The internet is buzzing after Hailey Bieber's skincare brand, Rhode, was acquired by e.l.f. Beauty in a deal potentially worth $1 billion. The news broke on May 28, 2025, sending shockwaves through the beauty industry and sparking reactions from fans and fellow celebrities alike. Among those reactions, one stood out: that of Hailey's husband, Justin Bieber.
Hailey Bieber, the 28-year-old model and entrepreneur, launched Rhode in 2022, naming it after her middle name. The brand quickly gained popularity for its minimalist approach, effective formulas, and viral marketing strategies, particularly on TikTok. Rhode's success can be attributed to its focus on clean beauty, accessible prices, and Hailey's personal connection with her audience. The brand achieved $212 million in net sales in the year leading up to March 2025.
E.l.f. Beauty's acquisition of Rhode is a significant move, with the potential deal valued at $1 billion. The agreement includes $800 million paid at closing, comprised of $600 million in cash and $200 million in newly issued e.l.f. Beauty stock. An additional $200 million earnout is possible based on Rhode's performance over the next three years. Hailey Bieber will remain with the company as Chief Creative Officer and Head of Innovation, taking on an expanded role.
Justin Bieber, 31, showed his support for Hailey in a characteristically understated yet affectionate way. He reposted Hailey's announcement on Instagram, including a screenshot of her original caption, without adding any personal comments. Hailey responded to his post with an emotional face emoji and a red heart. Later, Justin shared a more intimate photo of himself embracing Hailey. While some fans humorously noted Justin's decision to forgo a caption, others interpreted it as a sign of respect for Hailey's achievement and a desire to avoid overshadowing her moment. This approach may stem from past instances where his comments on Hailey's accomplishments drew criticism.
Hailey Bieber expressed her excitement about the partnership with e.l.f. Beauty, stating that it marks an incredible opportunity to reach more of the Rhode community with innovative products and expand global distribution. She described e.l.f. as a "like-minded disruptor" that shares her vision for innovation and bold ideas. Tarang Amin, the chairman and CEO of e.l.f., echoed this sentiment, praising Rhode's ability to break beauty barriers and aligning with e.l.f. Beauty's vision.
The acquisition of Rhode is expected to close in the second quarter of 2026. The brand plans to launch in Sephora stores across North America and the U.K. before the end of 2025, expanding from its direct-to-consumer model. This move will further increase Rhode's accessibility and reach.
The success of Rhode and its acquisition by e.l.f. Beauty highlights the growing trend of celebrity-founded beauty brands making a significant impact on the industry. Other notable examples include Rihanna's Fenty Beauty and Selena Gomez's Rare Beauty. These brands leverage the founders' personal brands and social media presence to connect with consumers and build loyal communities. In 2023, celebrity beauty brands generated over $1 billion in sales, according to a Nielsen IQ report.
The Rhode acquisition signifies renewed momentum in the M&A landscape, particularly in the celebrity-owned segment. It demonstrates the market's appetite for digitally native, community-driven brands. The $1 billion valuation reflects Rhode's strong brand equity and its potential for future growth.
