Hailey Bieber sells her Skincare and Make Up Rhode brand to Elf Up for a billion dollars

There is a new billionaire in the wealthiest club. Hailey Bieber He sells his skincare and make -up brand Rhode to Elf For a billion dollars. To announce it, with a post on Instagram, the founder of brand that has become among the most loved of the Z generation: « I am incredibly enthusiastic and proud, I found an innovator with my own vision, which wants a different type of company, which believes in great ideas and innovation in the same way I believe it, and which will help us further grow the brand ».

“When I launched Rhode in 2022, I always had Great dreams for the companyand the most important thing for me is to continue to bring Rhode to more and more spaces, places and faces all over the world – Bieber writes on Instagram -. Thanks to the extraordinary team that has helped me to build all this over the years. I wouldn’t have done it without you. And to our Community Rhode, thanks for always being so supporting and for being part of this path ».

The contract provides for an initial payment of 800 million In cash and shares, with further 200 million bonuses related to the brand’s performance in the next three years. According to what Elf Tarang Amin’s CEO said in an interview a Business of Fashion The discussion for the acquisition of Rhode had been going on last autumn. The agreement should be concluded in the second quarter of the tax year 2026 of the company – or by the end of this year.

Because Elf is interested in Rhode

Rhode was founded by Hailey Bieber in 2022 and has since quickly established himself among the most appreciated beauty brands by the Z generation (but not only) for its minimal aesthetic and advanced but still accessible skincare formulas. Rhode has more than doubled its customer base and in the last fiscal year it has generated 212 million dollars of turnover with only 10 products, including some icons of the brand such as the Pocket BlushThe Peptide Lip Treatment and the essence Glazing Milk. In 2024 it became the number one skincare brand for media value earned (which considers the exposure obtained through methods other than paid advertising) with a growth of 367% compared to the previous year. Just a few weeks ago Rhode also announced that its products will arrive in all the Sephora stores of the United States and Canada in the autumn, and in the Sephora of the United Kingdom by the end of the year.

But these are not only the reasons that prompted Elf to buy Rhode: the two brands in fact share explosive growth and a certain ability to convey their products through digital and social media. Like the Hailey Bieber brand ELF also has an loyal fans of fans online and over the years it has focused a lot on Marketing on Tiktok. In addition, the company is also trying to further expand in the skincare sector, thus expanding its offer to tickle the interest of younger consumers, who are increasingly passionate about skin care. Two years ago Elf had bought the Skincare brand Naturium For 355 million dollars and the acquisition of Rhode in the eyes of CEO Tarang Amin is a further step in the direction of consolidating growth in the skincare sector and reaching a clientele with a higher income (Rhode has in fact a higher positioning than Elf, editor’s note).
«Elf cosmetics have an average base price of about 6.50 dollars, while Rhode products, on average, are around the high end of the 20 dollars. So I would say that we bring a different consumer segment, but with the same approach in the way we involve them and entertain them, « said Amin.
The acquisition of ELF can therefore be read as a strategic move to grab the brand before the competitors (there were months that the sales rumors of Rhode were chasing each other), but arrives in an uncertain moment for the company. Although with the price increases already expected, the duties imposed by China will probably reduce Elf profits over time.

The brands of celebrities

A success that confirms how Rhode is the exception in a panorama in which the brands of the celebrities are increasingly weak and struggle to break through in a concrete way as it happened a few years ago. Rem Beauty by Ariana Grandefor example, has encountered many difficulties since it was launched on the market, as well as the Blake Lively hair care line (overwhelmed by the storm of the case of harassment on the set of IT ENDS WITH US with Justin Baldoni) or Haus Labs by Lady Gaga. In addition to Rhode, they continue to convince the public brands such as Fenty by Rihanna and Rare Beauty by Selena Gomez, who are appreciated for the quality of the products and the ability to communicate the brand through targeted communication campaigns. It is no coincidence that these brands are often the protagonists of viral trends on social media, often linked to specific products or even brands marketing campaigns. The Glazed Donut Skin, or hydrated and « glazed like a donut » skin, the Strawberry Girl Makeup or Makeup milk that recalled some new products of its brand are all trends that Hailey Bieber has made viral on social media, recreated by thousands of creators, admirers and Rhode customers.