Hailey Bieber has once again made headlines—not for her modeling or her high-profile marriage to pop superstar Justin Bieber, but for a business move that cements her as a major force in the beauty industry. On May 28, 2025, e.l.f. Beauty, the popular drugstore cosmetics giant, announced its acquisition of Hailey Bieber’s skincare brand, Rhode, in a deal valued at up to $1 billion. This landmark agreement marks one of the largest celebrity beauty brand acquisitions in recent years and signals a new era for both Rhode and e.l.f. Beauty.
Rapid Rise of Rhode
Launched in June 2022, Rhode was named after Hailey’s middle name and quickly captured the attention of Gen Z and millennials with its minimalist, skin-focused philosophy. The brand’s product range—featuring viral hits like the Peptide Lip Treatment, cleansers, moisturizers, and pocket blushes—found instant success, thanks in part to Hailey’s massive social media influence and clever marketing strategies. Rhode’s focus on “one of everything really good,” as Bieber described it, resonated with consumers seeking simplicity and efficacy in their skincare routines.
In less than three years, Rhode achieved over $200 million in net sales in the year leading up to the acquisition, a testament to both the brand’s cult status and its smart business execution. The company’s direct-to-consumer approach, combined with viral marketing and product innovation, helped Rhode stand out in a crowded market.
The Billion-Dollar Deal
The acquisition deal is structured with e.l.f. Beauty paying $800 million at closing—a mix of cash and stock—plus an additional $200 million in potential earnout payments based on Rhode’s performance over the next three years. This brings the total possible value of the deal to a staggering $1 billion, making Hailey Bieber one of the youngest self-made billionaires in the beauty industry.
e.l.f. Beauty, known for its accessible and affordable products, sees the acquisition as a strategic move to diversify its portfolio and gain a foothold in the prestige beauty sector. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible,” said e.l.f. Beauty Chairman and CEO Tarang Amin. “We are excited by Rhode’s ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth”.
Hailey Bieber’s Continued Leadership
Despite the sale, Hailey Bieber is not stepping away from the brand she built. She will remain as Chief Creative Officer and Head of Innovation for Rhode, and will also serve as a strategic advisor to e.l.f. Beauty. In her announcement on Instagram, Hailey expressed excitement about the partnership, stating, “I always had big dreams for the company, and the most important thing to me is to keep bringing Rhode to more spaces, places, and faces globally. This next chapter is going to be even more incredible together!”
Her husband, Justin Bieber, joined in celebrating the milestone, sharing her announcement and congratulating her on social media. Hailey also thanked her Rhode team and the loyal community of fans who helped propel the brand’s rapid growth.
What’s Next for Rhode?
With the backing of e.l.f. Beauty, Rhode is poised for significant expansion. The brand, which previously sold exclusively online and through limited pop-ups, will soon be available in Sephora stores across North America and the UK. This move is expected to dramatically increase Rhode’s reach and solidify its position in the global beauty market.
e.l.f. Beauty’s acquisition of Rhode is part of a broader trend of celebrity-founded beauty brands achieving massive commercial success. In 2023 alone, celebrity beauty lines generated over $1 billion in total sales, according to industry reports. Hailey Bieber now joins the ranks of other celebrity entrepreneurs who have turned their personal brands into lucrative business empires.
Industry Impact
For e.l.f. Beauty, the Rhode acquisition is its largest to date and follows its 2023 purchase of skincare brand Natrium for $355 million. The deal comes at a time when e.l.f. is seeking to counter slowing demand in the mass-market cosmetics sector and appeal to younger, trend-driven consumers. Rhode’s viral appeal and celebrity cachet offer a fresh avenue for growth.
The acquisition is expected to close in the second quarter of fiscal 2026, pending regulatory approvals. Legal and financial advisors for the deal include industry heavyweights such as Latham & Watkins LLP, J.P. Morgan Securities LLC, and Skadden, Arps, Slate, Meagher & Flom LLP.
Conclusion
Hailey Bieber’s sale of Rhode to e.l.f. Beauty for up to $1 billion is a testament to her vision, business acumen, and the power of social media-driven branding. As she continues to lead Rhode into its next phase, the beauty world will be watching closely to see how this high-profile partnership shapes the future of skincare and cosmetics. For Hailey, what began as a passion project has blossomed into a billion-dollar legacy—one that’s only just getting started.
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