Kylie Jenner sells $600M worth of her makeup company to Coty
That deal really makes your lips pop... Kylie Jenner is selling 51% of her Kylie Cosmetics beauty brand to old school icon Coty, and there's nothing Kris Jenner can do about it. That $600M splurge boosted Coty stock 2.6% and values Kylie's startup at $1.2B. But the viral number is 51% — it gives Coty control of the company, even if Kylie remains its face and 49% owner.
Maybe she's born with it... maybe it's actually Instagram. Coty dominates ancient brands stuck in your middle school bathroom from CoverGirl to Clairol (it even does Adidas' cologne) — and its stock has fallen over 60% in the last 4 years. The new generation of cosmetics was born on social media.
- Non-celeb makeup founder: Insta-candy packaging powered Emily Weiss' Glossier to a unicorn-status valuation over $1B.
- Extra-celeb makeup founders: Kylie Cosmetics enjoys free marketing from her 151M-strong Insta account. Older sis Kim Kardashian's brand boasts 4M more for KKW Beauty. The Honest Company is fueled by founder Jessica Alba, while Goop is dependent on Gwyneth (and her Third Eye).
We’ve seen this face before... except in food, beverages, and razor blades. Older company's brands are out of style, so older company acquires upstart rivals.
- Harry’s Razors got acquired by the owner of Schick (2019)
- RXBar was acquired by Kellogg’s (2018)
- San Diego-based Ballast Point Brewery was acquired by Constellation Brands (2015)
- If you can't beat 'em, buy 'em.