Selena Gomez is reportedly in the process of exploring a sale of her $2 billion cosmetics company.
Gomez, the actor and singer whose credits include Disney’s “Wizards of Waverly Place,” “Spring Breakers” and “Neighbors 2: Sorority Rising,” has hired advisers to solicit offers for her company, Rare Beauty, according to Bloomberg News.
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.
Rare Beauty, which boasts a $2 billion valuation, is considered by The Business of Fashion news site to be one of the “most sought-after M&A 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, Ariana Grande and Lady Gaga have struggled to duplicate that same success.
Last July, Bloomberg News reported that Rare Beauty generated around $70 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 1% of Rare’s sales toward an in-house fund that raises awareness for mental health.
The singer’s business portfolio also includes Wondermind, a startup focused on improving mental health. In 2022, the company was valued at$100 million.
Gomez is also executive producer for several shows on Netflix and HBO Max. She also has brand partnership deals with Puma.
The Post has sought comment from Rare Beauty and Gomez.
Credit: Source link
