Kim Kardashian has reportedly agreed to buy back a 20% stake in her beauty business, KKW Beauty, from Coty Inc. for $200 million. The deal reportedly values KKW Beauty at $1 billion.
Kardashian first partnered with Coty in 2019 in a deal that valued the company at $1.2 billion. However, the partnership has not been without its challenges. In recent months, KKW Beauty has faced declining sales and competition from other celebrity-backed beauty brands.
Image Credit: Coty
The deal to buy back the stake from Coty gives Kardashian full control of KKW Beauty. It also comes at a time when Kardashian is expanding her business empire. In recent months, she has launched a new shapewear line, SKIMS, and a fragrance line, KKW Fragrance.
“I am excited to have reacquired my majority stake in KKW Beauty,” Kardashian said in a statement. “This is an important moment for me as the founder and visionary of the brand, and I look forward to continuing to build KKW Beauty as a global beauty brand.”
The deal is expected to close in the second half of 2023.
Here are some of the key details of the deal:
- Stake: Kardashian is buying back a 20% stake in KKW Beauty from Coty Inc.
- Value: The deal values KKW Beauty at $1 billion.
- Control: The deal gives Kardashian full control of KKW Beauty.
- Timing: The deal is expected to close in the second half of 2023.
Why is this important?
The deal is a major victory for Kardashian. It gives her full control of her beauty business at a time when it is facing challenges. It also comes at a time when Kardashian is expanding her business empire.
The deal is also a sign of the growing power of celebrity-backed brands. Kardashian is one of the most popular celebrities in the world, and her brand has a loyal following. The deal shows that Coty is still willing to invest in celebrity-backed brands, even in the face of challenges.
What does this mean for the future of KKW Beauty?
The deal gives Kardashian the freedom to chart the future of KKW Beauty. She could choose to focus on expanding the brand’s reach, or she could choose to focus on developing new products. The possibilities are endless.
However, the deal also comes with some risks. Kardashian will need to find a way to turn around the brand’s declining sales. She will also need to find a way to compete with other celebrity-backed brands, such as Kylie Cosmetics and Rihanna’s Fenty Beauty.
Overall, the deal is a major victory for Kardashian. It gives her full control of her beauty business at a time when it is facing challenges. It also comes at a time when Kardashian is expanding her business empire. The future of KKW Beauty is uncertain, but Kardashian has the opportunity to make it a success.
