Selena Gomez is reportedly considering selling Rare Beauty, her prominent cosmetics brand known for its quality and social media dominance, after being valued at £1.58 billion (USD 2 billion).

According to Business of Fashion, Selena Gomez is weighing offers for her beauty company. Following in the footsteps of singer-turned-beauty mogul Rihanna, Selena Gomez launched Rare Beauty in 2020. The brand quickly gained a loyal following as its liquid blush gained attention from beauty enthusiasts worldwide.

By February 2022, Rare Beauty made its debut in the United Kingdom, with British consumers embracing top-selling products such as the 4-in-1 Always An Optimist Setting Spray, Stay Vulnerable Melting Blush, and Perfect Strokes Universal Volumizing Mascara.

Many celebrities have ventured into the beauty industry, but not all have experienced the same success as Rare Beauty or Fenty Beauty. What sets Rare Beauty apart? Its stated mission is to empower individuals to embrace their uniqueness by redefining the meaning of beauty and promoting self-acceptance. The brand aims to create “a safe and welcoming space for beauty that is supported by mental health at every age, gender, sexuality, race, and physical or mental ability.”

Rare Beauty has garnered significant attention on Instagram and TikTok, with 7.1 million and 3.6 million followers, respectively. This reputation makes it appealing to industry giants like Coty, L’Oréal, or Estée Lauder, companies with significantly lower Earned Media Value (EMV). However, the financial details of Rare Beauty, including revenue figures, are not publicly disclosed, and representatives for Gomez and Rare Beauty declined to comment on media inquiries.

Business of Fashion estimates that the company generated $350 million in net revenue last year, while Fast Company estimates it at $300 million. With valuation multiples ranging from 1.8 times (Coty) to 5.8 times (L’Oréal) of revenue for publicly traded beauty companies, the $2 billion valuation is still a plausible consideration. Gomez’s stake in the company is unknown but could be substantial. The business has no parent company or corporate partners. Apart from Gomez, Scott Friedman, the CEO of Rare Beauty, and Nikki Eslami, co-founder of VC firm New Theory Ventures, are recognized investors thus far.

Assuming a nine-figure payday, the value of any remaining stake in the company, a substantial windfall from years of performing, including her 2016 “Revival” tour, which grossed $35.6 million, and other revenue sources, Gomez’s net worth could reach $1 billion, putting her on the path to becoming the next female billionaire.

Four years after its launch, Selena Gomez remains the most valuable asset of Rare Beauty. With 429 million followers on Instagram, she has been one of the platform’s most-followed individuals for a decade, and her “authentic, nuanced involvement” in Rare Beauty has made a difference. Will Selena Gomez truly hand over Rare Beauty to someone else, or does she have a different strategy in mind?