According to Forbes, this would help Jenner pass Facebook CEO Mark Zuckerberg for the title of the youngest self-made billionaire. However, Forbes now seems to believe that their calculations were wrong. Not because of any error on their part, but because- allegedly- Kylie, her manager/mother, Kris, their accountants, & their whole family, lied about Kylie’s billionaire status.
Following this Forbes article, everyone started to believe that Jenner & her family were simply pulling a “Donald Trump,” and lying about how rich they really were. Even the Forbes article says, “the unusual lengths to which the Jenners have been willing to go—including inviting Forbes into their mansions and CPA’s offices, and even creating tax returns that were likely forged—reveals just how desperate some of the ultra-rich are to look even richer.”
Yet, within the story about Forbes now revoking Kylie Jenner’s billionaire status lies a story that is vastly more interesting than the Kardashian-Jenner family simply lying about how rich they really are. On the contrary, this was a very calculated, and rather morally dubious, business move from Jenner & her team to use false documentation to inflate the value of her company and receive a massive payout for it.
This is because, a year after the Forbes cover that claimed that Jenner’s cosmetics company, Kylie Cosmetics, would very soon be worth over a billion dollars, Kylie & her “momager,” Kris Jenner, pocketed a $600 million check by selling an extremely overvalued piece of Jenner’s company Kylie Cosmetics to the dying makeup giant Coty.
This payout- which is easily one of the biggest celebrity deals of the decade- was all thanks to those fraudulent documents that Forbes alleges Jenner and her team used to lead the magazine, & later, Coty, into greatly overvaluing Jenner’s company, Kylie Cosmetics. Thus, if what Forbes is saying is true, Kylie & Kris Jenner lied their way to a $600 million deal- using fraudulent financial documents prepared by their accountants.
This $600 million payout- which, according to the new Forbes reports, makes up more than half of Jenner’s real net worth- came when she sold 51% of Kylie Cosmetics to Coty. At the time, Coty valued Jenner’s cosmetics company at $1.2 billion, which made the $600 million deal a financially sound one.
However, if what Forbes is now saying is correct, that enormous sum will not have just been the result of Forbes, Coty, and everyone else carelessly overvaluing a cosmetics company. Instead, this seems to suggest that the Jenners were able to manipulate the system using shrewd business strategy, false media coverage, and, of course, fraudulent documentation, into cashing out on one of the most lucrative deals that the entertainment industry has ever seen.
Furthermore, the new findings also show us that the 22-year-old media mogul did not execute & gain from this deal alone. On the contrary, if Kylie Jenner had executed this deal independently, the $600 million payout for Kylie Cosmetics would have gone entirely to her, solidifying her now-revoked billionaire status. Instead, Kylie only received $340 million post-tax from this record-breaking deal.
This is because, Forbes reveals, that the rest of the money went to her momager, Kris Jenner. The evidence suggests that Kris Jenner, who vehemently denies these claims, took home around $60 million post-tax from the Coty deal.
Morelli Brothers]. Kris Jenner, the matriarch of the Kardashian-Jenner family, usually loves talking about how she takes 10% of all of her children’s earnings in exchange for being their manager. When it comes to Kylie Cosmetics, however, Kris has always insisted that all of the profits went directly to Kylie, because Kylie supposedly owned the business in its entirety.
However, new reports now show that the Coty deal specifically included a “KMJ 2018 Irrevocable Trust,” controlled “by Kristen M. Jenner, as owning a profit interest in Kylie Cosmetics,” Forbes reported. This means that Kris Jenner not only gained from the Coty deal, but that she also owns a significant share of Kylie Cosmetics.
Making it clear that Kris Jenner was not just the brains behind this operation, but that she benefitted directly from those fraudulent documents that led to Kylie’s Forbes cover, and later, the $600 million Coty deal. Forbes estimates that Kris’ stake in Kylie Cosmetics implies that Kylie Jenner owns only 44.1% of the company- as opposed to 49%. Thus, putting a further dent on Kylie’s net worth.
Clearly, these allegations against the Jenners are about a lot more than just trying to appear wealthier than they already are. In a way, these new reports signal the business acumen of these women, and how they were able to leverage their positions of fame and a fad of a company into a $600 million deal.
From another perspective, these allegations highlight the fraudulent & clearly illegal means that the Jenners employed to cash out on one of the biggest cosmetics deals in Hollywood history.
Author: Shameel Shoaeb Shams