Kim Kardashian seeking to buy back 'SKKN BY KIM' stake from Coty: Report

Celebrity influencer Kim Kardashian is reportedly in talks to buy back her stake in her skincare line from Coty Inc. Yahoo Finance Live takes a look at Kardashian's potential motivations behind the deal.

Video transcript

- --Kim Kardashian, and she is in the news today because she reportedly wants to buy back the minority stake that Coty purchased in her beauty brand about three years ago. Now, Coty completed a $200 million purchase for a 20% stake in Kardashian's company, formerly known as KKW Beauty, in January of 2021.

Since then, Kardashian has rebranded to SKKN BY KIM, a luxury skincare line, "The Journal" saying that she wants to expand the company into other beauty categories, which is one of the reasons why she wants to repurchase this stake.

Also Jefferies is reporting or saying in a note following this report that it probably would sell for less than what Coty bought it for. So in a sense, Kardashian could buy it cheaper.

- Yeah, so is she seeing a kind of a deal here like saying that, you know what--

- A new deal, yeah.

- --I sold high, I can buy back low. Because I wasn't sure why she wanted to get that money or why she wanted to spend the money to give it back to Coty. And maybe there was a deal where Coty could kind of block her expansion plans. I'm not sure. Because she wanted to expand the skincare or the beauty product line.

So I'm not sure what's going on there, but I thought it was kind of interesting that she wants to go back and give them back the money to get that piece.

- Because it would be the most billionaire thing ever-- right, Pras-- if I went someone, the business I created 20% of it for three years, they pay me, and then I buy it back for cheaper, and I actually made money on the deal while Coty helped me build up my brand and-- like, just come on.

- Yeah.

- They always win. That's my takeaway from this is they always win. If that's actually what happens and Kim Kardashian is able to buy this back for less money, oh, beautiful. You take that deal 10 times out of 10.

- Shocking to me. I mean, I'm not sure. But I mean, also-- [INAUDIBLE] mentioned this-- the sky partners for VC fund or private equity fund staffing up hardcore. No purchases yet. Is this the first purchase?

- That is a very good point and something I actually thought of. Like, who knows? Maybe that is what she's planning. And Kardashian, look, she's a very shrewd businesswoman. She knows what she's doing. She has a lot of really successful brands.

SKIMS It's a very popular one that my friends love. Really I know every single female friend of mine has something that is from the SKIMS line. And that has a lot of really high valuation.

She's a billionaire in her own right. She has the VC fund. Also "The Kardashians" which recently launched on HULU. That's entering a few seasons there. Those are residual income. So she's doing well making a lot of money, so there has to be a reason for this.

- Kim Kardashian, a queen, business operator. I would love to get her take on how she runs a meeting.