5 Shocking Reasons Why Hailey Bieber Sold Rhode To E.l.f. Beauty For A Staggering $1 Billion
The beauty world was fundamentally reshaped in 2025 when e.l.f. Beauty, Inc. officially acquired Hailey Bieber’s viral skincare brand, Rhode. This landmark transaction, valued at a staggering $1 billion, was not merely a corporate merger but a seismic event that confirmed the immense power of celebrity-backed, direct-to-consumer (DTC) brands in the modern market. As of today, December 19, 2025, the dust has settled on the August completion date, and the industry is still dissecting the strategic brilliance behind e.l.f.’s bold move to bring the "glazed donut skin" phenomenon under its massive corporate umbrella.
The acquisition of Rhode by e.l.f. Beauty signals a new era of brand consolidation, where established giants are willing to pay a premium for culturally relevant, hyper-growth entities that dominate the coveted Gen Z and Millennial demographics. This deep dive explores the financial mechanics, the market forces, and the personal decision-making that led to one of the biggest beauty deals of the year, revealing why Hailey Bieber chose to sell her company after initially planning to "never sell."
Hailey Bieber: The Entrepreneurial Journey and Rhode's Meteoric Rise
Hailey Rhode Baldwin Bieber is an American model, media personality, and entrepreneur who has become one of the most powerful figures in the global fashion and beauty space. Her journey from the runway to a billion-dollar brand owner is a modern entrepreneurial fairy tale.
- Full Name: Hailey Rhode Baldwin Bieber
- Date of Birth: November 22, 1996
- Place of Birth: Tucson, Arizona, U.S.
- Occupation: Model, Media Personality, Entrepreneur
- Spouse: Justin Bieber (m. 2018)
- Parents: Stephen Baldwin (Father), Kennya Baldwin (Mother)
- Brand Founded: Rhode (Launched June 2022)
- Brand Focus: Skincare and color cosmetics, centered on simple, effective formulas and the "glazed donut skin" aesthetic.
- Acquisition Date: Definitive agreement signed May 2025; deal completed August 5, 2025.
- Acquiring Company: e.l.f. Beauty, Inc. (e.l.f. Cosmetics, Naturium, W3LL PEOPLE)
Rhode launched in June 2022 with a minimalist line focused on essentials like the Peptide Glazing Fluid and Lip Peptide Treatment. The brand quickly achieved cult status, driven by Hailey Bieber's massive social media following (over 50 million Instagram followers) and her ability to set global beauty trends. The brand’s success was not just hype; it was built on a lean, DTC model that generated explosive sales figures, making it a prime target for acquisition.
The $1 Billion Bombshell: Inside the Rhode-e.l.f. Acquisition
The news of the acquisition sent immediate shockwaves through the financial and beauty sectors. On May 28, 2025, e.l.f. Beauty announced the definitive agreement to acquire Rhode for a total enterprise value of $1 billion. This massive valuation for a brand that was barely three years old highlighted the significant shift in how market value is calculated in the celebrity beauty space.
The Financial Structure of the Deal
The $1 billion deal was structured to ensure long-term incentives and continued performance. The consideration was reportedly comprised of $800 million payable at closing, with the remaining $200 million tied to performance-based milestones. This structure is common in high-value acquisitions, ensuring that the founding team, including Hailey Bieber, remains motivated to drive the brand's growth under the new ownership.
For e.l.f. Beauty, the acquisition was a strategic masterstroke. The company, already known for its affordable and popular e.l.f. Cosmetics line, has been aggressively expanding its portfolio, notably with the successful acquisition of Naturium. Bringing Rhode into the fold instantly diversified e.l.f.'s offerings, adding a high-growth, prestige-adjacent skincare brand that connects directly with a younger, trend-focused audience. The market reacted positively, with e.l.f. Beauty’s stock surging by 24% in the days following the announcement, reflecting investor confidence in the deal's potential.
Why e.l.f. Paid $1 Billion: The Power of 'Glazed Donut Skin' and Gen Z Dominance
The $1 billion price tag was not simply for a product line, but for a powerful combination of cultural influence, proven sales velocity, and a bulletproof connection to the future of the beauty consumer. The valuation was justified by several key performance indicators (KPIs) that make Rhode a uniquely valuable asset.
1. Explosive Sales Growth and Profitability
In the year ending March 31, 2025, Rhode generated a remarkable $212 million in sales. Achieving this level of revenue in just three years, primarily through a DTC model, is almost unprecedented in the modern beauty landscape. This proven track record of converting celebrity hype into tangible, high-velocity sales was the clearest signal of the brand's intrinsic value.
2. The 'Hailey Bieber Effect' and Topical Authority
Hailey Bieber’s personal brand is a powerhouse of topical authority, particularly around the "skin-minimalism" and "glazed donut skin" trends she pioneered. The acquisition gives e.l.f. direct access to this cultural capital, allowing them to leverage the founder’s ongoing influence and trend-setting ability. Rhode is not just a brand; it’s the physical manifestation of a viral beauty aesthetic that resonates deeply with the Gen Z demographic, a consumer group notoriously difficult for legacy brands to capture.
3. Strategic Portfolio Diversification
e.l.f. Beauty’s strategy is to build a portfolio of "disruptive" brands. With e.l.f. Cosmetics dominating the mass market and Naturium capturing the accessible, science-backed skincare niche, Rhode fills a crucial gap at the more premium, celebrity-driven end of the market. This synergy allows e.l.f. Beauty to compete across virtually every price point and consumer segment, significantly strengthening its overall market position against competitors like L'Oréal and Estée Lauder.
4. DTC Mastery and Community Engagement
Rhode perfected the DTC model, creating intense demand and scarcity that fueled its viral success. e.l.f. will now be able to integrate Rhode’s community-centric marketing and digital-first operations into its larger framework, enhancing its own digital capabilities while simultaneously expanding Rhode's reach into new retail channels, such as Sephora, a move that was highly anticipated following the acquisition.
What This Means for Rhode's Future and Product Availability
The sale to e.l.f. Beauty is expected to dramatically change the landscape for Rhode consumers. The primary benefit of moving under a corporate giant is the immediate access to vast manufacturing, distribution, and retail networks. For years, Rhode products were primarily available only through the brand's website, often leading to rapid sell-outs and long waitlists.
Wider Retail Distribution
The most significant change is the move into major retail. Following the acquisition, Rhode has already begun its rollout into key retail partners, including the prestigious Sephora, both online and in-store. This shift from a pure DTC model to a robust omni-channel presence will drastically improve Rhode product availability, allowing millions more consumers to easily purchase the Peptide Glazing Fluid, Barrier Restore Cream, and the popular Lip Peptide Treatment.
Continued Innovation and Leadership
Hailey Bieber is expected to remain deeply involved in the brand as a founder and creative force, ensuring that the brand’s unique identity and vision remain intact. The influx of capital and operational expertise from e.l.f. Beauty will allow the Rhode team to accelerate product innovation, explore new product categories (beyond skincare and into color cosmetics), and rapidly expand its international footprint. The partnership is a textbook example of a large corporation buying growth and cultural relevance, while the founder gains the resources to scale their vision globally at an unprecedented pace. The $1 billion deal cements Rhode not just as a celebrity brand, but as a formidable player in the global beauty industry.
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