A partnership via acquisition took place with this deal. The buyer Coty Inc known as the majority owner purchase 51% of the company from Kylie Jenner who now will be minority owner with 49%. Her leverage and business bookkeeping valued at 1.2 billion. The Coty Inc will run the day to day operation.
Kylie build the business through different strategies.
Industry niche fragrance and cosmetics.
Had a team to operate the business.
Running a business that size is enormous and get very technical daily.
Kylie objective from this transaction is not to be a CEO but build a brand and use her leverage to sell them off to investors.
She could have made more money long term keeping 100% ownership.
Instead she got paid $600 million cash today and will receive 49% net profit moving forward by just being a minority partner and focusing on other ventures.
Great acquisition deal in my books.
That’s Big Business!
#investors #global #macro - 2 minutes ago