Kim Kardashian's beauty brand is valued at a billion dollars, and the Mughal is now overtaking the wealth of her younger sister Kylie Jenner.
The 39-year-old Mogul has just signed a contract with Coty Inc. to sell a 20 percent stake in the makeup and fragrance company for $ 200 million.
The agreement provides for a "long-term strategic partnership to launch products in new beauty categories and expand from top to bottom worldwide," TMZ reports.
Now Kim is a billionaire! Coty Inc provided $ 200 million to 20 percent of Kardashian's beauty empire when it overtook Sister Kylie Jenner on property stakes (stock image).
Sources have also informed the website that Coty acts as a licensee for skin, hair, people and nail products.
If the company paid $ 200 million for a fifth of the brand, it means that the entire company is worth a billion dollars.
This means Kim overtook her sister Kylie, 22, on the property, as her wealth is valued at $ 900-950 million.
She had been listed as a "homemade billionaire" by Forbes, but they denounced and upset her title by accusing her of inflating numbers and "falsifying" tax returns for the makeup mogul's cosmetics company.
Not happy: The latest news comes after Kylie's fortune was estimated at around $ 900-950 million when Forbes deprived her of the title of a homemade billionaire
Coty bought a majority stake in Kylie's beauty company (51 percent) in 2019 for $ 600 million, while Kim will continue to be responsible for her company.
TMZ also reported that Kim and her team have been working on the deal with Coty for months.
Kim said, "This relationship allows me to focus on the creative elements that are so close to my heart while benefiting from Coty's incredible resources and bringing my products to market worldwide."
Kim's beauty company was recently sued by Seeds Beauty for allegedly fearing that it would reveal Coty's trade secrets.
Something to say: Kylie recently struck back in Forbes after posting a report on Friday alleging that the Jenners and her PR team had inflated the numbers for Kylie Cosmetics
Last month, Kylie Forbes hit after the release released a bomb report accusing her of inflating numbers and falsifying tax returns for the makeup mogul's cosmetics company.
It seemed like the reality star was surprised by the article claiming that Kylie Cosmetics didn't do as well as the Jenners wished – and that the lip kit's creator wasn't actually a billionaire.
Forbes named Kylie the world's youngest homemade billionaire in 2019 and 2020. Of her surprise about her latest article, she wrote on Twitter: "What do I wake up with? I thought this was a serious site.
& # 39; All I see are a series of inaccurate statements and unproven assumptions lol. I have never asked for a title or tried to lie to myself there. Period & # 39;
"Inaccurate statements": Kylie appeared to be shocked by the Forbes article, which claimed that her family had created a "network of lies" to be crowned the youngest billionaire
She followed with a quote from the Forbes report accusing the Jenners and their accountant of making false tax returns.
"Also making tax returns that were probably falsified," is your evidence? So you just thought they were forged? like actually what am I reading. & # 39; Kylie tweeted incredulously.
She followed with another post that focused on the positive: "But okay, I have been blessed beyond my years, I have a beautiful daughter and a successful business, and I am doing perfectly well."
In the release, Kylie was accused of "lying about company numbers and falsifying tax returns" to be called a billionaire.
Report: Kylie is not a billionaire, Forbes claimed. They accused the "home-made" makeup mogul, 22, of "spinning a web of lies" about corporate numbers and "falsifying tax returns".
Based on documents from beauty giant Coty, which acquired a 51 percent stake in Kylie's makeup company worth $ 1.2 billion in January, Kylie Cosmetics generated sales and profits well below the numbers, that the Jenner Kardashian clan had touted for years.
These shock claims come after Forbes put Kylie on the front page and hailed her as the youngest homemade billionaire ever for two years.
Forbes said that tax returns for 2016 had been presented indicating that the earnings were well above the numbers submitted by Coty and that there were only two declarations: Kylie Cosmetics sales had completely collapsed in the two years before the takeover , or the tax returns were made.
Forbes now believes Kylie isn't a billionaire even after pocketing an estimated $ 340 million in post-tax sales.
The magazine claimed that the documents published by Coty in the past six months show that Kylie's business is significantly smaller than people have thought.
Don't worry: Kylie responded to a tweet asking why she cared about it because there was so much going on in the news
Response: Another fan asked her to speak on her platform about George Floyd, the man who was killed by a Minnesota police officer
The publication said: "12-month sales prior to the deal: $ 177 million, according to Coty's presentation, far lower than the estimates released at the time.
"More problematic, Coty said sales were up 40% over 2018, meaning the company only made about $ 125 million this year, nowhere near the $ 360 million that the Jenners Forbes had believed.
"Kylie's skin care line, launched in May 2019, had sales of $ 100 million in the first month and a half," Kylie's representative told us. The documentation shows that the line was actually "on the right track" to end the year with sales of just $ 25 million. & # 39;
They add that the numbers the Jenners offered in previous years couldn't be true.
