Context:

Hailey Bieber's makeup brand, Rhode, has been sold to e.l.f. Beauty in a landmark deal valued at up to $1 billion, with $800 million paid upfront and an additional $200 million contingent on future sales. Since its founding in 2022, Rhode has achieved rapid growth, reporting over $200 million in net sales in the past year, driven by its popularity on social media platforms like TikTok. The acquisition is projected to finalize later this year, with Hailey Bieber retaining her role as chief creative officer, ensuring consistency in brand direction. The collaboration with e.l.f. Beauty is anticipated to enhance global distribution and product innovation, capitalizing on the brand's established digital popularity. This venture aligns with a broader trend among celebrities like Rihanna and Kylie Jenner in leveraging their influence to build successful beauty enterprises.

Dive Deeper:

• Rhode, co-founded by Hailey Bieber in 2022, has experienced significant growth with over $200 million in net sales in just a year, partly due to its strong online presence and viral social media marketing, particularly on TikTok.

• The acquisition deal is structured with an initial payment of $800 million in cash and stock, with a potential additional payout of $200 million based on future sales performance, reflecting confidence in the brand's continued success.

• Hailey Bieber will continue as the chief creative officer post-acquisition, ensuring the brand's creative vision remains intact, while e.l.f. Beauty plans to leverage its resources to expand Rhode's global reach and product offerings.

• The acquisition reflects a broader industry trend where celebrities like Rihanna and Kylie Jenner have successfully capitalized on their personal brands to create lucrative beauty companies, with sales in the sector exceeding $1 billion in 2023.

• e.l.f. Beauty, known for its focus on eyes, lips, and face products, sees the acquisition as a strategic move to accelerate Rhode's growth trajectory, describing the brand as ready for 'rocketship growth' due to its strong market presence and innovative product line.

• Plans are underway to introduce Rhode products to major retail outlets like Sephora in the US and UK, which is expected to further drive sales and brand visibility.

• Hailey Bieber expressed her surprise and enthusiasm over Rhode's success, acknowledging that the brand's achievements have surpassed her expectations and expressing excitement about the new opportunities the partnership with e.l.f. Beauty will unlock.