In a landmark deal shaking up the beauty industry, Hailey Bieber has sold her skincare and makeup brand, Rhode, to e.l.f. Beauty for a staggering $1 billion. The acquisition, announced on May 28, 2025, marks one of the most significant beauty deals in recent years, cementing Bieber’s status as a formidable entrepreneur. Rhode, launched in 2022, has rapidly risen to prominence, driven by Bieber’s viral “glazed donut skin” trend and a minimalist, science-backed approach to skincare. The brand, named after Bieber’s middle name, reported $212 million in net sales for the 12 months ending March 31, 2025, a remarkable feat for a direct-to-consumer company with just 10 products.
The deal includes a $600 million cash payment, $200 million in e.l.f. Beauty shares, and up to $200 million contingent on future performance, reflecting confidence in Rhode’s growth potential. e.l.f. Beauty, known for its affordable cosmetics and 23 consecutive quarters of growth, sees Rhode as a strategic addition to its portfolio, which includes e.l.f. Cosmetics, Keys Soulcare, Naturium, and Well People. The acquisition allows e.l.f. to tap into a higher-income consumer base, as Rhode’s products, priced in the high $20s, contrast with e.l.f.’s budget-friendly $6.50 average. Tarang Amin, e.l.f.’s chairman and CEO, praised Rhode’s disruptive energy, noting its alignment with e.l.f.’s mission to make premium beauty accessible.
Bieber, who will remain as chief creative officer and head of innovation, expressed excitement about the partnership, emphasizing e.l.f.’s track record of empowering founders. Her expanded role will also see her advising e.l.f. Beauty, potentially influencing its broader portfolio. Rhode’s rapid success, including a 367% year-over-year increase in Earned Media Value in 2024, underscores Bieber’s savvy use of her 50 million Instagram followers and strategic influencer marketing. The brand’s upcoming launch in Sephora stores across the US, Canada, and the UK this fall is expected to further boost its global reach, with plans to expand into markets like Brazil.
Despite its triumphs, Rhode has faced challenges. In April 2025, reports surfaced that Bieber was exploring a sale, with JPMorgan Chase and Moelis advising on a potential $1 billion-plus valuation. Earlier criticism of Rhode’s lip products, with some customers complaining of an unpleasant smell, did little to slow its momentum. Bieber’s hands-on approach—collaborating with cosmetic chemists and dermatologists during the 2020 pandemic to develop products—has built trust and transparency with consumers. Her tutorials on platforms like TikTok have further fueled engagement, making Rhode a Gen-Z favorite.
The acquisition comes amid personal milestones for Bieber, who welcomed her son, Jack Blues, with husband Justin Bieber in August 2024. While navigating rumors of marital strain, she has remained focused on her business empire. Industry experts see the deal as a testament to the power of celebrity-driven brands, with Rhode joining the ranks of other high-profile ventures. As e.l.f. Beauty integrates Rhode, the partnership promises to redefine prestige skincare, blending innovation with accessibility. For Bieber, this billion-dollar deal is not an end but a bold new chapter in her entrepreneurial journey.
