Cosmetics was valued at $1.2 billion.
If you’ve done the math, you realize that Kylie just raked in about $600 million in cash.
The sale places Kylie Cosmetics within the same family as brands like Covergirl, OPI, Rimmel, GHD, and Clairol.
According to the official release, despite losing control of the company, Kylie will continue to enjoy creative control of the company.
In exchange, Coty can reap the benefits of Kylie Cosmetics’ popularity while also expanding its market.
Kylie Jenner released a statement about the sale.
"I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world," she begins.
The statement reads: "I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect."
"And," Kylie continues, "engaging with my fans across social media."
The statement also sheds light on the benefits of making this massive sale.
"This partnership will allow me and my team to stay focused on the creation and development of each product," Kylie explains.
Her statement continues: "While building the brand into an international beauty powerhouse."
Coty is certainly that. And Kylie isn’t the only one excited about this deal.
Coty’s Chief Creative Officer, Pierre Laubiues, released his own statement.
"We are pleased to welcome Kylie into our organization and family," Pierre writes.
He adds: "Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation."
Pierre continues: "and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential."
Coty’s Chief Financial Officer Pierre-Andre Terisse (a lot of Pierres, huh?) spoke about the acquisition during a call with investors.
"We don’t see any weaknesses. We see strength everywhere," Pierre-Andre assures them.
"We see strength in cosmetics," he affirms.
Pierre-Andre adds: "We see strength in skincare both digitally and in the launch in Ulta."
"The skincare is pretty early days but there is more than 50 percent repeat purchase among skincare customers,” Pierre-Andre observes.
This was when he was asked about concern that Kylie’s popularity is merely a "fad."
“We’ve not seen any sign that this will not be a sustainable beauty brand," he emphasized.
Pierre-Andre notes: "The fact that she has been able to move from cosmetics to skincare and get such success is already proof that there is something."
Only time will tell whether Coty made the right call with this acquisition.
But now Kylie Jenner’s net worth is matched by her ample liquid currency, thanks to this transaction.
Kanye West has complained that Forbes not labeling him as a billionaire is a "stab."
But his estimated net worth is $250 million. Judging by that, Kylie has more than that in cash alone.
