In a significant development, Forbes magazine has officially delisted reality TV sensation Kylie Jenner from its roster of billionaires, citing allegations of overinflated business valuations by her family.
Forbes had originally bestowed billionaire status upon the 22-year-old in March 2019, largely on the back of her wildly successful Kylie Cosmetics brand. However, recent revelations have led to her removal from this prestigious list.
The turning point arrived when Jenner divested a 51 percent stake in her cosmetics empire to beauty industry behemoth Coty in a high-profile deal worth $600 million, appraising the company’s value at $1.2 billion. Forbes contends that a meticulous review of the transaction’s fine print revealed that the business was «substantially smaller and less profitable» than previously represented.
Furthermore, Forbes raised eyebrows by insinuating potential irregularities in the Jenner family’s tax filings, stating that «(The) extraordinary measures taken by the Jenners exemplify the lengths to which some ultra-wealthy individuals go to project greater wealth.»
Forbes justifies its decision by citing new insights into the business and the market impact of the COVID-19 pandemic on beauty product sales. Consequently, they conclude that Kylie Jenner no longer qualifies as a billionaire, notwithstanding her substantial earnings, estimated to be approximately $340 million post-tax from the Coty transaction.
Nevertheless, Jenner’s financial standing remains formidable, with Forbes estimating her personal wealth to be just shy of $900 million.
In response to Forbes’ action, Kylie Jenner took to Twitter, asserting that the magazine had made «several inaccurate statements and unsupported assumptions» and vehemently denied any intent to manipulate her financial status. She emphatically stated, «I have never actively sought a specific title or engaged in deception in this matter. Period.»
