In a groundbreaking move that has sent ripples through the beauty industry, Hailey Bieber’s skincare brand, Rhode, is set to be acquired by e.l.f. Beauty for a staggering $1 billion. This acquisition, announced on May 28, 2025, marks a significant milestone in the evolution of celebrity-founded beauty brands and underscores the growing influence of social media in shaping consumer preferences.
The Genesis of Rhode: A Vision Realized
Rhode was launched in June 2022 by Hailey Bieber, a model and media personality with a keen interest in skincare. The brand was named after her middle name, symbolizing a personal touch and authenticity. From its inception, Rhode aimed to provide affordable, luxurious skincare products that deliver gentle and effective results. The initial product lineup included the Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment, all designed to nourish and enhance the skin barrier .
What set Rhode apart was its minimalist approach to skincare, focusing on essential products that addressed common skin concerns. This strategy resonated with consumers, particularly Gen Z, who appreciated the brand’s transparency and simplicity.
Meteoric Rise: From Launch to Acquisition
Rhode’s journey from a startup to a billion-dollar acquisition was nothing short of meteoric. Within just 11 days of launching, the brand crossed the eight-figure sales threshold, a feat rarely achieved in the beauty industry . The Peptide Glazing Fluid, priced at $29, became a cult favorite, with a waiting list of over 100,000 eager customers.
The brand’s success was propelled by Hailey Bieber’s active involvement and strategic use of social media. Her personal endorsements and behind-the-scenes glimpses into the brand’s development created a sense of exclusivity and connection with her audience. This approach not only fueled demand but also generated significant earned media value (EMV), with Rhode becoming the most impactful beauty influencer of 2024 .
The Acquisition: What It Means for Rhode and e.l.f. Beauty
The acquisition deal comprises $800 million in cash and stock, with an additional $200 million contingent on Rhode’s performance over the next three years . Hailey Bieber will continue her involvement with Rhode as the Chief Creative Officer and Head of Innovation, overseeing product development and marketing strategies. She will also serve as a strategic advisor to both Rhode and e.l.f. Beauty, ensuring the brand’s vision remains intact as it scales globally.
For e.l.f. Beauty, this acquisition represents a strategic move to expand its presence in the prestige beauty segment. The brand has been facing challenges, including uncertainties surrounding U.S.-China tariffs and inflationary pressures . By acquiring Rhode, e.l.f. aims to leverage the brand’s strong consumer base and innovative product offerings to drive growth and profitability.
The Future of Celebrity-Founded Beauty Brands
This acquisition sets a precedent for the future of celebrity-founded beauty brands. It highlights the importance of founder involvement and authenticity in building a successful brand. While many celebrity-backed brands have struggled to maintain relevance, Rhode’s success underscores the potential for long-term growth when the founder is deeply engaged in the brand’s development and operations.
The deal also signals a shift in the beauty industry’s landscape, where established companies are increasingly looking to acquire emerging brands with strong consumer loyalty and innovative products. This trend could lead to more consolidation in the industry, with larger companies seeking to diversify their portfolios and tap into new consumer segments.
A New Chapter for Rhode and e.l.f. Beauty
The acquisition of Rhode by e.l.f. Beauty marks the beginning of an exciting new chapter for both brands. For Rhode, it provides the resources and support needed to expand its reach and continue delivering high-quality skincare products. For e.l.f. Beauty, it offers an opportunity to enhance its position in the competitive beauty market.
As the beauty industry continues to evolve, the Rhode-e.l.f. acquisition serves as a testament to the power of authenticity, innovation, and strategic partnerships in building successful brands. It will be fascinating to see how this collaboration unfolds and what it means for the future of skincare and beauty.
