Selena Gomez, the actor, singer, and entrepreneur behind Rare Beauty, is looking into investment or acquisition offers for the company, according to a new report.
Rare Beauty, which is reportedly worth $2 billion, appears to be in private talks with bankers who are interested in investing or acquiring it, Bloomberg learned through “people familiar with the matter.” Gomez would still be involved with the business and has hired advisers to weigh offers from different firms, per the report.
Kylie Jenner and Rihanna became billionaires through their beauty lines, with Forbes estimating that $1.4 billion of Rihanna’s $1.7 billion net worth comes from Fenty Beauty. A November 2019 deal placed Kylie Cosmetics at a $1.2 billion valuation and placed Jenner’s net worth over a billion dollars at the time.
Selena Gomez celebrates the launch of Rare Beauty’s Kind Words Matte Lipstick and Liner Collection at Santa Monica Proper Hotel on June 29, 2022 in Santa Monica, California. (Photo by Presley Ann/Getty Images for Rare Beauty)
Business of Fashion reports that Rare hit more than $400 million in net sales in the 12 months ending in February of 2024, placing its valuation at $2 billion. All individual makeup, body care, and brushes from Rare Beauty are $30 and under.
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One product from Rare, a liquid blush, went viral on TikTok in 2022 and brought in $70 million in revenue that year. The company’s bestsellers, according to a ranking on its site, also include tinted lip oil and matte lipstick.
However, celebrity status is no guarantee of success in the beauty industry — Kristen Bell and Eva Mendes had to discontinue their product lines after disappointing financial results.
A recent market research report from NIQ shows that celebrity beauty brands have skyrocketed in sales, from $691.5 billion in 2022 to $1,091.1 billion last year. The report showed that successful celebrity brands have compelling backstories and connect with their consumer base.
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“People are looking for performance and value in their products, which Rare does really well,” Sable Yong, a beauty writer based in New York, told Bloomberg last year. “Yes, it’s cute. Yes, Selena Gomez is the founder. But even if she wasn’t in the picture, they’re well-formulated products that perform really well at a fairly attainable price point.”
The success of Rare Beauty reportedly has catapulted Gomez’s net worth from $95 million in 2022 to an estimated $800 million in 2024.