Tuesday, March 03, 2020

Blind Item #12

Things are so bad for the company that bought the reality star's cosmetic line that they made up all kinds of excuses to not report their losses from it in their quarterly SEC filings.

42 comments:

Tricia13 said...

Kylie J

MyDogSmiles said...

Kylie

Aquagirl said...

Yeah, Kylie, the ‘self-made billionaire’ 🙄.

Boo said...

To be different I'll say Kat Von D.

hunter said...

Anyone who doesn't understand the meaning of the word "billion" needs to look up the grains of rice video recently made to illustrate Jeff Bezo's wealth.

Then you will fully recognize there is NO WAY IN HELL that Kylie is a "billionaire" when people like George Clooney and Will Smith "only" have multimillions (40-60 M?).

Aquagirl said...

Too soon for it to be Kat Von D. She just sold her company in January. Plus she partnered with Kendo for 11 years prior to that so they would
know the value of her company and the quality of her products.

parissucksliterally said...

Aren't they glad they gave her all that money for her KRAP? The only thing that pisses me off about this is that Kylie got even more rich.

IndieRaga said...

Idiots....what were the CFOs and Accounts Dept doing?
Didn't they check the Balance Sheet before investing?!
IT returns? How difficult is it to decipher the solvency of company?
Estupido!!!

IndieRaga said...

Most people haven't even seen a million for that matter!!
So what you're saying is beyond comprehension....

ZZZedMaster said...

Sh still rich though....

Aquagirl said...

@Paris: She didn’t get nearly the amount of money that’s being reported. But I’m shocked that Coty made such a huge mistake. I’ve worked with them on many projects and they are overly cautious in terms of what they launch. They’ll even cancel something halfway through development if they realize that it’s not going to work.

Studio54 said...

@Aquagirl: Yes Kylie got EXACTLY what was reported. 600K in CASH. I posted the SEC 8K.

cutmasterC said...

I'm going to guess Kim Zolciak-Biermann. Her makeup is crap.

Studio54 said...

From the SEC 8KA, Kylie Jenner was paid $600 MILLION in CASH from Coty for a 51 percent stake in Kylie Cosmetics.
Item 1.01. Entry into a Material Definitive Agreement.

On November 18, 2019, Coty Inc., a Delaware corporation (“Coty”), entered into a Purchase Agreement (the “Purchase Agreement”) with King Kylie, LLC, a Delaware limited liability company (“King Kylie”) and the other parties listed as signatories to the Purchase Agreement (the “Seller Group Parties”).

In accordance with the terms of the Purchase Agreement, and subject to the satisfaction or waiver of the closing conditions set forth therein, Coty will acquire 51% of the equity interests in King Kylie from the applicable Seller Group Parties for a base purchase price of $600,000,000 in cash, subject to certain customary adjustments.

The Purchase Agreement contemplates that Coty and the applicable Seller Group Parties will, upon closing, enter into certain ancillary agreements, including the First Amended and Restated Limited Liability Company Agreement of King Kylie (the “A&R LLC Agreement”) and the Evergreen Collaboration Agreement described below.

Freckles said...

Kardashian Kurse

Studio54 said...

It says in the SEC 8ka: The transaction is expected to close in the first quarter of calendar year 2020.

So if the deal just closed, it wouldn't be in any earnings yet.

Freed Weave said...

as soon as PMK got cocky and self-aggrandizing with that TOTALLY Unnecessary Forbes article was the moment people turned on klyie cosmetics... these peopl neednto stop blowing there own horn

Trapped said...

That’s good for them, dumb ideal I don’t get the appeal at all.

Studio54 said...

Also in the SEC 8ka, Coty gave itself until March 31, 2020 to back out of the deal:
Termination. The Purchase Agreement provides Coty, on the one hand, and the Sellers, on the other hand, with certain customary termination rights prior to the closing, including in the event the transaction does not close by March 31, 2020, subject to extension in certain circumstances.

Aquagirl said...

@Studio: Sorry if you misunderstood my post. I know she got $600K but it was initially rumored that she got much more than that.

Clark Green said...

everyone is incorrectly assuming that kardashian owned 100% of the company, which she did not. not anywhere close. she likely owned somewhere in the 5-7% range of the equity. if Coty bought 51% of the company and had a $1B valuation, her equity was valued at @50-70 million tops. AND....Coty did not hand over the money to her. They invested it in the company. No one walks away with cash. That is not how it works. Kylie would have issued more shares so that Coty has a proportional 51% of outstanding shares. The only way that Kylie gets cash is when they do an IPO and she sells then, or if the entire company is sold. This is way over-blown by the Kylie PR machine who are running around saying she is a billionaire. Nope. Nowhere close and likely not ever from this company.

