Kylie Jenner Sells Majority Stake in Kylie Cosmetics
Kylie Jenner sold a 51% controlling stake in Kylie Cosmetics to Coty Inc. in November 2019 for $600 million, with the company valued at roughly $1.2 billion at the time of the deal. The transaction included the Kylie Cosmetics brand, its intellectual property, and the Kylie Beauty product line, while Jenner retained a minority interest and remained involved in creative direction and marketing. The move was widely reported as one of the most high-profile beauty industry exits by a social media entrepreneur, with details confirmed by Coty and reported by major outlets including Forbes and Business Insider Kylie Jenner Coty deal explained.
The sale came after Kylie Cosmetics grew from a lip kit launch in 2015 to a billion-dollar valuation brand built largely on Instagram, YouTube, and direct-to-consumer e-commerce. Coty, a global beauty company with portfolio brands including Rimmel, CoverGirl, and Clairol, acquired the stake to expand its presence in the color cosmetics and influencer-driven beauty segment. The deal structure included upfront cash, earn-out provisions tied to future performance, and ongoing royalty streams for Jenner based on brand revenue targets Kylie Jenner sells Kylie Cosmetics to Coty.
Financial Terms and Valuation of the Kylie Cosmetics Sale
The $600 million upfront payment for a 51% stake implied a post-money valuation of approximately $1.2 billion for Kylie Cosmetics, making Jenner one of the youngest self-made billionaires on paper at the time. The deal included performance-based earn-outs that could increase the total consideration if the brand met specific revenue and profitability benchmarks over a multi-year period. Coty structured the acquisition to integrate Kylie Cosmetics into its Professional Beauty and Consumer Beauty divisions while maintaining the brand's independent identity and DTC digital model Coty SEC filing on acquisition.
Post-sale financial disclosures and quarterly reports from Coty provided visibility into the brand's revenue contribution and integration progress within the larger portfolio. Analysts noted that the deal allowed Coty to access the high-growth influencer beauty segment without building the brand organically, while Jenner reduced operational risk and gained liquidity without fully exiting the business. The transaction also highlighted the broader trend of legacy beauty conglomerates acquiring digitally native brands to capture younger consumer demographics and social media-driven demand Coty Kylie Cosmetics integration strategy.
Aftermath and Current Status of Kylie Cosmetics Under Coty Ownership
Following the acquisition, Kylie Cosmetics continued to operate as a distinct brand within Coty's portfolio, with Jenner maintaining a role in product development, branding, and social media campaigns. Coty reported the brand's performance in its quarterly earnings releases, noting revenue trends, margin improvements, and the impact of digital marketing and celebrity-driven product launches on overall segment results. The company also expanded the Kylie Cosmetics product line into new categories and retail channels while leveraging Coty's global distribution and supply chain infrastructure.
Kylie Jenner's net worth and business portfolio shifted after the sale,