Contrary to reports of her 10-figure status, Forbes estimates the Disney star turned business mogul’s fortune to be short of $1 billion. Here’s why.
Over the weekend, Forbes published a report about financial issues at Wondermind, a mental health startup cofounded by actress and business mogul Selena Gomez, which failed to pay its employees, freelancers and vendors in recent weeks. Then on Monday, a source with knowledge of the situation confirmed that nine employees were laid off and given two weeks severance, leaving just four remaining.
Forbes’ reporting revealed that the startup, which Gomez founded in 2021 with her mom Mandy Teefey and newsletter entrepreneur Daniella Pierson (who left in 2023), owed tens of thousands of dollars – if not more – in outstanding debts, which the company says it has since repaid. In a recorded conversation shared with Forbes, Teefey, who is also Wondermind’s CEO, told employees that she’d taken out a loan against her own home to keep the struggling startup afloat.
Not surprisingly, the news of trouble at Wondermind set off a heated debate online: How much can Gomez really be worth, if a startup she cofounded can’t pay its workers or its bills?
In September 2024, Bloomberg reported Gomez’ net worth to be $1.3 billion thanks to her makeup line, Rare Beauty, which was founded in 2019 and launched in 2020. Multiple media outlets have since called the 32-year-old Gomez a billionaire as well.
Based on Forbes’ reporting, Gomez is very wealthy, but estimated to be worth roughly $700 million. This figure still ranks the former Disney Star among the wealthiest self-made women entrepreneurs in the country – and one of the richest celebrities – but the breakdown of her fortune helps explain why she may be somewhat limited in how much money she can or is willing to sink into Wondermind.
Gomez’s biggest asset is her estimated 51% stake in Rare Beauty. The only other known investors in Rare Beauty are private equity firm New Theory Ventures, founded by Nikki Eslami, and Rare Beauty’s CEO, Scott Friedman. CEO of the company since its founding, Friedman previously led fellow self-made woman list member Toni Ko’s NYX Cosmetics until 2017, when he helped her sell it to L’Oréal for $500 million. A 2021 filing with the city of Southaven, Mississippi, lists Gomez’s holding companies, Eslami and Friedman as partners in Rare Beauty LLC. It also names Julius Salerno, cofounder of Eslami’s former hair extensions company Bellami, though it is unclear whether he holds a stake. (Eslami and Friedman didn’t reply to requests for comment; Salerno couldn’t be reached for comment.)
The cosmetics firm sells its offerings exclusively at Sephora and through the Rare Beauty website. It became a hit in large part due to the popularity of its liquid blushes. In a California state filing, Rare Beauty reported $367 million in revenue in 2023, the most recent year for which the information is available. Overall, Forbes values the company at about $1.3 billion based on feedback from beauty industry analysts, who recommended competitive multiples to take into account the company’s growth in 2024 but did note that valuations have fallen in recent months.
“The market condition right now is exerting a sort of downward pressure on valuation,” notes Morningstar analyst Dan Su. “And honestly, makeup is a category in my view, where the entry barrier is relatively low. So there’s a lot of competition.”
Outside of Rare Beauty, Gomez has reaped an estimated $90 million in gross earnings over the years from her TV shows, music, brand endorsements and tours. That includes a reported $30 million she got from her 2017 collaboration with Puma and an estimated $24 million for her earnings from Hulu’s Emmy-winning comedy series “Only Murders in the Building,” which she executive produces and stars in, alongside Steve Martin and Martin Short. She also had a prominent role in the Oscar-nominated film “Emilia Pérez,” for which she was nominated for a Golden Globe for best supporting actress in a motion picture. And she executive produced the controversial hit Netflix series “13 Reasons Why.”
Rare Beauty’s most popular product is its “Soft Pinch” blush.
© 2023 Bloomberg Finance LP
In 2020, Gomez paid nearly $5 million for her home in Encino, where she filmed the first three seasons of her cooking show, “Selena + Chef.” Most recently, she bought a $35 million Beverly Hills property with fiancé and music producer Benny Blanco. Representatives for Gomez declined to comment on Forbes’ breakdown of her net worth.
Gomez, now 32, began her career at age 10 when she was cast to play Gianna on the series “Barney and Friends” from 2002 to 2004. Her big break came three years later, in 2007, when she landed the lead role as Alex Russo in Disney Channel’s “Wizards of Waverly Place.”
Like many former Disney stars, Gomez pivoted to music. She released her first album in 2008 and has released six more since then. Her most recent is a collaboration with Blanco, dropped in March. Still, Gomez, who hasn’t done a music tour since 2016, has not pulled in as much cash as some other wealthy entertainers–such as Taylor Swift and Beyoncé–who have pocketed hundreds of millions of dollars over the years, specifically from touring, according to Forbes’ estimates.
It’s unclear how much of her own money Gomez has put into Wondermind over the years. In 2022, a year after its launch, the company raised $5 million at a $100 million valuation in a Series A funding round led by Serena Williams’ Serena Ventures, with participation from the family office of real estate billionaire Barry Sternlicht. (Sequoia Capital and Lightspeed Ventures were also listed in PitchBook and other media reports as investors, but on Monday both firms told Forbes that was not accurate).
Wondermind has struggled to secure additional outside funding in the years since. According to one former employee, who spoke on the condition of anonymity, Teefey told this person that she and Gomez had put $8 million of their own money into the company, as of mid-2023. More recently Teefey told employees that the company was close to closing a Series B funding round, but that has not come through.
It all came to a head on March 31, when employees did not get their paycheck and received an email saying that their health benefits had been terminated two weeks earlier. The company missed payroll again on April 30, and at a May 8 staff meeting, Teefey said she had taken out a loan against her home to help cover debts. All of that led to the layoffs on Monday, which a spokesperson for Wondermind said had “nothing to do with” multiple employees speaking to Forbes previously about the company’s financial struggles.
Meanwhile Gomez, who some employees say was barely involved with the mental health startup, is keeping up with her own busy schedule. She has been filming the fifth season of “Only Murders in the Building” in New York City and focusing on Rare Beauty. On May 2, Gomez, who has 420 million Instagram followers, posted that she surprised attendees after showing up at Rare Beauty’s Mental Health Summit held in Los Angeles.
While she’s still very much involved in the makeup company, industry experts predict its success will go beyond Gomez’s celebrity power. Says Ashleigh Barker, head of beauty and personal care at investment banking advisory firm Lincoln International:
“The fact that it’s not the Selena Gomez beauty brand, that it’s Rare Beauty and stands for something that very much aligns with Selena and her narrative and messaging to her followers, but also extends well beyond her as an individual… That the brand can stand on its own two feet without her at the helm, I think is what helps create the staying power.”
As for Gomez, there is no doubt after 22 years in the business and success in so many areas, including a huge, loyal fan base, that she likely has other chapters ahead.
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