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Developing: Selena Gomez Reportedly Exploring Sale or IPO of Billion Rare Beauty Cosmetics Company

selena gomez rare beauty

Selena Gomez is reportedly considering selling or listing shares in Rare Beauty. Photo Credit: Chris Benson

Who says Rihanna’s the only artist with a multibillion-dollar cosmetics industry presence? Selena Gomez is reportedly considering selling or IPOing her Rare Beauty business, which is valued at $2 billion.

Selena Gomez’s possible sale ambitions came to light in a recent Bloomberg piece as well as a separate article from The Business of Fashion (and specifically the publication’s Business of Beauty division). At the time of this writing, the 31-year-old and her team hadn’t publicly addressed the matter.

But Gomez launched Rare in 2020, and according to its website, the brand offers products including “hydrating body lotion” ($28 for an 8.45-ounce container), “comfy sweatpants” ($40), and “tinted lip oil” ($20).

These and a variety of similar items have evidently proven popular. Per Business of Beauty, which cited anonymous sources with knowledge of the matter, Rare’s net sales topped $400 million during the 12 months ended February of 2024.

According to the same outlet, Rare caters to a decidedly global customer base, with “nearly half” of its sales “coming from international markets.”

Returning to the sale rumors, Bloomberg indicated that Gomez and her team could be looking to cash out of the business at the $2 billion valuation identified by Business of Beauty.

Advisers have reportedly been brought aboard to explore the possible sale or an investment, and Gomez reportedly intends to remain involved with the company even if a deal wraps.

Taking those points a step further, Business of Beauty elaborated that an IPO or some sort of private equity partnership are also on the table for Rare, with both Raymond James and Goldman Sachs providing guidance. At the earliest, the potential sale or adjacent transaction could come to fruition in 2025, the publication relayed.

Needless to say, it’ll be worth keeping an eye out for related developments moving forward – besides monitoring the overarching trend of celebrities using their existing reach to jumpstart businesses.

Artists haven’t turned in exclusively positive results when venturing into the beauty and cosmetics arena – see Jay-Z’s ugly cologne dispute and reported obstacles involving Ariana Grande’s r.e.m. beauty, to name a couple.

But Rare and Rihanna’s initially highlighted Fenty Beauty have proven runaway financial successes. Moreover, artists are looking to make waves in different consumer spheres as well – including beverages, which, of course, cost relatively little to make and can fetch large prices.

The long list of acts and companies with interests in beverage brands (alcoholic and otherwise) now includes but certainly isn’t limited to Ellie Goulding, Moneybagg Yo, Katy Perry, Jay-Z, and Live Nation. Goulding sold a “significant minority stake” in her business, Served, to Heineken in September of 2023.

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