Hailey Bieber’s beauty brand Rhode has just made headlines with one of the most significant deals in the beauty industry this year. On May 28, 2025, e.l.f. Beauty, a powerhouse in the budget cosmetics sector, announced its acquisition of Rhode for a staggering $1 billion. This landmark deal comes just three years after Hailey Bieber launched Rhode, underscoring the brand’s meteoric rise and the enduring power of celebrity-backed beauty ventures.
Rhode’s Billion-Dollar Leap: The Latest News
The acquisition of Hailey Bieber’s Rhode by e.l.f. Beauty is a defining moment for both brands. The deal, valued at $1 billion, is structured with $800 million paid upfront in a mix of cash and stock, and an additional $200 million earnout contingent on Rhode’s continued growth over the next three years. This is e.l.f. Beauty’s largest acquisition to date, eclipsing its previous $355 million purchase of skincare brand Naturium in 2023.
Rhode’s impressive performance played a crucial role in attracting e.l.f. Beauty. In its most recent fiscal year, which ended in March 2025, Rhode generated $212 million in net revenue. Earlier this year, the brand announced plans to expand its retail presence, with products set to appear in Sephora stores across North America and the UK. Despite its relatively modest lineup of just ten products, Rhode has become a cult favorite, known for its high-tech, everyday skincare and color cosmetics.
Hailey Bieber will remain at the helm as Rhode’s chief creative officer and head of innovation, ensuring her vision continues to shape the brand’s future. Her social media influence and direct engagement with fans have been instrumental in Rhode’s rapid ascent, with pop-up events drawing crowds and products consistently selling out online.
Why e.l.f. Beauty Wanted Rhode
The acquisition is more than just a financial transaction; it’s a strategic move that positions e.l.f. Beauty to capture a larger share of the premium beauty market while strengthening its connection with Gen Z consumers. Here’s why Rhode was such an attractive target:
- Gen-Z Appeal: Rhode’s core audience is young, tech-savvy, and highly engaged. The brand’s marketing relies on organic social buzz rather than traditional advertising, generating an estimated $50+ million in annual earned media value.
- Product Innovation: Rhode’s “skin first” philosophy and viral products, like the $18 Peptide Lip Treatment, have set trends and driven demand. The brand’s clean beauty approach aligns with current consumer preferences.
- Retail Expansion: Rhode’s entry into Sephora opens new prestige retail channels for e.l.f., which has traditionally focused on mass-market distribution.
- Diversified Portfolio: Adding Rhode’s premium products ($35–$60 range) allows e.l.f. to diversify beyond its core of affordable cosmetics, enhancing profitability and reducing risk.
Key Benefits of the Acquisition
| Benefit | Impact on e.l.f. Beauty |
|---|---|
| Access to Gen-Z audience | Expands market share |
| Entry into prestige retail | Increases brand visibility |
| Premium product offerings | Boosts profit margins |
| Social media-driven marketing | Reduces ad spend |
| Geographic supply chain | Mitigates tariff risk |
The Rhode Story: From Launch to Billion-Dollar Brand
Hailey Bieber launched Rhode in 2022 alongside business partners Michael and Lauren Ratner. The brand debuted with just three products, focusing on a direct-to-consumer model that quickly gained traction thanks to Bieber’s digital presence and influencer status. Rhode’s minimalist aesthetic, high-quality formulas, and accessible price points resonated with a new generation of beauty enthusiasts.
Over the next three years, Rhode expanded its lineup to ten products, including skincare essentials and color cosmetics. The brand’s viral success on platforms like TikTok, combined with pop-up events and limited-edition drops, fueled its cult status. Rhode’s ability to generate $212 million in sales without traditional advertising is a testament to the power of social media and authentic celebrity engagement.
What’s Next for Hailey Bieber and Rhode?
With the backing of e.l.f. Beauty, Rhode is poised for even greater growth. The brand’s upcoming launch in Sephora stores is expected to drive significant sales acceleration, and the earnout structure incentivizes continued performance and innovation. Hailey Bieber’s ongoing leadership ensures that Rhode’s identity and vision remain intact, even as it scales to new heights.
For e.l.f. Beauty, the acquisition is a strategic masterstroke, offering immediate upside and long-term potential. The company’s ability to blend mass-market muscle with premium, influencer-driven brands sets a new blueprint for success in the evolving beauty landscape.
Conclusion: The Future of Celebrity Beauty
Hailey Bieber’s sale of Rhode for $1 billion is more than a headline—it’s a signal that the era of celebrity beauty is far from over. Rhode’s journey from a startup to a billion-dollar brand in just three years demonstrates what’s possible when innovation, authenticity, and social media savvy converge. As Rhode enters its next chapter under e.l.f. Beauty, all eyes will be on how this partnership shapes the future of beauty for Gen Z and beyond.
Ready to experience Rhode’s cult-favorite products for yourself? Stay tuned for their debut at Sephora and discover why Hailey Bieber’s vision is redefining beauty standards.