How billionaire Selena Gomez earns and spends her fortune

Rare beauty is the main driver of Gomez’s wealth.

Gomez may be best known as an actor and musician, but the bulk of her fortune — more than 80 percent, according to Bloomberg estimates — comes from her beauty brand, Rare Beauty. The publication assumes that Gomez owns a conservative 51 percent of the business — the brand has only two known investors — which it values ​​at more than $2 billion, confirming an earlier report by Business of Fashion that pegged its value at a number similar.

While an analysis of reported revenues — between $300 million and $350 million — and current price-to-sales ratios for public beauty companies like Coty and L’Oréal might put the brand value slightly lower, the momentum company and his room. for growth—currently only sold at Sephora and online—enhance its appeal.

“I wasn’t surprised by the price because it’s a healthy brand with beloved products,” beauty industry expert Anncy Rowe told Business Insider earlier this year in response to the $2 billion figure.

Launched in 2020, the cosmetics line has reached heights that few other famous brands have. While many struggling A-list companies lean too heavily on fan talent, Rare Beauty has become a household name in its own right — akin to Rihanna’s Fenty Beauty — that’s growing beyond just “Selenators.”

The brand’s success was discussed on the earnings calls of retailer Kohl’s, where it’s available at its Sephora displays, and manufacturer Elementis, and has several products among Sephora’s best sellers, including cult favorites like liquid blush.

The brand was particularly successful on social media, which Gomez also dominated. She has been one of the most followed people on Instagram for years.

Rare Beauty’s online popularity “gives an indication of its value on the street today,” beauty industry veteran Jeffrey Ten said earlier this year. “Makeup brands are driven by social media. What appears on social media is sold in stores – it’s black and white.”

Earlier this year, reports surfaced that Gomez was looking to sell the brand — and officially cash in on the value it accrued while the products are still hot.