If Kylie Cosmetics had sales of $ 125 million in 2018, how could it have earned $ 307 million in 2016 as a tax return or $ 330 million in 2017?
Forbes claimed that her new calculations put Kylie's personal fortune at just under $ 900 million.
Kylie's lawyer, Michael Kump, told TMZ, "We looked through the Forbes article accusing Kylie of engaging in fraud and a" network of lies "to inflate her fortune."
"I can't believe it": Kylie shared a picture of the cover and wrote this post in 2018
& # 39; The article is full of lies. Forbes’s allegation that Kylie and her accountants have forged tax returns is clearly wrong, and we urge Forbes to immediately and publicly withdraw these and other statements.
He added: “It is sad that Forbes hired three reporters to investigate the effects of the coronavirus crisis on Kylie's fortune. We wouldn't expect that from a supermarket tabloid, let alone Forbes. & # 39;
In 2019, the star replaced 35-year-old Mark Zuckerberg from Facebook as the youngest homemade billionaire – he was 23 when he made his first billion 11 years ago in 2008.
Forbes dealt with the controversy surrounding the "homemade" title when people were in arms last year that Kylie was from an already privileged background.
They wrote: "Yes, do it yourself (despite much help from her famous family, she didn't inherit her business – she built it). And yes, billionaire (she's worth $ 1 billion)."
The site also claimed that money from Kylie's Coty sale meant that she was one of only 2,095 people in the world with a 10 digit fortune.
Kylie previously said to Forbes, "I wasn't expecting anything. I didn't predict the future. But (the recognition) feels really good. It's a nice pat on the back."
Incredible: Jenner, the youngest sibling of the Kardashian family, started applying lipstick kits in 2015. Kylie Cosmetics signed a contract with Ulta Beauty Inc to place their products in all of the retailer's 1,163 stores (above).
Jenner, the youngest and richest in the Kardashian-Jenner family, started her makeup line in 2015 by selling $ 29 lipstick kits.
The kits were sold out within minutes of launch – an early sign of the performance of their now over 270 million social media fans.
Jenner's products were only sold online when they were first launched on the market. In 2018, however, the brand signed a contract to sell its goods in 1,100 Ulta Beauty stores in the United States.
Earlier this year, she expanded her realm with Kylie Skin – a range of moisturizers under eye creams and facial scrubs.
Jenner had sales of an estimated $ 360 million in 2018.
Forbes herself put Kylie on the cover in March 2019 and hailed her as the youngest homemade billionaire ever.
The move seemed to annoy her brother-in-law Kanye West, whom Forbes only declared a billionaire in April of this year.
The magazine reported that West "reacted with injuries and poison" after not being added to the list of billionaires earlier this year.
All changes: Coty, which struggled with falling sales, saw a 5 percent increase in its share last year after Jenner's announcement
Due in April: The publication valued Kylie's brother-in-law Kanye West's fortune at around $ 1.26 billion in April – the rapper had claimed the number was around $ 3 billion
"You know what you're doing," he wrote a Forbes reporter. "You play with me and I'm not finna lye (sic) down and don't take it in Jesus' name anymore."
After he was finally added to the list, West Forbes & # 39; disputed his net worth of $ 1.26 billion.
"It's not a billion," West wrote of the magazine. "It's $ 3.3 billion because no one at Forbes knows how to count."
Forbes relies on a research team and public and private financial documents to get estimates of the net worth of the world's richest people instead of valuing their claims at face value.
According to the report, the West team made statements that the rapper was $ 17 million in cash, $ 35 million in shares, $ 81 million in "Buildings and Improvements", and $ 21 million Has dollars in country.
Adidas Yeezy, the fashion collaboration between the rapper and the German sportswear brand, has sales of around $ 1.3 billion, with West generating around $ 140 million in sales last year.
Icon: In 2016 Kim Kardashian appeared on the cover of Forbes and was listed under No. 1. 42 on her "100 highest paid celebrities" after earning $ 51 million the previous year – she now has a net worth of $ 370 million
The article suggests that West has been trying to prove his financial status for some time, and that he previously claimed to be a billionaire when he appeared at the Fast Company Innovation Festival 2019.
"When I made Forbes, I showed them a $ 890 million receipt and they still didn't say" billionaire, "" father Kanye, four, told the audience.
In 2016, Kim Kardashian (Kylie's half-sister and Kanye's wife) appeared on the cover of Forbes and was number 42 on her 100 highest-paid celebrities after earning $ 51 million the previous year.
Kim couldn't stop her excitement when she shared the Forbes picture on Instagram on Monday and wrote, “It's an enormous honor to be on the @forbes cover!
"I never thought this would happen and know that my father would be so proud. #NotBadForAGirlWithNoTalent & # 39;
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