Rhode’s $1 Billion Leap: Hailey Bieber’s Beauty Empire and the Shifting Sands of Stardom
The beauty industry is a dazzling, ever-expanding galaxy, where innovation meets influence, and celebrity endorsements have morphed into full-fledged empires. In 2025, this landscape continues its explosive growth, projected to exceed $650 billion in revenue, with skincare leading the charge, contributing 40% of the total. Every day, this powerhouse sector cashes out millions, a testament to humanity’s enduring quest for self-care and enhancement.
At the heart of this dynamic cosmos, a significant tremor just occurred: Hailey Bieber’s minimalist skincare line, Rhode, announced its definitive agreement to be acquired by beauty giant E.L.F. Beauty for a staggering $1 billion. This monumental deal, especially for a brand barely three years old, immediately redraws the beauty map, placing Rhode firmly in the elite tier of rapid-growth success stories.
The Rise of Rhode: From “Glazed Donut” to Billion-Dollar Brand
Rhode was born from Hailey Bieber’s personal skincare philosophy: “one of everything really good.” Launched in June 2022, the brand quickly became synonymous with her signature “glazed donut” skin aesthetic. Hailey’s vision, supported by co-founders Michael D. Ratner and Lauren Ratner, and CEO Nick Vlahos, was to create essential, efficacious skincare and hybrid makeup products for everyday use.
From its inception, Rhode captivated consumers, primarily through its direct-to-consumer (DTC) model, building a robust online community. Its initial minimalist lineup of peptide-infused lip balms, serums, and creams resonated deeply, particularly with younger demographics drawn to Hailey’s influential social media presence. In 2024, Rhode was recognized as the No. 1 skincare brand in Earned Media Value (EMV), showcasing an incredible 367% year-over-year EMV growth. This meteoric rise, fueled by innovative marketing and Hailey’s direct connection with her audience, saw Rhode achieve $212 million in sales in the last 12 months (leading up to the acquisition announcement), with just about 10 products in its assortment.
The E.L.F. Acquisition: A Billion-Dollar Bet
The news of E.L.F. Beauty’s acquisition of Rhode, announced on May 29, 2025, for a deal potentially reaching $1 billion, sent ripples across the industry. The agreement comprises $800 million payable at closing (consisting of $600 million cash and $200 million in E.L.F. stock) with an additional potential $200 million earnout based on Rhode’s growth over a three-year period post-closing.
E.L.F. Beauty’s Chairman and CEO, Tarang Amin, lauded Rhode as a “like-minded disruptor” that diversifies their portfolio and makes “the best of prestige accessible.” This acquisition aligns with E.L.F.’s strategy of snapping up fast-growing, innovative brands, similar to their successful 2023 purchase of Naturium. E.L.F. plans to leverage its deep ties to retail partners to expand Rhode’s distribution globally, starting with Sephora U.S. and Canada this fall, and the U.K. by year-end.
Hailey’s Continued Role: More Than Just a Face
A crucial condition of the acquisition ensures Hailey Bieber’s continued, pivotal involvement. She will retain her role as founder and additionally serve as Rhode’s Chief Creative Officer and Head of Innovation, overseeing creative direction, product innovation, and marketing. Furthermore, she will act as a strategic advisor to the combined companies, solidifying her long-term influence. This move underscores E.L.F.’s recognition that Hailey’s vision, authenticity, and connection with consumers are intrinsic to Rhode’s success and future growth. Her co-founders, Michael D. Ratner and Lauren Ratner, along with CEO Nick Vlahos, will also continue to lead the brand from its Los Angeles office.
The Celebrity Beauty Brand Landscape: A Glimmering Gauntlet
Rhode’s journey is a microcosm of the broader celebrity-owned beauty industry, a high-stakes arena where influence is currency, but product efficacy is paramount.
The Best and Most Popular So Far: Among the pantheon of celebrity beauty brands, a few truly stand out:
- Fenty Beauty by Rihanna: Still the undisputed titan, with a 2024 valuation of $2.8 billion and annual revenues around $600 million. Fenty revolutionized the industry with its radical inclusivity, particularly its foundation shade range, setting a new standard for diversity.
- Rare Beauty by Selena Gomez: Valued at over $2 billion as of 2024, Rare Beauty generated an estimated $350 million in revenue in 2023 and crossed $400 million in net sales by February 2024. Its success isn’t just in sales; it’s deeply rooted in its mission-driven approach, advocating for mental health awareness. Selena Gomez’s authentic connection with her audience and her focus on “makeup made to feel good in, without hiding what makes you unique” has fostered immense loyalty.
- Kylie Cosmetics by Kylie Jenner: A pioneer in the celebrity beauty space, valued at around $1.2 billion in 2024 with revenues of $200 million. Despite facing criticism for over-saturation and changing trends, Kylie’s brand remains a significant player, largely due to her massive social media reach.
- Pattern Beauty by Tracee Ellis Ross: A beloved haircare brand for textured hair, built on authenticity and a genuine understanding of specific hair needs.
- Anomaly Haircare by Priyanka Chopra Jonas: Valued at $150 million in 2024 with $50 million in revenue, known for its clean formulations and accessible price point.
