In a jaw-dropping move that has the beauty world buzzing, Hailey Bieber has sold her skincare and makeup brand, Rhode, to e.l.f. Beauty for a staggering $1 billion. Announced on May 28, 2025, this deal marks a monumental milestone for the 28-year-old model and entrepreneur, who launched Rhode just three years ago in 2022. The acquisition, which includes $800 million in cash and stock and a potential $200 million earnout based on future performance, underscores Hailey Bieber’s savvy as a businesswoman and the meteoric rise of her brand. Let’s dive into how Hailey Bieber turned Rhode into a Gen Z and millennial obsession, why e.l.f. Beauty bet big on it, and what this means for the future of celebrity beauty brands.
The Rise of Rhode: A Skincare Sensation
Hailey Bieber launched Rhode in June 2022 with a clear vision: to create a curated, accessible line of skincare and makeup essentials. Named after her middle name, Rhode debuted with just three products—Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment. These items, priced between $18 and $38, quickly became viral sensations, thanks to Hailey Bieber’s massive social media presence and her knack for tapping into beauty trends like “glazed donut skin.” By March 2025, Rhode had generated $212 million in net sales, a remarkable feat for a direct-to-consumer brand with only 10 products.
The brand’s success didn’t happen by accident. Hailey Bieber leaned heavily on her 50+ million Instagram followers to build hype, with waitlists topping 100,000 at launch. Products sold out in minutes, and collaborations, like one with Krispy Kreme for flavored lip treatments, kept the buzz alive. Rhode’s tight product assortment and focus on clean, effective formulas resonated with young consumers who craved simplicity in their skincare routines.
Why e.l.f. Beauty Wanted Rhode
The $1 billion deal with e.l.f. Beauty, a budget-friendly cosmetics giant, is a strategic play to break into the prestige beauty market. Known for products as low as $2 at retailers like Walmart and Target, e.l.f. saw Rhode as a way to attract higher-income shoppers. The brand’s digital prowess, with 367% year-over-year growth in earned media value in 2024, made it a perfect fit for e.l.f.’s TikTok-savvy marketing approach.
Here’s why e.l.f. Beauty went all-in on Rhode:
- Massive Growth: Rhode doubled its customer base in a single year, hitting $212 million in sales by March 2025.
- Social Media Dominance: Hailey Bieber’s influence and Rhode’s viral products, like Peptide Lip Treatments, fueled massive online engagement.
- Retail Expansion: Rhode’s upcoming launch in Sephora stores across the U.S., Canada, and the U.K. in fall 2025 promises even greater reach.
- Founder Synergy: Hailey Bieber’s hands-on approach aligns with e.l.f.’s founder-friendly ethos, seen in prior acquisitions like Naturium.
Hailey Bieber’s Role Post-Sale
Hailey Bieber isn’t stepping away from Rhode after the sale. She’ll stay on as the brand’s chief creative officer and head of innovation, overseeing product development and marketing. She’ll also act as a strategic advisor to e.l.f. Beauty, ensuring Rhode retains its unique identity. This move reflects her deep connection to the brand, which she calls her “baby.” In a statement, Hailey Bieber shared her excitement: “This partnership with e.l.f. Beauty marks an incredible opportunity to bring Rhode to more faces, places, and spaces globally.”
Her continued involvement is a smart move. Unlike some celebrity brands that falter when the founder steps back, Hailey Bieber’s active role ensures Rhode keeps its authentic edge. Her co-founders, Michael and Lauren Ratner, and CEO Nick Vlahos, formerly of The Honest Company, will also remain, providing continuity as Rhode scales up.
The Celebrity Beauty Boom
Hailey Bieber’s $1 billion deal puts her in elite company alongside stars like Rihanna, whose Fenty Beauty is worth nearly $3 billion, and Kylie Jenner, who sold a stake in her cosmetics line for $600 million. Celebrity beauty brands generated over $1 billion in sales in 2023, and Rhode’s success shows the formula still works when done right. Unlike some brands criticized for lacking authenticity, Hailey Bieber’s genuine passion for beauty—she’s worked with brands like Bareminerals and championed trends like “latte makeup”—sets Rhode apart.
