Selena Gomez, the actress, singer and entrepreneur behind Rare Beauty, is exploring investment or acquisition offers for the company, according to a new report.
Rare Beauty, reportedly worth $2 billion, appears to be in private talks with bankers interested in investing or acquiring it, Bloomberg learned through “people familiar with the subject”. Gomez is still involved in the business and has hired consultants to evaluate offers from several companies, according to the report.
Kylie Jenner and Rihanna have become billionaires thanks to 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 at over $1 billion 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)
Fashion business reports that Rare achieved more than $400 million in net sales in the 12 months ended February 2024, bringing its valuation to $2 billion. All individual makeup, body care and brushes from Rare Beauty are $30 and under.
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A product from Rare, a liquid blush, went viral on TikTok in 2022 and generated $70 million in revenue that year. Among the company’s bestsellers, according to the ranking published on its website, are also the colored lip oil and the matte lipstick.
A recent market research report from NIQ shows that sales of celebrity beauty brands have skyrocketed, from $691.5 billion in 2022 to $1,091.1 billion last year. The report demonstrated that successful celebrity brands have compelling stories 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 New York-based beauty writer, told Bloomberg last year. “Yes, it’s nice. Yes, Selena Gomez is the founder. But even if she wasn’t in the picture, they are well-formulated products that work really well at a fairly attainable price.”
The success of Rare Beauty has reportedly catapulted Gomez’s net worth from $95 million in 2022 to around $800 million in 2024.