Hailey Bieber is now a billionaire
29 May 2025

Hailey Bieber, the 28-year-old model and entrepreneur, has become a billionaire after selling her beauty brand, Rhode, to e.l.f. Beauty for $1 billion.

The deal was announced on Wednesday (local time) and will see e.l.f. pay Rhode shareholders $800 million in cash and stock, with an additional "potential earnout consideration" of $200 million based on performance-related conditions.

Bieber will continue as the Chief Creative Officer and Head of Innovation of Rhode.

e.l.f. Beauty's strategic move into prestige beauty market
Market shift

Bieber announced the deal on Instagram, calling e.l.f. "a like-minded disruptor."

The acquisition marks a strategic shift for e.l.f. Beauty as it expands into the prestige beauty market.

The company has been facing weak demand from mass-market customers due to persistent high inflation, reported the NY Post.

Sky Canaves, an analyst at eMarketer, called the Rhode deal a "bold move" for e.l.f. into premium beauty during this challenging time.

Rhode has been successful online and offline
Brand growth

Despite the industry slowdown, Rhode has seen significant success among Gen Z consumers.

The brand, which sells products like its $18 "peptide lip treatments" exclusively through its website or pop-up stores, generated about $212 million in sales for the year ending March 31.

It is also planning to expand into Sephora stores across the US and Canada this fall.

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Support

After the deal closes, Bieber will continue as Rhode founder and will also act as a "strategic advisor" to e.l.f.

The transaction is expected to close in the second quarter of fiscal year 2026.

Meanwhile, following the deal news, Bieber's pop star husband, Justin Bieber, reshared her post and dropped a couple of loved-up pictures with her.

This came after Justin was bashed for giving Bieber a backhanded compliment on Instagram upon her scoring her first solo American Vogue cover.