However, the market isn’t without challenges. The celebrity beauty boom has cooled slightly, with brands like Ariana Grande’s R.E.M. Beauty facing headwinds. Consumers are pickier, demanding real expertise from celebrity founders. Hailey Bieber sidesteps this by being hands-on, from product formulation to social media tutorials, making Rhode feel personal and trustworthy.
What’s Next for Rhode?
With e.l.f. Beauty’s backing, Rhode is poised for global domination. The brand’s Sephora partnership will bring its products to physical stores, a major shift from its direct-to-consumer model. This move could boost sales further, especially in markets like the U.K., where Rhode already topped skincare brands in earned media value in April 2024. New product launches, like blushes and lip liners, will likely keep the brand fresh and relevant.
The potential $200 million earnout hinges on Rhode’s growth over the next three years, a target that seems achievable given its trajectory. e.l.f.’s CEO, Tarang Amin, called Rhode “a beautiful brand ready for rocketship growth,” and the company’s track record with brands like Keys Soulcare suggests they know how to nurture founder-led ventures without stifling their vision.
The Financial Impact for Hailey Bieber
While the $1 billion deal is a headline-grabber, Hailey Bieber won’t pocket the full amount. Rhode is partly owned by investors like Angel Capital Management and Aser Ventures, who funded the brand in 2024. If Hailey Bieber holds a 50-70% stake, as some estimate, she could net $500-700 million before taxes. That’s a massive windfall for a 28-year-old who started Rhode from scratch, but it falls short of billionaire status. Still, her continued role ensures she’ll benefit from Rhode’s future success.
| Key Deal Details | |
|---|---|
| Total Value | $1 billion |
| Upfront Payment | $800 million (cash & stock) |
| Potential Earnout | $200 million (performance-based) |
| Closing Date | Expected Q2 2026 |
| Hailey’s Roles | Chief Creative Officer, Strategic Advisor |
The Bigger Picture: Beauty Industry Trends
Hailey Bieber’s sale of Rhode reflects broader shifts in the beauty industry. Prestige beauty is thriving, even as mass-market brands like e.l.f. face inflation-driven demand dips. Rhode’s premium yet accessible pricing bridges this gap, appealing to Gen Z and millennials who want luxury without breaking the bank. The brand’s focus on a curated lineup—10 products compared to competitors’ sprawling catalogs—taps into a growing consumer desire for simplicity.
e.l.f.’s acquisition also signals a consolidation trend. As smaller brands struggle to scale, larger players like e.l.f. scoop them up to diversify their portfolios. This deal, e.l.f.’s biggest yet, follows their $355 million purchase of Naturium in 2023, showing their appetite for high-growth indie labels.
Hailey Bieber’s Vision and Legacy
What makes Hailey Bieber’s story so compelling is her hands-on approach. She didn’t just slap her name on a brand; she shaped Rhode’s aesthetic, from its sleek packaging to its viral marketing. Her “glazed donut skin” trend, born from her own skincare routine, became a cultural phenomenon, proving her influence extends beyond her celebrity status. In a 2022 interview, she told Forbes, “You don’t know what to expect when it’s out in the world. This has far exceeded my hopes.”
Her journey mirrors that of other self-made beauty moguls, but Hailey Bieber stands out for her authenticity. She’s been a beauty enthusiast since her modeling days, and her commitment to Rhode—even post-sale—shows she’s in it for the long haul. Fans have flooded social media with praise, calling the deal a testament to her hustle and vision.
The Future of Celebrity Beauty Brands
The Rhode sale raises questions about the future of celebrity beauty ventures. Can they sustain their hype in a crowded market? Hailey Bieber’s success suggests the key lies in authenticity and innovation. By staying involved, she ensures Rhode won’t lose its soul, a risk for brands overly reliant on a star’s name. As e.l.f. pushes Rhode into new markets, the brand could redefine what a celebrity beauty line can achieve.
For now, Hailey Bieber is riding high. The $1 billion deal cements her as a beauty industry powerhouse, and her next moves will be closely watched. Will Rhode become the next Fenty, or will it carve its own path? Only time will tell, but one thing’s clear: Hailey Bieber is just getting started.