World News
Kylie Jenner no longer a billionaire according to Forbes: She lied
More than a decade into their fame, the Kardashian-Jenners tend to induce eye rolls and sighs among jaded media consumers. But when it comes to their wealth, even critics of reality TV’s first family are intrigued; the Kardashian-Jenner machine—and the cash it generates—has been the subject of articles, podcasts, even books. But no one cares more about the topic than the family itself, which has spent years fighting Forbes for higher spots on our annual wealth and celebrity earnings lists.
So when the youngest of the clan, Kylie Jenner, sold 51% of her Kylie Cosmetics to beauty giant Coty in a deal valued at $1.2 billion this January, it was a watershed moment for the family. One of the greatest celebrity cash-outs of all time, the transaction seemed to confirm what Kylie had been saying all along and what Forbeshad declared in March 2019: that Kylie Jenner was, indeed, a billionaire—at least before the coronavirus
“Kylie is a modern-day icon, with an incredible sense of the beauty consumer,” Coty chairman Peter Harf gushed when announcing the acquisition in November.
But in the deal’s fine print, a less flattering truth emerged. Filings released by publicly traded Coty over the past six months lay bare one of the family’s best-kept secrets: Kylie’s business is significantly smaller, and less profitable, than the family has spent years leading the cosmetics industry and media outlets, including Forbes, to believe.
Of course, white lies, omissions and outright fabrications are to be expected from the family that perfected—then monetized—the concept of “famous for being famous.” But, similar to Donald Trump’s decades-long obsession with his net worth, 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.
“It’s fair to say that everything the Kardashian-Jenner family does is oversized,” says Stephanie Wissink, an equity analyst covering consumer products at Jefferies. “To stay on-brand, it needs to be bigger than it is.”
Based on this new information—plus the impact of Covid-19 on beauty stocks and consumer spending—Forbes now thinks that Kylie Jenner, even after pocketing an estimated $340 million after taxes from the sale, is not a billionaire.
As with other Kardashian ventures, Kylie’s business began as a way to cash in on a minor scandal. The youngest of the family, she spent more than a year denying tabloid speculation that she was using lip filler injections before eventually finally fessing up to it in May 2015. Far from being embarrassed about being caught in a lie, she—and her shrewd mother, Kris—seized it as a marketing opportunity.
With $250,000 of her earnings from modeling, endorsements and Keeping Up With The Kardashians appearances, Kylie launched her first batch of 15,000 lip kits, consisting of a lip liner and matching lipstick, in November 2015. Thanks to clever Instagram marketing, the $29 kits were gone in less than a minute. “Before I even refreshed the page, everything was sold out,” she later told Forbes.
By the end of 2016, Kylie had dozens of new products and a reputation as a skyrocketing new entrant in the cosmetics industry. A few months after her sister Kim Kardashian West scored a Forbes cover in July 2016, Jenner publicists began a campaign to “get a Forbes cover for Kylie.” Revenues were $400 million over the business’ first 18 months, they said, with a personal take-home pay of $250 million for Kylie. Pressed for proof, they opened up their books. During meetings at Kris Jenner’s palatial Hidden Hills, California, estate and the family accountant’s office nearby, Forbes was shown tax returns detailing $307 million in 2016 revenues and personal income of more than $110 million for Kylie that year. It would have been enough to put her at N0. 2 on the Celebrity 100 list, behind only Taylor Swift, the accountant was quick to point out. But the documents, despite looking authentic and bearing Kylie Jenner’s signature, weren’t exactly convincing since the story they told, of e-commerce brand Kylie Cosmetics growing from nothing to $300 million in sales in a single year, was hard to believe.
After speaking with a handful of analysts and industry experts who also found the Jenners’ claims implausible, we settled on a more reasonable estimate for our 2017 Celebrity 100 list: $41 million in overall earnings for Kylie, good for the No. 59 spot. Kris was “so frustrated,” the Jenners’ PR flack shot back. “We’ve done so much.”
Two months later, a story appeared in WWD, a trade publication known as “the bible of fashion,” using the exact numbers the Jenners first tried to give Forbes. “There has been raging speculation about the size of her business, with guesstimates ranging from $50 million up to $300 million,” the story reads. “Well, here’s the bad news for more-established beauty players: Jenner’s surpassed the higher figure with ease. Kylie Cosmetics actually has done $420 million in retail sales—in just 18 months—Kris Jenner revealed. . . . ” It was the first time the Jenners had publicly disclosed the size of the business, the story boasted—“and they provided WWD with documentation.”