Studio54 said...

@clarkgreen: Kyle does (or did before she sold 51 percent to Coty) 100 percent of Kylie Cosmetics: .
As CEO, chief marketing officer and chief creative officer, Jenner owns 100 percent of Kylie Cosmetics, while Kris Jenner serves as the company’s chief financial officer. https://www.cnbc.com/2019/03/05/forbes-kylie-jenner-is-the-worlds-youngest-self-made-billionaire.html

SwishyFishy said...

Kylie Cosmetics is made under the umbrella of Colourpop, which is a hugely successful company. Kylie's stuff is also made in the same labs. I would be surprised if this is Kylie, as it's pretty much the same product as Colourpop. I can never understand why women would buy Kylie, which is relatively expensive for what it is, when they can get Colourpop at a fraction of the cost and in almost the same exact shades of lipstick, eye shadows, highlighters etc. Kylie's products are overpriced and overhyped. Her skincare line is a joke. I still can't fathom how she got so successful when it's just repackaged Colourpop.

Sunkist said...

That's why Vylie was on DM over the weekend posing with the finger to nose gesture signaling she's open for bidding to the 'yachters'. Her comment on the post was "snooze you lose". She's gotta go back to making her money the old fashioned way

Morninglorri said...

Lol I thought it JoJo and the Claire’s debacle.

PhillyWilly said...

thanks for all the info, folks. do we know if Kylie cosmetics was turning a profit before the sale? and what type of profit? surely not a billion dollars worth. I cant even imagine sales reached a billion, or even came close. her billionaire status was purely on the coty valuation, which can be terminated before the end of the month...do I have that right?

Huckleberry said...

I sure as hell didn't expect a deep dive on the details of Kylie Jenner's business and financial dealings on the site today.

ladybaus said...

It cracks me-up how many people are denial of how rich Kylie is. She has at LEAST 600 Million in the bank from her deal plus much much more. The Kardashians are huge with young girls and a few years ago were flying off the shelf. Her and PMK are brilliant, BRILLIANT business women and you can't hate on young Kylie for ceasing the moment. It's crazy but true.

Guesser said...

@ladybaus,she wouldn't have that much money even if the reports of a cash deal are true,taxes,etc. But this sounds like Coty trying to back out of the deal,if it wasn't finalized. But I sure don't blame her for making a good deal. Cory should know better. But don't underestimate the value of her product overseas.

Mischief Girl said...

I don't care how much money Kylie received. She's still trash. She is absolute living proof that money can't buy you class.

Lo Key says stop with the censorship already! said...

I, too, like to cease the moment.

ladybaus said...

Lmao, seize and cease. Depends on my mood.

Diana said...

"Her and PMK are brilliant,"
Perhaps they can teach you how to use proper grammar ?

ladybaus said...

That is proper grammar

Aquagirl said...

@Mischief: But apparently it can buy you a boob job, based on her recent pics.

BigBen10 said...

Good.

Sd Auntie said...

Aquagirl. Can u tell me why Coty no longer makes 10 o six?? Been looking for it and it's nowhere to be found!! Thanks

Texcal said...

So much hate! You all see "skanky girls". I see "saavy business marketeers." It's called branding folks!

timebob said...

I have an Ulta near me. When it first launched they were sold out constantly. But with everything the fad fades and much better products are one the market now. Her stuff is piled up at Ulta now. It's not cool anymore and kids move on to the next hot thing. Coty got played being caught up in her Social Media presence. Which are mostly bought bots and smoke and mirrors. They will not see the ROI on that investment. The Kartrashians are just high end gypsies ripping off companies wherever they go.

Studio54 said...

The Kylie deal with Coty is a completed deal:

On January 6, 2020, Coty completed the transaction to create a long-term strategic partnership with Kylie Jenner to jointly build and further develop Kylie's existing beauty business. Under the terms of the agreement, Coty acquired a 51% stake in the partnership for $600 million.

https://www.coty.com/in-the-news/press-release/coty-inc-reports-fiscal-second-quarter-2020-results

NicQuerica said...

They probably thought they were simply buying it at a discount and would easily be able to turn it around to recoup losses.

mooshki said...

@ladybaus: Proper grammar is "She and PMK..."

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