Rhode x e.l.f. The Billion-Dollar Beauty Deal, Explained

Inside the billion-dollar Rhode beauty deal that’s left the industry stunned—and what it says about the future of celebrity brands.

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By Jenny Smith Mattfeldt | Published June 18, 2025

Courtesy of @haileybieber via Instagram

The billion-dollar headline: e.l.f. Beauty has officially acquired Rhode, the minimalist skincare brand founded by Hailey Bieber, for $800 million in cash and stock, with the potential for an additional $200 million over the next three years based on performance milestones. The deal, announced May 28, is more than just another celebrity brand acquisition—it’s a staggering benchmark for where the beauty industry is headed, made even more remarkable by the fact that Rhode was founded just three years ago.

To put it in perspective: major names like Rare Beauty and even Kylie Cosmetics have struggled to land comparable deals. The idea that an influencer-led brand, launched in 2022 with only a handful of SKUs, could exit for a potential billion-dollar valuation in this economic climate is nothing short of jaw-dropping. Industry insiders are calling it one of the most surprising beauty exits of the decade.

So what made Rhode different? In a saturated market flooded with celebrity and influencer names, Rhode managed to carve out a distinct identity by embracing a less-is-more philosophy. Its approach is almost reminiscent of a Korean skincare line—not only in product inspiration, like the milky toner—but also in its minimalistic product lineup and sleek, neutral packaging. From the Peptide Lip Treatment to the now-signature Glazing Milk, Rhode’s tightly edited SKUs became cultural fixtures—going viral on TikTok and selling out frequently. Still, some wonder if the vitality of the brand is tied more to Hailey herself than to the products.

The buzz hasn’t come without critique. While Hailey Bieber has emerged as the 'it girl' of this pared-down, high-gloss, clean girl aesthetic, not everyone is convinced by the formulas. Many consumers have argued that Rhode’s products don’t justify their price tags, citing underwhelming results or better-performing alternatives at lower price points—particularly pointing to the thin, watery texture of the Glazing Milk and the sometimes gritty feel of the Peptide Lip Treatments. It raises the question: is the obsession really about the products, or is it about the lifestyle they represent? Is it the lip treatment you want—or the mirror selfie with the lip peptide phone-case combo you saw on her Instagram? Is it the dewy essence—or the skin that looks like Hailey’s, which, in reality, likely owes just as much to regular facials, lymphatic massage, dermatologists, and injectables as it does to any one serum? In that sense, Rhode’s cultural capital may have outpaced its perceived product performance.

Courtesy of Yana Yatsuk for Rhode

Still, the numbers are difficult to ignore. Tarang Amin, CEO of e.l.f. Beauty, told Vogue they were incredibly impressed: "She has gone from zero to $212 million in net sales in less than three years, direct-to-consumer only, with only 10 products." That kind of scale, accomplished without being in retail stores just purely online, is exactly what makes the acquisition so strategic. With e.l.f.’s infrastructure and long-standing retail relationships (with stores like Ulta), the brand now has the potential to expand both its product line and its distribution footprint dramatically.

Rhode’s resonance extends beyond the bathroom shelf. Its visual identity, creative direction, and cultural fluency positioned it as more than a skincare brand. It became a mood, a lifestyle, and, most critically, a business that knew exactly how to market aspiration. It was a well-executed strategy in a competitive landscape.

And now, under the wing of e.l.f.—a company known for democratizing prestige beauty—Rhode is poised to scale globally. Whether the brand will maintain its momentum remains to be seen, but its acquisition marks a turning point in how celebrity-founded ventures are evaluated. In a market where hype doesn’t always translate to longevity, Rhode’s sale is a case study worth watching to see how the billion-dollar investment plays out.

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