BUSINESS INSIDER
Selena Gomez is officially a billionaire.
Gomez appeared for the first time on Bloomberg’s Billionaire Index on Friday when her net worth reached $1.3 billion. It’s been a long time coming for the 32-year-old, who got her first paycheck as a child actor in the 90s on “Barney & Friends.”
Now, Gomez is an entrepreneur with several revenue streams.
Here is how Gomez makes and spends her money.
Rare Beauty is the main factor in Gomez’s wealth.
Gomez may be best known as an actor and musician, but the bulk of her fortune — more than 80%, according to Bloomberg’s estimates —comes from her beauty brand, Rare Beauty. The publication assumes Gomez owns a conservative 51% of the business — the brand has only two known investors— which it values at over $2 billion, confirming an earlier report from the Business of Fashion, which pegged its value at a similar number.
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 may peg the value of the brand slightly lower, the momentum of the company and its room for growth — it’s currently only sold at Sephora and online — boost its appeal.
“I was not surprised by the price tag, as it’s a healthy brand with loved products,” Anncy Rowe, a beauty industry expert, told Business Insider earlier this year in response to the floated $2 billion figure.
Launched in 2020, the cosmetics line has reached heights that few other celebrity brands have. While many struggling A-list-backed companies lean too heavily on fans of the talent, Rare Beauty has become a known entity in itself — akin to Rihanna’s Fenty Beauty — growing beyond just “Selenators.”
The brand’s success has been discussed on the earnings calls of retailer Kohl’s, where it’s available at its Sephora displays, and manufacturer Elementis, and it has multiple products among Sephora’s best sellers, including cult favorites like a liquid blush.
The brand has been particularly successful on social media, which Gomez has also dominated. She’s 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,” Jeffrey Ten, a beauty industry veteran, told BI earlier this year. “Makeup brands are driven by social media. What goes on social media sells in the stores — it’s black and white.”
Earlier this year, reports swirled that Gomez was looking to sell the brand — and officially cash out on the value she has built while the products are still hot.
Gomez is a seasoned actor who launched a production company in 2007.
Audiences first met Gomez in 2002 when she joined the “Barney & Friends” cast as Gianna.
Her next big break came in 2007 when she played Alex Russo on the Disney Channel sitcom, “Wizards of Waverly Place,” which won two Emmy Awards and became a certified hit with young audiences.
Her status as a Disney Channel darling helped Gomez transition into larger projects, including the 2011 film “Monte Carlo.” She later starred in movies like “A Rainy Day in New York” and “Spring Breakers.”
Gomez has continued acting in several projects over the years, including the “Hotel Transylvania” film franchise that garnered over $1.3 billion across four films. Gomez snagged an executive producer credit for the fourth installment, but that wasn’t her first producer credit.
Gomez launched her own production company — July Moon Productions — in 2007. Under that company, she produced the Netflix series “13 Reasons Why” in 2017 and a cooking-based reality TV series titled “Selena + Chef” in 2020.
Most recently, Gomez has found success starring in “Only Murders in the Building” alongside Steve Martin and Martin Short.
Gomez became a chart-topping pop star in the 2000s.
As a child star, Gomez performed a handful of stand-alone singles for soundtracks but made her official music debut with Selena Gomez & the Scene in 2009. The band released three studio albums and some fairly successful singles, including “Love You Like a Love Song.”
Gomez released her first solo album, “Stars Dance,” in 2013. It became her first No. 1 album. She’s since released two more albums and numerous singles, including “Lose You to Love Me,” which peaked at No.1 on the Billboard Hot 100 chart.
Gomez has sold a total of 3.6 million albums and has “shifted more than 11.5 million album equivalent units” as of August 2023, according to Billboard.
The outlet reported that her best-selling song in the United States was “Love You Like a Love Song” at 2.8 million copies, while her most-streamed song was DJ Snake’s “Taki Taki” at 1.02 billion on-demand streams.
Touring has also lined Gomez’s pockets. She made more than $30 million in ticket sales for the 2016 Revival Tour, according to Bloomberg.
Gomez earned millions from brand deals with companies like Coach.
Gomez’s real-life star power translated to social media platforms like Instagram, where she became the most-followed user in 2016 with 103 million followers.
At the time, she had amassed more Instagram followers than all six Kardashian-Jenner siblings, Taylor Swift, Beyoncé, and Ariana Grande.
Her online influence made her the perfect candidate for big-name brand deals and sponsorships, which Bloomberg reported made up 6.9% of her wealth now.
Gomez earned a reported $10 million from a Coach deal in 2016, then stacked more money through a campaign with Louis Vuitton that same year.
Gomez signed a deal with Puma SE in 2016 that E! News reported was worth $30 million. She’s also inked deals with Coca-Cola, Verizon, and Pantene.
Gomez cofounded a media company called Wondermind.
Gomez is a vocal mental health advocate and has publicly discussed her struggles on many occasions.
The desire to create conversations around mental health inspired Gomez to launch the media platform “Wondermind.” She cofounded Wondermind with her mother, Mandy Teefey, and entrepreneur Daniella Pierson. People can visit the Wondermind website for mental health advice and content, including worksheets, podcasts, and mental health explainers.
Bloomberg reported that Wondermind makes up 2.6% of Gomez’s fortune now.
Gomez has invested in real estate with her wealth.
Gomez has invested millions into her real estate portfolio since 2011, according to House Beautiful.
The outlet reported that Gomez purchased her first home for $2 million in 2011 before selling it to rapper Iggy Azalea for $3.45 million three years later.
In 2014, Gomez upgraded to a $3.69 million Calabasas home that she sold to rapper French Montana two years later for $3.3 million.
House Beautiful reported that Gomez then purchased a 10,000-square-foot Texas mansion in 2015, but the exact price is unknown. She sold that home for $2.7 million in 2018.
Gomez bought her third California-based home in 2017 for $2.24 million, then sold it for $2.3 million three years later.
Her most recent real estate investment was the former home of singer Tom Petty, who died in 2017. Gomez acquired the Encino-based property for $4.9 million in 2020.
Gomez said in a 2023 Food Network video that she lived there with her grandparents.
“I live with my grandparents, so we are always in the kitchen, always cooking, and we have leftovers,” she said.
