More billion-dollar beauty? Hailey Bieber, Selena Gomez eye exits
Hailey Bieber and Selena Gomez are reportedly considering exits from their respective beauty businesses, Rhode and Rare Beauty, potentially fetching valuations of $1 billion and $2 billion.
Behind the scenes, heavyweight advisors like JP Morgan, Moelis, and unnamed consultants are steering these talks. If deals materialize, they could rank among the most high-profile celebrity beauty transactions to date.
Yet, the buzz raises a crucial question: Is this a sign of strategic maturity, or is a bubble about to burst?
“These brands were all founded around the same time and have now reached a phase where they either scale with institutional backing or risk plateauing,” says Mario Ortelli, managing partner at Ortelli &Co, a strategic M&A advisory boutique for luxury goods, and former global head of luxury goods at Bernstein. “That’s why they are all on the market now.”
Indeed, the timing isn’t coincidental. The celebrity beauty boom, born during the pandemic and bolstered by social media virality, is now maturing. Many of these brands, including Rhode, launched in 2022, and Rare Beauty (2020), have outgrown their digitally native DTC beginnings. Their founders — flush with social capital — are now exploring capital gains.
Celebrity beauty brands: Riding high or overvalued?
Rare Beauty’s $2 billion valuation and Rhode’s $1 billion have sparked scrutiny. While product performance and consumer loyalty have helped justify rapid growth, analysts warn that frothy valuations may be partially propped up by hype.
“Striking while the iron is hot is a logical step,” says Zarina Kanji, managing director for UK and Europe at WPIC Marketing + Technologies. “With the unpredictable global economy so far in 2025, tapping out now could be a wise decision especially given the uncertainty with tariffs — it is no coincidence the brands tapped for exit are mostly from the U.S.”
Though, Kanji adds, “it’s hard to quantify the dollar value of ‘hype.’ Without the celebrity’s popularity, it’s unlikely these brands would have scaled this quickly.”
Hwee Chung, China beauty insight director at Kantar Worldpanel agrees: “Celebrity power is a key element behind celebrity beauty valuation as it allows the brand to be promoted globally without having to overly depend on traditional media and marketing activities.”
“They embody lifestyle, personality, and ‘vibe’ that consumers pursue, and fans buy in because of curiosity and parasocial connection,” she adds. “Such celebrity power is particularly important in the beginning stages of the brand lifecycle especially in this era of social media.”
Rare Beauty’s timing — launching in September 2020 amid pandemic anxiety — was pivotal. Gomez’s openness about her mental health, paired with charitable donations aiming to raise $100 million, resonated with Gen Z.
Rhode, meanwhile, cultivated wait-list-driven scarcity and launched with a minimalist ethos. A single viral drop — the “glazed doughnut” skin aesthetic — propelled the brand from indie darling to social media phenomenon. Rhode’s Lip Case, which integrates lip balm into an iPhone case, became a viral sensation and typifies how these brands blend novelty with marketing savvy.
Still, Ortelli cautions potential buyers to look beyond the social halo.
“The key is longevity,” he says. “These brands must move from celebrity-driven hype to true brand equity — through product performance, lifestyle communication, and a real customer base.”
By Lisa Nan
