Hailey Bieber's Rhode Sold to E.l.f. for $1 Billion
The entrepreneur also announced her new roles as Rhode's Chief Creative Officer and Head of Innovation and strategic advisor to E.l.f. Beauty.
There’s a new billion-dollar beauty brand in town. On Wednesday, E.l.f. Beauty announced that it would acquire Hailey Bieber’s Gen Z-loved line, Rhode, for a cool $1 billion. The sale was confirmed by Bieber in a lengthy message shared on Instagram.
“When I launched rhode in 2022, I always had big dreams for the company, and the most important thing to me is to keep bringing rhode to more spaces, places, and faces globally,” Bieber wrote on social media following news of the acquisition. “So today I am so incredibly excited and proud to announce that we are partnering with e.l.f. Beauty as we step into this next chapter in the world of rhode.”
The deal, E.l.f’s largest acquisition to date, consists of $800 million in cash and stock payable at closing. There’s also an additional potential earn-out consideration of $200 million based on the growth of the brand over a three-year period.
Bieber brought on businessman, Michael D. Ratner, as a founding partner in the business upon its creation, and according to a Forbes article, accepted funding from the investment firm One Luxury Group. Though Bieber herself remained the majority owner. “When you're building anything, you have to trust yourself and you have to trust your gut,” Bieber told the business magazine in 2022. “I also really wanted to invest in myself. The most I've ever spent my money on is this brand.”
The entrepreneur continued, “I found a like-minded disruptor with a vision to be a different kind of company that believes in big ideas and innovation in the same way that I do and will help us continue to grow the brand. I feel invigorated, excited and more ready than ever to step into an even bigger role as Chief Creative Officer, and Head of Innovation of rhode as well as strategic advisor to e.l.f. Beauty.”
Bieber established rhode in 2022 to much success thanks to a viral line of tech-based skincare products, pocket blushes, peptide lip treatments, and even an influencer-loved phone case. It generated $212 million in revenue over its past fiscal year ending in March 2025 with just ten products. Earlier this month, rhode announced that it would launch in all Sephora locations in the US and Canada in the fall, with plans to expand to Sephora UK by the end of 2025. The brand had previously operated by a direct-to-consumer model.
E.l.f. is a consumer favorite when it comes to accessibly priced cosmetics. In an interview with CNBC, CEO Tarang Amin said he expects rhode to complement the business’s portfolio as a higher-end product.
“Thank you to the amazing rhode team who have helped me build over the years,” she finished the message. “I couldn’t have done it without all of you. And to our rhode community, thank you for being the most supportive and for being on this journey, this next chapter is going to be even more incredible together!
