• Hailey Bieber sells her brand Rhode to e.l.f. Beauty in a deal valued at $1 billion.
• The initial payment is $800 million in cash and stock, with a potential $200 million based on sales performance.
• Rhode reported $200 million in net sales in the last year and plans to expand its distribution to Sephora.
• Bieber will remain involved as chief creative officer and strategic adviser post-sale.
• This acquisition aligns with a growing trend of celebrity-owned beauty brands generating significant revenue.

Hailey Bieber has successfully sold her skincare and makeup brand Rhode to e.l.f. Beauty in a deal valued at up to $1 billion. The deal includes an immediate payment of $800 million in cash and stock, with an additional $200 million contingent on future sales performance, according to BBC, Indiatimes, and HuffPost.

Founded in 2022, Rhode has seen impressive growth, achieving $200 million in net sales within a year, partially driven by viral popularity on social media platforms like TikTok, particularly for its “peptide lip treatments” and pocket blush products. The acquisition marks a significant milestone in the landscape of celebrity beauty brands which generated over $1 billion in total sales in 2023, as per Indiatimes and HuffPost.

Following the sale, Hailey Bieber will continue her involvement with Rhode as the chief creative officer and plans to guide the brand’s innovative future. She expressed excitement about this chapter on social media, stating, "Our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community," according to BBC and HuffPost.

Industry experts have noted that despite Rhode's success, the timing of the sale may raise questions regarding its future potential. Speculations have connected Hailey's decision to the financial concerns surrounding her husband, Justin Bieber, who has faced challenges in his touring career, leading to rumors that this move might assist in alleviating their financial situation. Reports indicate that Justin owes over $8 million to a former manager, according to Indiatimes and Indiatimes.

The deal not only signifies a new venture for Hailey Bieber and her brand but also positions e.l.f. Beauty to diversify its product offerings amid rising costs and competition in the beauty market. CEO Tarang Amin praised Rhode's rapid growth, noting their achievement of $212 million in direct-to-consumer sales with a limited product range, according to HuffPost and Indiatimes.