Hailey Bieber Sells Rhode For $1 Billion After 3 Years

Best known for being married to Justin Bieber, but certainly making a name for herself, Hailey Bieber has just sold her cosmetics brand Rhode to e.l.f. beauty for a huge $1 billion – making it one of the biggest celebrity beauty exits ever.

And the most impressive part? Rhode is only 3 years old and has only 10 products.

So how did she do it?

 

The Growth Of Rhode

 

Rhode was founded in 2022 by Hailey Bieber, who wanted to make products that integrated skincare and makeup.

Named after her middle name, the brand quickly rose to success due to Hailey’s huge social media following, which stands at around 55 million on Instagram.

Boasting just 10 minimalist products, the brand sold directly to consumers, generating $212 million in net sales in the 12 months leading up to March 2025.

Rhode also made some smart creative moves, selling through TikTok and creating their viral phone cases that held Rhode lip glosses – a move that got them a cult following and coverage in all major magazines like Vogue and Cosmopolitan.

And now, just 3 years later, Hailey has sold the brand to e.l.f. beauty for $1 billion, showing just how powerful celebrity influence can be in the world of business.

 

A Big Deal For e.l.f.

 

e.l.f. beauty, known for affordable, cruelty free, Gen-Z focused makeup, acquired Rhode in its biggest deal to date.

The deal includes $600 million in cash, $200 million in stock and an extra $200 million in performance-based pay-outs over the next 3 years.

But the deal doesn’t mean that Bieber is off the hook. In fact, as part of the agreement, Hailey has agreed to continue as Founder, Chief Creative Officer and Head of Innovation – overseeing ongoing product development.

Commenting on the deal, Hailey said:

“From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day. Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to reach more of our community with even more innovative products and widen our distribution globally.”

 

 

The Rise Of Celebrity Beauty Brands

 

But Hailey Bieber isn’t the only celebrity at the helm of a successful beauty brand. In fact, a number of A-listers have used their platforms to build beauty empires.

And they’re successful too, analysis by Nielsen IQ in 2024 revealed that celebrity beauty brands collectively surpassed $1 billion in sales in 2023 – and it’s only growing year on year.

Some examples of famous celebrity beauty brands include:

Rhianna’s Fenty Beauty, which stands out for its inclusive range of foundation shades, with over 40 currently on its roster.

Kim Kardashian’s SKKN, which boasts luxury skincare for a number of complexions.

Ariana Grande’s r.e.m beauty that releases cruelty-free products that mimic some of Ariana’s iconic makeup looks.

Kylie Jenner’s Kylie Cosmetics, which pioneered the celebrity beauty brand space, showing how powerful influencer marketing can be.

Selena Gomez’ Rare Beauty, which focuses on self-love and breaking down unrealistic beauty standards.

Lady Gaga’s Haus Labs which allows users to enjoy a range of bright and bold colours, without damaging their skin.

Florence by Mills, Millie Bobbie Brown’s makeup brand that focuses on clean ingredients.

Beyoncé’s Cécred – a haircare brand that focuses on protective shampoo and scalp products.

 

Why Is The Beauty Industry So Hot At The Moment?

 

With such a big deal secured, many might be wondering: why now?

With US markets experiencing some economic turbulence, and treasury yields on the up according to Yahoo Finance, it might seem like a strange time to invest into a product that is a luxury buy.

After all, as people’s pockets get tighter, they’re less likely to spend money on lipstick – right?

Actually, it turns out the inverse is true. The ‘lipstick effect’ is a theory coined by Leonard Lauder, chairman of the board of Estée Lauder, who noticed that sales of affordable luxury goods like makeup actually increase during times of economic stress. This is because consumers spend more money on ‘little luxuries’ rather than bigger, more expensive purchases.

As the US faces economic headwinds in the face of tariffs and other changes, this might be a smart move by e.l.f. to get ahead of that sales peak.

 

The Road Ahead For Rhode

 

Whilst the deal is certainly a huge milestone in Rhode’s rise from a startup to $1 billion company in just 3 years, it isn’t the end of the story.

Now, e.l.f. will hold the reigns, and it will be interesting to see how the brand evolves with a new major stakeholder involved.

But for Hailey Bieber, this will certainly go down as a major milestone, solidifying her as a successful business woman in the world of celebrity beauty.