You can be on Entrepreneur’s cover!

Is Selena Gomez the Next Beauty Billionaire? Rare Beauty, Worth Around $2 Billion, Is Reportedly Up for Sale One product, a liquid blush, went viral on TikTok in 2022 and brought in $70 million in revenue that year alone.

By Sherin Shibu

Key Takeaways

  • Selena Gomez founded Rare Beauty in 2020.
  • Reports indicate that Rare Beauty is in private talks with firms looking to invest or acquire it.
entrepreneur daily

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.

Related: Why Selena Gomez Is Cofounding a Mental Health Media Company

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.

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.

Related: Mental Health Startup Wondermind Reaches Milestone $100M Valuation After Series A Funding

"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.

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Resumes & Interviewing

Build a Better Resume with This $35 Subscription

AI Resume Builder promises to help you apply to jobs twice as fast.

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.

Marketing

I Got Over 225,000 Views in Just 3 Months With Short-Form Video — Here's Why It's the New Era of Marketing

Thanks to our new short-form video content strategy, we've amassed over 225,000 video views in just three months. Learn how to increase brand awareness through short-form video content.

Business News

Samsung Makes 6 Day Workweeks Mandatory for Executives as the Company Enters 'Emergency Mode'

Samsung said its performance "fell short of expectations" last year. Now executives are required to work weekends.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Leadership

You Won't Have a Strong Leadership Presence Until You Master These 5 Attributes

If you are a poor leader internally, you will be a poor leader externally.