It was only recently learned that the beauty care brand Kim Kardashian West (KKW Beauty) had just been valued at $ 1 billion after the Coty company, which owns the Covergirl brand, paid $ 200 million to take over 20% of the reality show star company .
However, despite the fact that media such as Vanity Fair and The Daily Mail, among others, launched to include the most media of the Kardashian clan in the select club of billionaires , the reality it is probably much more complex, according to a Business Insider report .
According to Forbes estimates, Kardashian West’s net worth would exceed $ 900 million , but the “high” valuation of this company probably has more to do with the presence of the colorful woman on social networks than with her income. real.
So the new $ 1 billion valuation the KKW Beauty brand is enjoying right now is only part of a projected value as a result of Coty’s new investment, and not because the company has already capitalized that $ 1 billion.
Quite simply, these types of valuations are usually carried out to calculate the net worth of a business owner. Therefore, from Forbes insist that it is preferable to “cut” at least 10% of private assets like that before estimating a person’s net worth.
On the other hand, Forbes analysts do not believe that Kardashian West is the sole owner of KKW Beauty and that Kris Jenner, her mother, would own 8% of the business, although this information could not be corroborated due to the rejection of the involved in giving details of the business.
Earlier this year, an analysis of the finances of the couple formed by Kim Kardashian and musician Kanye West, with a view to their possible inclusion in the list of Forbes billionaires, showed that the couple owns $ 35 million in shares. , $ 21 million in real estate, nearly $ 4 million in vehicles, and $ 297,050 in livestock, but it is unclear how these assets are divided between them or even if they are divided.
Kardashian West also owns the Skims girdle brand, receives large sums of money from sponsored posts on social media, and continues to appear on her family’s reality show “Keeping Up with the Kardashians.”
Therefore, considering that the couple shares a debt of 53 million dollars, so that the media character of Kim is included with all its nuances in the club of nine zeros, all their assets would have to add up to more than 1,000 million dollars, after you pay what you owe to your creditors.
Hence, it is rather premature to call her a multimillionaire based only on KKW Beauty’s new financial valuation.
Controversy with her sister’s money
Something similar occurs with Kylie Jenner, the younger sister of Kardashian West, when in March 2019 the Coty company itself acquired a majority stake in its company, Kylie Cosmetics, which also raised its valuation to $ 1 billion.
So Forbes did consider Jenner the youngest billionaire in the world , although a year later, just in May 2020, the title was revoked and Jenner was accused of having created a “network of lies” to exaggerate the profits of her company. during years.
The young woman, meanwhile, continues to deny that she misled Forbes about her finances.