Michael Kors: a high-end fashion company. Versace: a higher end fashion company. Two companies that are very well-known in the fashion industry. So, the news that is shocking us all today– Michael Kors is buying the Versace fashion house for $2.1 billion.

It was quite a surprise to the world when there were rumors about the buying on Monday, September 24th. After the drama on social media, Michael Kors and Donatella Versace decided to publicly announce this eye-opening purchase.

Donatella Versace took charge of Versace after her brother passed away over twenty years ago. At the age of 63, she believes that now is the right time for the two fashion houses to combine. With the two joining, the two companies are still excited to be in the modern and fashion worlds.

Tons and tons of cash is not the only thing the Versace family is receiving–shares are included. Michael Kors is giving them a total of 150 million euros of shares in the two merged companies. Versace is gaining money for the company and shares in the new one– a win-win situation.

In addition to a change in ownership of the company, the two together will have a changed name. Kors released that the name will be Capri Holdings Limited. Mallory Moorman, a student here at Lakewood High School stated, “I dislike the new name of the joined companies. I think they could have come up with something better or not changed the names at all”.

Kors and Versace are expecting the combined companies to grow. The predicted growth for Versace is around two billion dollars, which is better than previous growth.The net worth of Versace alone is only $800 million, whereas Michael Kors is now down to $600 million.