Empire State Review Team 
In a major move that signals the growing influence of celebrity-backed beauty brands, Hailey Bieber’s skincare brand, Rhode, has been acquired by e.l.f. Beauty for a whopping $1 billion. The deal, which marks a significant milestone in both brands’ histories, includes $600 million in cash, $200 million in e.l.f. stock, and up to $200 million in performance-based payouts that will be disbursed over the next three years. This acquisition is seen as a clear indicator of Rhode’s rapid rise in the beauty industry and e.l.f. Beauty’s ongoing strategic expansion into the premium skincare and hybrid makeup market.
Rhode, which was founded by Bieber just three years ago, has quickly captured the attention of beauty enthusiasts with its simple yet effective approach to skincare. The brand focuses on creating essential skincare products and hybrid makeup that can be seamlessly integrated into daily routines. Its products, known for their minimalist formulas and clean ingredients, have resonated with a broad demographic, particularly with younger consumers seeking functional yet luxurious beauty solutions.
Hailey Bieber expressed her excitement over the acquisition, emphasizing that Rhode was always intended to be a brand that provided everyday skincare and makeup products that women could rely on. “When I first created Rhode, my vision was to offer something that was easy to use, effective, and beautiful,” said Bieber. “I’m thrilled that e.l.f. Beauty shares that vision and that we can continue to grow Rhode to even greater heights together.” The acquisition allows Rhode to leverage e.l.f. Beauty’s expansive resources, including its distribution network and marketing expertise, which will help expand the brand’s reach globally.
For e.l.f. Beauty, the acquisition of Rhode represents a significant step in diversifying its portfolio and solidifying its presence in the skincare market. Known primarily for its affordable cosmetics, e.l.f. Beauty has made strategic moves in recent years to expand into higher-end beauty products. The addition of Rhode’s premium skincare line complements e.l.f.’s existing offerings, enabling the company to target a broader consumer base, including those looking for more sophisticated, high-quality skincare solutions.
This deal highlights the growing trend of celebrity-driven beauty brands taking the industry by storm. Rhode’s success is a testament to Hailey Bieber’s business acumen and ability to connect with her audience, leveraging her massive social media following and status as a fashion and beauty icon. The brand’s rapid growth is particularly notable in a highly competitive market, where new entrants often struggle to gain a foothold. Rhode’s ability to carve out a unique space within the beauty industry reflects a wider consumer demand for clean, accessible, and multipurpose beauty products.
The performance-based payouts outlined in the deal further indicate Rhode’s expected continued success. If the brand maintains or increases its momentum, the additional $200 million could serve as an incentive to ensure that the brand remains on track to achieve its long-term goals. For e.l.f. Beauty, this is a calculated investment in the future of Rhode, which is already seen as a major player in the beauty world.
While the deal is a major achievement for both Hailey Bieber and e.l.f. Beauty, it also underscores the ongoing shift in the beauty industry towards inclusivity, clean ingredients, and multifunctional products. Brands like Rhode are meeting consumer demands for products that not only deliver effective results but also align with a growing focus on sustainability and transparency.
Looking ahead, the acquisition is expected to lead to even more exciting product developments from Rhode, as the brand now has the backing and resources of e.l.f. Beauty to enhance its offerings and reach a global market. The move also sets the stage for potential new collaborations and innovations in the beauty industry, as e.l.f. Beauty continues to evolve in response to changing consumer preferences.
With the acquisition now complete, both Hailey Bieber and e.l.f. Beauty are poised for continued growth in the beauty space. For Bieber, this marks an exciting new chapter in her entrepreneurial journey, while e.l.f. Beauty strengthens its position in the competitive skincare and beauty markets.
