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Kristina

Kylie Jenner stripped of billionaire status by Forbes after lying about net worth and forging tax returns

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Earlier this year, Kylie Jenner sold half of her cosmetics company in one of the greatest celebrity cash outs of all time. But the deal’s fine print reveals that she has been inflating the size and success of her business. For years.

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 cashouts of all time, the transaction seemed to confirm what Kylie had been saying all along and what Forbes had declared in March 2019: that Kylie Jenner was, indeed, a billionaire—at least before the coronavirus.

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.

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 tax from the sale, is not a billionaire.

Full article: Forbes

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24 minutes ago, STJ said:

She's so shady, I've always wondered how selling lipsticks could have earned her $1B...bey8

Having said that, $340M is still a lot of money, and something 90% of people will never see...brit8

99% honestly dead2 She's still rich as all fuck but still, why lie? dead2 

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This lame ass response though, "I can name a list of 100 things more important right now than fixating on how much money I have" okay but when you were on the cover of Forbes you were to quick to show it everywhere lol3 

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Forbes magazine has struck celebrity Kylie Jenner from its list of billionaires and accused her family of inflating the value of her cosmetics business. The magazine said the family went to "unusual lengths" to present its youngest member as richer than she was. In tweets, Ms Jenner dismissed the article as "inaccurate statements and unproven assumptions lol". "i've never asked for any title or tried to lie my way there" she wrote. "i can name a list of 100 things more important right now than fixating on how much money i have" she added.

The move reverses the status Forbes conferred on Ms Jenner in 2019, when it declared her a self-made billionaire. The description sparked controversy, with critics scoffing at the "self-made" title and pointing to her upbringing as a Kardashian family reality television star. Forbes, which is known for its widely cited billionaire rankings, credited Ms Jenner's status to the success of her cosmetics company, which she founded in 2015 and includes Kylie Cosmetics and Kylie Skin. Ms Jenner last year announced she was selling a 51% stake in the company to beauty giant Coty for $600m.

Forbes said the family's accountant had provided it with tax returns that suggested the firm had done more than $300m in sales in 2016 and that publicists claimed sales of $330m the following year. But information shared by Coty, which is publicly traded, showed Ms Jenner's firm is "significantly smaller and less profitable than he family has spent years leading the cosmetics industry and media outlets, including Forbes, to believe", Forbes said. Coty's presentation to investors about the business suggested the firm did only $125m in sales in 2018.

"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?" Forbes asked in the article. Despite the magazine's downgrade, Ms Jenner is hardly hurting. Forbes said she pocketed $340m from the sale of her business. It now estimates her net worth at "just under $900m". Forbes writers has previously accused other would-be billionaire of inflating their riches, including US Commerce Secretary Wilbur Ross and President Donald Trump.

https://www.bbc.com/news/business-52854345

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