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Kylie Jenner sells majority share in cosmetics business

Coty, the world’s third-largest beauty company, has paid $600m for a 51% stake in Kylie Cosmetics.

Coty Inc? More like Koty Inc. The American beauty conglomerate that owns Max Factor, CoverGirl, and Sally Hansen has agreed to pay $600m for a majority share in Kylie Cosmetics, a deal that now value’s the reality TV star’s business at approximately $1.2bn.

The sale comes just months after Forbes named Jenner the youngest self-made billionaire of all time, thanks to the giant beauty empire that she founded four years ago. This success can be attributed to Jenner’s social media savviness, which she channeled by using her online platform to promote her extremely popular liquid lipsticks to hundreds of millions of followers back in 2015. ‘It’s the power of social media,’ she told Forbes. ‘I had such a strong reach before I was able to start anything.’

The 22-year-old now runs a thriving business which only seems to expand by the day.

Although Coty now owns over half of the company, Jenner will remain the creative lead on both marketing initiatives and product development – particularly on social media. Planning to launch more products under the Kylie brand and use its global footprint to make them available in even more countries around the world, Coty is looking to appeal to a younger demographic with the purchase. They hope that the celebrity-backed business will assist in boosting sales and connecting with shoppers under the age of 35. And who better to lead the way than the vanguard of the influencer beauty industry herself?

‘Jenner brings her incredibly strong brand equity both as a person and as a brand with unparalleled reach across social media,’ said Coty’s chief financial officer Pierre André Terisse. ‘This access to Gen Z is currently lacking in Coty’s portfolio.’

This long-term strategic partnership might just be the answer that traditional cosmetic houses are looking for in order to keep up with the ever-changing mass market which has been hit hard as of late by celebrity competition such as Fenty by Rihanna and Haus Laboratories by Lady Gaga. But, was it worth it? I guess we’ll have to wait and see.