Beauty Mogul Move: e.l.f. Beauty Seals $1B Deal for Hailey Bieber’s Rhode
Cue the confetti for corporate synergy—e.l.f. Beauty is dropping a cool $1 billion (plus potential bonuses) to scoop up 90 percent of Hailey Bieber’s eight-figure skincare sensation, Rhode. Announced April 3 via People Magazine and picked up by Dotdash Meredith’s RSS feed, the move catapults e.l.f. (NYSE: ELF) squarely into prestige territory, all while Hailey keeps her hands on creative reins. The deal breaks down as roughly $1 billion in cash and common stock, with up to $400 million more if the brand hits certain performance targets—and yes, there are tiered royalties from net sales to sweeten the pot. e.l.f. CEO Tarang Amin waxed enthusiastic about “unlocking the next level of growth,” which is corporate speak for “we really want your TikTok-driven skincare cult following.” Rhode’s online devotees—4.4 million strong on Instagram—have been lathering up over bestselling serums like HA+CAT Prebiotic Gel Cream and Twice serum since the brand’s March 2022 debut (People Magazine). Meanwhile, e.l.f. Beauty chalked up $817 million in net sales in fiscal 2023, proving it isn’t afraid to splash big numbers on a buzzy brand (Dotdash Meredith).
In typical beauty-industry fashion, the announcement dropped alongside e.l.f.’s fourth-quarter earnings report, giving financial analysts yet another reason to refresh their spreadsheets. Hailey Bieber, who retains creative director duties and joins e.l.f.’s board, promised this won’t be a hostage situation. “Partnering with e.l.f. gives Rhode access to resources only a large public company can offer,” she said, sounding less like a model and more like a very polished investor relations slide. This one’s got everything: IPO-level hype, a celebrity founder with a nine-figure net worth, and the eyebrow-raising reality that a tinted lip balm could be a billionaire-dollar business.
Of course, every silver lining has a shampoo ingredient list. Critics are already asking if a mass-market player can keep up the artisanal vibe that made Rhode stand out in the first place. Will e.l.f.’s supply chain muscle dilute Hailey’s millennial-pink packaging aesthetic? Or will the economies of scale translate to an affordable glow for thousands more? The jury’s out, but one thing’s for sure: your bathroom shelf is about to feel a lot more corporate. So fasten your seat belts for another round of beauty-business gymnastics. Tune in next time for more eyebrow-raising partnerships and questionable financial gymnastics.
Sources: Celebrity Storm and People Magazine, Dotdash Meredith
Attribution: Creative Commons Licensed