That sky-high revenue number—repeated everywhere from People to CNBC and Fortune—took hold. By the summer of 2018, when Forbes set out to calculate Kylie’s net worth for our list of the richest self-made women, the industry’s opinion of Kylie’s business had shifted. Those huge revenues were “totally possible,” said one analyst, adding that she had heard similar numbers herself. Another suggested revenues were around $350 million. The estimates kept climbing. Revenues were $400 million, according to a Piper Jaffray research note in 2018. An Oppenheimer report projected sales would top $700 million by 2020.
The Jenners offered us their own number: 2017 revenues were up 7%, they said, to $330 million. “No other influencer has ever gotten to the volume or had the rabid fans and consistency that Kylie has had for the last two and a half years,” an executive at e-commerce platform Shopify, which manages Kylie’s online store, told Forbes at the time. Based on her rapid success—certified by industry sources, plus those 2016 tax returns—Kylie appeared on the cover of Forbes magazine in July 2018, ranking No. 27 on our listing of the richest self-made women. At age 20, she was worth $900 million, we estimated, and would soon become the youngest self-made billionaire ever.
“Thank you for this article and the recognition,” Kylie Instagrammed. Kim Kardashian West tweeted her congratulations—twice. “I am SO proud,” Kris Jenner wrote, finally pleased.
The next month Kylie celebrated her 21st birthday at West Hollywood nightclub Delilah, in a Barbie-themed blowout complete with a pink ball pit, performances by Travis Scott and Dave Chappelle—and bartenders in black T-shirts with Kylie’s Forbes cover printed on them, her face plastered next to the words “America’s Women Billionaires.” By early the next year, she officially crossed the ten-digit threshold.
Any doubts that Kylie wasn’t a billionaire were seemingly erased in November 2019, when $8.6 billion (revenues) Coty announced it was snapping up 51% of Kylie Cosmetics for $600 million, effectively valuing the business at about $1.2 billion. The deal gave the struggling 116-year-old Coty a hip, social media-savvy brand to help turn around its sagging balance sheet. It gave Kylie a major chance at expansion, plus a boatload of cash and apparently clear proof of her billionaire status.
In a call with stock analysts, Coty’s chief financial officer heralded the deal as “a compelling financial equation” that would help “make Coty a modern, growing and profitable beauty player.” The analysts were immediately skeptical. It looked like Coty was paying way too much for a celebrity brand that could prove to be just a fad, one charged. Another asked how Coty could be sure Kylie will remain committed to promoting the business in the years to come.
Then there were Kylie’s financials. Revenues over a 12-month period preceding the deal: $177 million, according to the Coty presentation—far lower than the published estimates at the time. More problematic, Coty said that sales were up 40% from 2018, meaning the business only generated about $125 million that year, nowhere near the $360 million the Jenners had led Forbes to believe. Kylie’s skin care line, which launched in May 2019, did $100 million in revenues in its first month and a half, Kylie’s reps told us. The filings show the line was actually “on track” to finish the year with just $25 million in sales.
“I think everybody was surprised,” says Wissink, the Jefferies analyst, who was on the call. “The negative that came out of that announcement was that the business was a lot smaller than everybody had expected.”
So much smaller, in fact, that there’s virtually no way the numbers the Jenners were peddling in earlier years could be true either. If Kylie Cosmetics did $125 million in sales in 2018, how could it have done $307 million in 2016 (as the company’s supposed tax returns state) or $330 million in 2017?
One explanation: Kylie’s business quietly fell by more than half in a single year. If so, Coty paid up for a “high-growth” brand that is actually a much smaller business than it was just a few years ago. (Coty would not answer any questions about Kylie Cosmetics for this story.) Data from e-commerce firm Rakuten, which tracks a select number of receipts, suggests there was a 62% decline in Kylie’s online sales between 2016 and 2018.
Still, virtually every industry expert polled by Forbes thinks the business couldn’t have collapsed by so much so quickly. “It seems unlikely that much revenue could have evaporated overnight,” says Evercore analyst Omar Saad. “There doesn’t seem to be any evidence the business has cratered,” adds cosmetics veteran Jeffrey Ten, who has led companies like Note Cosmetics, Nyx and Calvin Klein Beauty. “If so, why would Coty buy it?”
