In what has become big business news, Kylie Jenner has sold off 51% of her stake in Kylie cosmetics to Coty for a reported $600 million.
This move is seen as incredibly smart as it allows Kylie’s brand to spread to other markets and it also gives her a safety net if things do not work out.
In a statement to the press, Kylie Jenner said of the sale, “This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse,”
Meanwhile, Coty CEO Pierre Laubies also said in the press release of the sale that the purchase was “an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.”
According to an article on Forbes, this is a risky move for Coty as there have been a fall in sales for the Kylie brand with a study showing that while many people purchased the product, it also doesn’t engender brand loyalty.
With a name as big as Coty, this is something that could perhaps be fixed.
Kylie Jenner and her team will continue to handle her social media presence with her mammoth 150 million followers on Instagram and 30 million Twitter a big reason for the success of her company so far.
This sale also reinforces Kylie Jenner’s status as a billionaire as a $600 million sale for 51% stake in a company suggests that the entire company is valued at about $1.2 billion.
Those are some crazy figures.
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