In a landmark move that shakes up the beauty industry, E.l.f. Beauty has announced its acquisition of Rhode, the skincare brand founded by model and influencer Hailey Bieber, in a deal valued at up to $1 billion. The acquisition marks a powerful expansion of E.l.f.’s portfolio and highlights the growing influence of celebrity-driven beauty brands.
Rhode: From Startup to Skincare Powerhouse
Hailey Bieber launched Rhode in June 2022, entering the skincare world with a focus on minimalist, science-backed formulations and sleek, modern branding. Despite being a newcomer, Rhode quickly gained a massive following, thanks in part to Bieber’s global influence and loyal fanbase.
Key products like the Peptide Glazing Fluid, Barrier Restore Cream, and Lip Treatment became instant cult favorites. The brand’s emphasis on “glazed skin” and clean aesthetics resonated with Gen Z and millennial consumers seeking uncomplicated yet effective skincare.
In less than three years, Rhode achieved $212 million in net sales for the fiscal year ending March 31, 2025. This level of performance positioned it as one of the most successful celebrity-founded beauty lines to date.
Details of the $1 Billion Deal
According to reports from CNBC, WSJ, and other outlets, the acquisition deal involves:
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$600 million in cash
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$200 million in E.l.f. stock
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An additional $200 million in potential earn-outs based on Rhode’s performance through 2028
Hailey Bieber will remain actively involved in the brand’s operations. She will serve as Chief Creative Officer and Head of Innovation, ensuring that Rhode retains its unique voice and continues to reflect her vision.
E.l.f. Beauty’s CEO, Tarang Amin, emphasized that the deal was not just about numbers but about aligning with a brand and founder who represents “the next generation of beauty.” He described Rhode as having “rocketship growth potential.”
Why E.l.f. Wanted Rhode
E.l.f. Beauty has carved a niche for itself with affordable, high-quality, cruelty-free products, primarily in the cosmetics space. However, skincare has become a booming category, and the acquisition of Rhode allows E.l.f. to break further into the premium skincare segment.
Rhode’s success was also driven by impressive metrics beyond sales:
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$2.2 billion in Earned Media Value (EMV) in 2024, driven by Bieber’s massive social media influence.
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A diverse and agile supply chain, with sourcing across the U.S., Europe, and Asia, offering advantages over E.l.f.’s current China-heavy operations.
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A built-in community of young, loyal fans who trust the brand because of Bieber’s transparency and authenticity.
Celebrity Power in Beauty
This acquisition further cements the power of celebrity in the beauty industry. Bieber joins the ranks of Rihanna (Fenty Beauty), Selena Gomez (Rare Beauty), and Kim Kardashian (SKKN) in turning personal brand equity into high-performing businesses.
Bieber’s husband, pop star Justin Bieber, celebrated the news on Instagram with a series of affectionate photos and messages congratulating his wife. The couple’s public lovefest and mutual support only added fuel to the media frenzy surrounding the billion-dollar announcement.
Industry and Market Reactions
The market reacted positively to the news. Shares of E.l.f. Beauty (NYSE: ELF) rose after the deal was announced, signaling investor confidence in the company’s long-term strategy. Analysts say the acquisition will likely give E.l.f. a competitive edge in the lucrative skincare market.
The partnership is also expected to improve brand visibility, especially internationally, where Rhode plans to expand under E.l.f.'s guidance.
What’s Next for Rhode?
With E.l.f.’s robust infrastructure, marketing prowess, and retail partnerships (including Target, Ulta, and Walmart), Rhode will likely experience a significant scaling-up of operations. New product launches, global distribution, and potentially even brick-and-mortar expansions are all on the table.
Hailey Bieber’s continued involvement will help maintain the authenticity that fans love, but the brand will now be backed by a beauty giant with the resources to match its ambitions.
Final Thoughts
The E.l.f.–Rhode deal isn’t just a major business move — it’s a defining moment in the evolution of the beauty industry. It demonstrates the power of personal branding, the potential of digital-native companies, and the strategic foresight of legacy brands willing to bet on the future of beauty.
Whether you're a skincare enthusiast or a casual fan, this acquisition is sure to influence product shelves — and social media feeds — for years to come.
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