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​Selena Gomez’s $3 billion beauty move ​

The singer is reportedly looking to cash in on the beauty empire she founded in 2020.

Selena Gomez is reportedly in the process of exploring a sale of her US$2 billion ($3 billion) cosmetics company.

The actor and singer, whose credits include Disney’s Wizards of Waverly PlaceSpring Breakers and Neighbors 2: Sorority Rising, has hired advisers to solicit offers for her company, Rare Beauty, according to The New York Post.

The company has brought on bankers to weigh potential offers for the company, though the 31-year-old Gomez is likely to remain involved with the business even after a sale, it was reported.
 

Selena Gomez celebrates the launch of Rare Beauty's Soft Pinch Tinted Lip Oil Collection on March 29, 2023 in New York City. Picture: Cindy Ord/Getty Images/AFP
Selena Gomez celebrates the launch of Rare Beauty's Soft Pinch Tinted Lip Oil Collection on March 29, 2023 in New York City. Picture: Cindy Ord/Getty Images/AFP


Rare Beauty, which boasts a US$2 billion (A$3 billion) valuation, is considered by The Business of Fashion to be one of the “most sought-after [mergers and acquisitions] targets for 2024”.

Gomez founded the company in 2020.

She has been able to leverage her celebrity status and hundreds of millions of social media followers to sell mascara, liquid blush, lip oil, eye brightener and fragrance mist.

The star has staffed Rare with capable veterans in the beauty industry, including Joyce Kim, the chief product officer who previously served as an executive at L’Oreal’s Nyx Professional Makeup.

Rare has managed to get the word out about its products thanks to a robust online presence. The firm has millions of followers across all social media platforms, including Instagram and TikTok.

Being a showbiz celebrity is no guarantee that it will translate into success in the retail space.

While Gomez, Rihanna and Hailey Bieber have made considerable profit in beauty retail, others such as Kristen Bell and Ariana Grande have struggled to duplicate that same success.
 

Rare Beauty has been a huge success for Gomez.
Rare Beauty has been a huge success for Gomez.


Last July, Bloomberg News reported that Rare Beauty generated around US$70 million (A$107 million) in revenue in 2022.

Last summer, it was on pace to triple its sales for the year.

Gomez, who has been public about her personal struggles, pledged to donate one per cent of Rare’s sales toward an in-house fund that raises awareness for mental health.

The singer’s business portfolio also includes Wondermind, a start-up focused on improving mental health.

In 2022, the company was valued at US$100 million (A$153 million).

Gomez is also executive producer for several shows on Netflix and HBO Max.

She also has brand partnership deals with Puma.

The New York Post has sought comment from Rare Beauty and Gomez.

This article was first published by The New York Post and has been reproduced with permission.

Author: Editors Desk, Ariel Zilber

Source: News Corp Australia Network:

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