Comparison with Other Brands: Rhode’s success, particularly its valuation and acquisition, places it firmly alongside these giants, especially considering its relative youth. While Rare Beauty excels in color cosmetics with a strong social mission, and Fenty dominates in inclusivity and broader cosmetic categories, Rhode carved its niche in minimalist, effective skincare, focusing on core, efficacious products. Its rapid growth without extensive retail distribution (being primarily DTC until now) speaks volumes about the demand for its specific product philosophy and Hailey’s influence. The acquisition by E.L.F. will undoubtedly accelerate its trajectory into wider retail, putting it in even more direct competition.
Justin Bieber’s 2025 Controversies and the “Why” Behind the Sale
The timing of Rhode’s sale has naturally led to speculation, especially given recent public discourse surrounding Hailey and her husband, Justin Bieber. In May 2025, reports have highlighted escalating tensions in their marriage, with sources claiming their relationship is becoming “more unbearable.”
Key controversies and dynamics include:
- Justin’s Recent Attitude and Public Behavior: Reports cited Justin’s “awkward comment” about Hailey’s Voguecover (where he jokingly stated he once told her she’d “never be on the cover”) and “questionable behavior with other women in public,” including attending SZA’s concert without Hailey and a public kiss with rapper Sexyy Red. A resurfaced video also showed Justin making “disgusting” comments to Hailey, saying he would have “gotten rid of her a long time ago” if she “wasn’t so hot.” These incidents have sparked widespread criticism and fueled marital discord rumors.
- Alleged Divorce Drama: Despite Hailey’s recent public shows of support for Justin (like attending SZA’s concert), sources claim the couple is “constantly at each other’s throats” and “avoid being in the same room” at home. Hailey celebrating the Rhode deal solo in West Hollywood, with Justin notably absent, further added to the speculation, though Justin did repost the announcement on his Instagram, albeit with a blank caption.
- Financial Pressures: Reports suggest Justin Bieber has been facing financial difficulties. Audits reportedly revealed he owes his former manager, Scooter Braun, over $8 million related to his canceled 2022 “Justice” tour. Furthermore, reports indicate that Justin was considering legal action against his financial managers for allegedly squandering $300 million of his fortune, though sources also suggest excessive personal spending might be the real issue. While Justin’s representatives have denied financial trouble, sources close to the couple have allegedly stated that Hailey is “100 percent the breadwinner now.”
Connecting the Dots: Why the Sale? While the acquisition is framed as a strategic “rocket ship growth” opportunity for Rhode, the timing amidst these personal and financial narratives is hard to ignore.
- Mitigating Financial Strain: The $1 billion deal provides a massive cash infusion. While Rhode was successful, a substantial payout (especially the initial $600 million in cash to Rhode’s equity holders, including Hailey) could certainly alleviate any personal or family financial pressures, perceived or real. If indeed Hailey has become the primary earner, this sale would provide her with immense personal liquidity and financial independence.
- De-risking and Scaling: Selling to a larger entity like E.L.F. Beauty allows Hailey to de-risk her personal investment and offload the immense operational burden of scaling a global beauty brand. While she remains deeply involved creatively, the back-end complexities (manufacturing, distribution, regulatory compliance for global markets) are now E.L.F.’s responsibility. This allows her to focus on what she excels at – branding, product innovation, and connecting with the community – without the full entrepreneurial weight.
- Future-Proofing the Brand: The beauty industry is fickle. Brands, even celebrity-backed ones, can rise and fall quickly. Selling at its peak, especially to a company with E.L.F.’s infrastructure and proven track record of growing acquired brands (like Naturium), can be a smart move to ensure Rhode’s longevity and continued expansion beyond Hailey’s direct daily oversight. It transitions Rhode from a celebrity-driven startup to a major, well-supported player in the broader beauty market.
- Personal Focus Amidst Drama: While speculative, the intense public scrutiny on her marriage and Justin’s controversies could also be a factor. By selling Rhode, Hailey might be consolidating her professional commitments in a way that allows her more personal space or mental bandwidth to navigate her private life, rather than carrying the full weight of a rapidly expanding, independent business.
The Way Forward for Hailey Bieber
Hailey Bieber stands at an incredibly powerful juncture. With the Rhode sale, she transitions from successful founder to a strategic, influential force within a larger beauty conglomerate.
- Elevated Industry Status: This deal solidifies her position not just as a model or influencer, but as a bona fide beauty mogul and shrewd businesswoman. It demonstrates her ability to build a highly valuable brand from scratch in just three years.
- Creative Freedom with Support: Her role as Chief Creative Officer and Head of Innovation allows her to continue shaping Rhode’s product vision and brand identity, now with the financial backing and operational might of E.L.F. This could lead to more ambitious product development and wider global reach than Rhode could have achieved independently.
- Financial Security and Independence: The significant proceeds from the sale provide immense personal wealth, offering her substantial financial security and independence, regardless of external circumstances.
- Navigating Public Life: While the drama surrounding her marriage remains, having secured Rhode’s future allows her to confront these personal challenges from a position of strength and potentially with more privacy.
The beauty industry continues to be a cash cow, with daily revenues in the hundreds of millions globally. Hailey Bieber’s Rhode is now a shining example of how a celebrity, combined with a strong brand vision and strategic execution, can tap into this immense market. Her journey, complete with its public triumphs and private trials, will undoubtedly continue to be closely watched, as she navigates this new chapter as a billionaire beauty entrepreneur.