More likely: The business was never that big to begin with, and the Jenners have lied about it every year since 2016—including having their accountant draft tax returns with false numbers—to help juice Forbes’ estimates of Kylie’s earnings and net worth. While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying.
There’s also the issue of profit: Forbes had been estimating that her business, which has little overhead, was notching 44% net margins. But Coty’s filings indicate that Kylie’s profits are likely lower than we figured, since her Ebitda margin—which factors in some, but not all, of her expenses—is only around 25%.
For years, the Jenners insisted that all of those profits went directly to Kylie because she owned the business outright. But Coty’s purchase agreement specifically lists a “KMJ 2018 Irrevocable Trust,” controlled by Kristen M. Jenner, as owning a profit interest in Kylie Cosmetics. Upon the sale, the document says the trust would get a capital, or ownership, interest in the company. The Jenners initially told Forbes that the trust holds money Kylie Jenner earned before she turned 18 and that Kylie is its beneficiary. But the trust appears to have been created well after Kylie turned 18, and the Jenners declined to offer any proof to back up their claims. Given the lack of clarity—and the history of lies—we’re erring on the side of caution and assuming that the trust belongs to Kris Jenner. That means Kylie Jenner owns an estimated 44.1% of Kylie Cosmetics, rather than 49%.
“You have to remember they are in the entertainment business,” says Ten. “Everything in entertainment has to be exaggerated to get attention.”
Taking all this new information into account and factoring in the pandemic, Forbes has recalculated Kylie’s net worth and concluded that she is not a billionaire. A more realistic accounting of her personal fortune puts it at just under $900 million, despite the headlines surrounding the Coty deal that seemed to confirm her billionaire status. More than a third of that is the estimated $340 million in post-tax cash she would have pocketed from selling a majority of her company. The rest is made up of revised earnings based on her business’ smaller size and a more conservative estimate of its profitability, plus the value of her remaining share of Kylie Cosmetics—which is not only smaller than the Jenners led us to believe but is also worth less now than it was when the deal was announced in November, given the economic effects of the coronavirus.
Coty’s share price has fallen more than 60% since the deal was struck, and even better-performing competitors like Ulta Beauty and Estée Lauder are still down single digits. Add that to the fact that Wall Street tends to think Coty paid too much to begin with and there is no way to realistically peg Kylie’s net worth above a billion—despite her massive cash-out.
As usual, we asked the Jenners for input on our numbers. But pressed for answers on the many discrepancies, the typically chatty family did something out of character: They stopped answering our questions.
Additional reporting by Chloe Sorvino.
Source: Forbes
World News
Ice Spice returns with “Gimmie A Light”
Today, GRAMMY® Award-nominated global superstar Ice Spice returns with “Gimmie A Light” — the first official single from her forthcoming debut album Y2K. Set for release via 10K Projects/Capitol Records, the massively anticipated Y2K is due out later this year. Go here to stream/download “Gimmie A Light,” and check out the video here.
Produced by Ice Spice’s longtime collaborator RiotUSA — who also handled production on career-defining hits like her gold-certified breakout single “Munch (Feelin U)” — “Gimmie A Light” centers on a sample from dancehall legend Sean Paul’s 2002 single “Gimme the Light.” With all the effortless star power that made her an icon soon after emerging from New York drill scene, the Bronx Baddie unleashes a two-minute anthem spotlighting her whip-smart bars, rapid-fire delivery, and potent vocal command. Slick and self-possessed, the result is a high-energy track stacked with bouncy beats and irresistible hooks.
For the video to “Gimmie A Light,” Ice Spice once again joined forces with fellow New York City natives George and Frederick Buford, aka The Evil Twins — the fast-rising filmmaking duo behind the visuals for past hits like “Deli” and “Boy’s a liar Pt. 2” (her platinum-certified, chart-topping 2023 collaboration with PinkPantheress). Equal parts fantasy and hyperreality, “Gimmie A Light” places Ice Spice in a dizzying sequence of high-glamour scenarios: sipping Patrón El Alto on the dancefloor with a shiny piece of bling bearing her own likeness; posing with fat stacks of cash in her J’adore Dior baby tee; twerking in the back of a hot-pink Range Rover, surrounded by stuffed animals as the smoke-filled SUV speeds through the streets of her hometown.
