Model and entrepreneur Hailey Bieber has struck a massive deal to sell her beauty and skincare brand Rhode to e.l.f. Beauty, a leading U.S.-based cosmetics company, in a transaction valued at up to $1 billion. This major acquisition highlights the rising power of celebrity-founded beauty brands and the enormous growth potential in the skincare market.
Rhode’s Meteoric Rise Since Launch
Founded in June 2022, Rhode quickly made waves in the beauty industry. The brand is named after Hailey Bieber’s middle name and has carved a niche with its minimalistic, skin-first product line. From its Peptide Glazing Fluid to the viral Peptide Lip Treatment and pocket-sized blushes, Rhode’s products have become cult favorites—especially among Gen Z and millennial consumers.
According to e.l.f. Beauty’s official press release, Rhode generated over $212 million in net sales for the 12-month period ending in March 2025, a striking feat for a brand that’s barely three years old. Analysts attribute much of its success to savvy social media marketing, particularly on platforms like TikTok and Instagram, where influencer content and product virality helped build a loyal customer base.
In fact, a NielsenIQ report confirmed that Rhode saw the highest year-over-year growth in earned media value in the skincare sector for 2024—a 367% increase that helped cement its place as a top player in the premium beauty category.
Details of the Billion-Dollar Deal
The acquisition deal announced by e.l.f. Beauty—short for “eyes, lips, face”—includes an upfront payment of $800 million, composed of both cash and stock. An additional $200 million payout is tied to Rhode achieving specific sales and performance milestones in the coming years, potentially bringing the total deal value to a staggering $1 billion.
According to a detailed breakdown by The Wall Street Journal, e.l.f. will pay $600 million in cash and $200 million in stock initially. The acquisition is expected to officially close later in 2025, pending regulatory approval and customary closing conditions.
This strategic move is not just a financial transaction but a bold business play. e.l.f. is expanding beyond its traditional mass-market focus to embrace more prestige-tier skincare and beauty offerings, leveraging Rhode’s brand equity, design, and influencer-driven consumer base.
Hailey Bieber to Stay On as Chief Creative Officer
Hailey Bieber will remain deeply involved with the brand she helped build. As part of the agreement, she will continue serving as Chief Creative Officer of Rhode and will also take on a role as Head of Innovation. She’ll lead new product development, creative direction, and marketing strategy alongside her executive team, ensuring the brand retains its original identity under the new ownership.
“This partnership with e.l.f. marks the next chapter in Rhode’s journey,” Bieber said in a statement on social media and via e.l.f.’s corporate release. “We’ve built something incredibly special, and now we have the chance to bring our vision to a global scale. I’m thrilled to continue working with the team and building out new product innovations that our community will love.”
e.l.f. CEO Tarang Amin echoed her enthusiasm: “Rhode is a beautiful, high-growth brand that aligns perfectly with our mission to make the best of beauty accessible to every eye, lip, face, and skin concern.”
Expansion Plans: Sephora, International Markets, and Beyond
The acquisition comes as Rhode prepares for a major retail expansion. The brand plans to enter Sephora stores in both the United States and the United Kingdom later in 2025. This retail push is expected to significantly boost distribution, visibility, and sales, helping the brand move beyond its largely direct-to-consumer and online origins.
e.l.f. also plans to utilize its global supply chain infrastructure, especially in Europe and Asia, to help Rhode mitigate international tariff risks and reduce over-reliance on Chinese manufacturing. According to industry analysts, this aligns with e.l.f.’s broader goal of diversifying its product portfolio and increasing its presence in prestige skincare—a market expected to exceed $30 billion globally by 2027, according to Statista.
The Celebrity Beauty Boom Continues
Hailey Bieber’s success with Rhode joins a growing list of celebrity-founded beauty ventures that have seen explosive commercial success. In recent years:
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Rihanna’s Fenty Beauty, launched in partnership with LVMH, was valued at nearly $3 billion in 2023.
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Kylie Jenner’s Kylie Cosmetics was sold in part to Coty in 2020 for $600 million.
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Selena Gomez’s Rare Beauty reportedly made over $70 million in revenue in 2023 and earned her a spot on Bloomberg’s billionaire index.
According to NielsenIQ, celebrity beauty brands collectively generated over $1 billion in revenue during 2023 alone, proving that the blend of star power, product quality, and digital marketing can be a winning formula.
Hailey Bieber, daughter of actor Stephen Baldwin and niece to actors Alec, William, and Daniel Baldwin, has successfully transitioned from fashion model to entrepreneur. Her beauty empire now stands as one of the fastest-growing skincare brands in the world.
What’s Next for Rhode?
With e.l.f. Beauty’s infrastructure, capital, and marketing muscle now backing it, Rhode is poised for what the company calls “rocketship growth.” Analysts expect an expanded product line, new makeup and skincare innovations, and wider global distribution in both online and offline retail channels.
For Hailey Bieber, who recently became a mother, this deal marks a monumental achievement in both her personal and professional journey. “In my wildest dreams, it’s already gone beyond what I would’ve hoped for,” she told Vogue in an interview conducted before the acquisition was made public.
As the deal moves toward completion in the second half of 2025, industry observers will be watching closely to see how Rhode continues to evolve—and whether this move will help e.l.f. Beauty become a powerhouse not just in drugstore makeup aisles, but in prestige skincare worldwide.