Last month at Coachella, Ice Spice thrilled the crowd with a sneak-peak performance of “Gimmie A Light.” Her debut at the famed festival instantly drew raves from the likes of UPROXX, who proclaimed that Ice Spice “will almost certainly headline Coachella in the near future if her trajectory continues.”
Due out later this year, Y2K has been hailed as one of the most highly anticipated albums of 2024. With its title nodding to her birthday (January 1, 2000), Ice Spice’s full-length debut will also include her recent smash single “Think U The Shit (Fart).” The album arrives on the heels of her widely acclaimed debut EP Like..? — a 2023 release that landed on best-of-the-year lists from Pitchfork, Rolling Stone, The New York Times, and more and featured hits like “Munch (Feelin U)” and the platinum-selling “In Ha Mood” and “Princess Diana.”
World News
Dennis Bergkamp: 55 Years of Football Brilliance
Dennis Bergkamp, the legendary Dutch footballer, celebrated his 55th birthday today amidst a global outpouring of love and admiration from fans, clubs, and football personalities.
🇳🇱🥳 Happy Birthday to Dennis Bergkamp! What a magnificent player. pic.twitter.com/NVB7bsrBGT
— CentreGoals. (@centregoals) May 10, 2024
Known for his exceptional skill and contributions to both Ajax and Arsenal, Bergkamp’s birthday has become a worldwide celebration of his illustrious career, highlighting his impact on the sport and his enduring legacy.
From Ajax to Arsenal, Bergkamp’s artistry on the pitch has left an indelible mark, with fans and experts alike hailing him as one of the greatest players in football history.
There will never be another Dennis Bergkamp 👑🇳🇱pic.twitter.com/qoxxC4ya2O
— Gunners (@Gunnersc0m) May 10, 2024
As the tributes pour in, it’s clear that Bergkamp’s influence extends far beyond the trophies and accolades, cementing his place in the hearts of football fans worldwide.
Happy birthday, Dennis Bergkamp, and here’s to many more years of celebrating your remarkable contribution to the beautiful game
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Charli XCX Releases ‘360’ Video Featuring All-Star Cast
Charli XCX today releases ‘360’ – the fourth track taken from her highly anticipated forthcoming new album ‘BRAT’.
You can listen HERE and watch the Aidan Zamiri-directed video HERE.
The blockbuster video stars an impressive all-star cast of friends and collaborators including Julia Fox, Chloë Sevigny, Gabbriette, Alex Consani, Rachel Sennott, Emma Chamberlain, A. G. Cook, Hari Nef, Isamaya Ffrench, Matisse Andrews, Quenlin Blackwell, Sakura Bready, Chloe Cherry, Greer Cohen, Anna Collins, Blizzy McGuire, Tess McMillan, Salem Mitchell, Peri Rosenzweig, Richie Shazam and Niki Takesh.
‘BRAT’, Charli’s eagerly awaited sixth studio album, will be released on Friday 7th June and promises to be an exhilarating club record built around high art references and social commentary. The album includes the hit single ‘Von dutch’ – the brash and synth heavy first taste of the record – alongside recent releases ‘Club classics’ and ‘B2b’.
You can pre-order ‘BRAT’ HERE and pre-save ‘BRAT’ HERE.
In support of ‘BRAT’, Charli will be embarking on her biggest ever headline shows in arenas throughout the UK in November and December. Charli is also teaming up with longtime collaborator Troye Sivan for their highly anticipated co-headline US arena tour ‘Charli XCX & Troye Sivan Present: Sweat’, including a newly announced second show at The Kia Forum in Los Angeles. Tickets can be found HERE.
Charli threw a momentous Boiler Room in New York’s Brooklyn in February to launch the ‘BRAT’ campaign with A. G. Cook, George Daniel, Finn Keane and Doss. The show broke the record for the most ever RSVPs to a Boiler Room event, with over 40k people registering to attend. Featuring special guest appearances from the likes of Addison Rae and Julia Fox, the show has easily become one of the viral moments of the year. You can watch the full stream of ‘Boiler Room & Charli XCX Presents: PARTYGIRL’ HERE.
Alongside her new album, Charli has been working on multiple film & TV projects following the breakout success of her Barbie soundtrack contribution ‘Speed Drive’ last year. She is co-executive producing the score for the A24 film ‘Mother Mary’ with Jack Antonoff and also producing original music for Benito Skinner’s series ‘Overcompensating’ on Prime Video. In addition, Charli will star in the Daniel Goldhaberremake of 1978 cult horror film ‘Faces of Death’.
Avant-pop and electronic superstar Charli XCX has become an iconic figure in the arts, having helped expand the landscape of popular music over the last decade by seamlessly traversing the underground and mainstream with her artistic output. Over the course of a trailblazing career, the multi-hyphenate creative has earned critical acclaim for her innovative style and entrepreneurial spirit and seen her forward-thinking approach reshape pop culture in the process.
Her lasting impact was cemented last year when Charli was honoured with the Visionary Award at the annual Ivor Novellos in London, while she also received the Powerhouse Award at Billboard’s Women In Music ceremony in March and the ASCAP Global Impact Award earlier this week.
Charli XCX assets can be found here.
‘BRAT’ Tracklist:
1. 360
2. Club classics
3. Sympathy is a knife
4. I might say something stupid
5. Talk talk
6. Von dutch
7. Everything is romantic
8. Rewind
9. So I
10. Girl, so confusing
11. Apple
12. B2b
13. Mean girls
14. I think about it all the time
15. 365
Charli XCX 2024 Tour Dates:
Sat 01/06/24 – Barcelona, Spain – Primavera (Live) – Sold Out
Fri 07/06/24 – London, UK – Outernet (PARTYGIRL DJ Set) – Sold Out
Tue 11/06/24 – New York, NY – Knockdown Center (Live) – Sold Out
Wed 12/06/24 – Chicago, IL – Radius (Live) – Sold Out
Sat 15/06/24 – Los Angeles, CA – Shrine (Live) – Sold Out
Wed 19/06/24 – Mexico City, Mexico – Club Loo Loo (PARTYGIRL DJ Set) – Sold Out
Fri 21/06/24 – Sao Paulo, Brazil – Club Zig (PARTYGIRL DJ Set) – Sold Out
Fri 28/05/24 – Somerset, UK – Glastonbury Festival (PARTYGIRL DJ Set) – Sold Out
Sat 14/09/24 – Detroit, MI – Little Caesars Arena
Mon 16/09/24 – Montreal, QC – Place Bell
Wed 18/09/24 – Toronto, ON – Scotiabank Arena
Fri 20/09/24 – Columbus, OH – Nationwide Arena
Mon 23/09/24 – New York, NY – Madison Square Garden
Wed 25/09/24 – Philadelphia, PA – Wells Fargo Center
Thu 26/09/24 – Baltimore, MD – CFG Bank Arena
Sat 28/09/24 – Boston, MA – TD Garden
Mon 30/09/24 – Chicago, IL – United Center
Wed 02/10/24 – Nashville, TN – Bridgestone Arena
Thu 03/10/24 – Atlanta, GA – State Farm Arena
Sat 05/10/24 – Miami, FL – Kaseya Center
Sun 06/10/24 – Orlando, FL – Kia Center
Wed 09/10/24 – Dallas, TX – American Airlines Center
Fri 11/10/24 – Denver, CO – Ball Arena
Sun 13/10/24 – Phoenix, AZ – Footprint Center
Tue 15/10/24 – Los Angeles, CA – Kia Forum
Wed 16/10/24 – Los Angeles, CA – Kia Forum
Fri 18/10/24 – San Diego, CA – Viejas Arena
Sun 20/10/24 – San Francisco, CA – Chase Center
Tue 22/10/24 – Portland, OR – Moda Center
Wed 23/10/24 – Seattle, WA – Climate Pledge Arena
Wed 27/11/24 – Manchester, UK – Co-op Live Arena
Thu 28/11/24 – London, UK – The O2
Fri 29/11/24 – Birmingham, UK – Resorts World Arena
Mon 02/12/24 – Glasgow, UK – OVO Hydro Arena
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Miss USA Noelia Voigt resigns title on mental health grounds
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TikTok sues the US Government to stop a potential ban
TikTok is suing the U.S. government to stop enforcement of a bill passed last month that seeks to force the app’s Chinese owner to sell the app or have it banned. (more…)
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