Elf Beauty Acquires Hailey Bieber’s Rhode for $1 Billion
Published: June 2, 2025
By Bloomberg
In a significant move, Elf Beauty Inc. has agreed to acquire Hailey Bieber’s cosmetics line, Rhode, for an impressive $1 billion. Known for its signature glossy and dewy skin products, the acquisition aims to revitalize Elf’s portfolio and mark a resurgence in celebrity-driven beauty brands.
This deal, which includes $800 million in cash and stock, positions Rhode as a high-end player in Elf’s typically budget-friendly lineup, where average prices hover around $6.50. Rhode’s products, including its popular Pocket Blush and Glazing Milk, average about $29, placing them at a premium tier.
The acquisition arrives during a challenging time for celebrity-backed beauty, as consumer fatigue sets in, and inflation pressures impact spending. Despite initial success, brands led by influencers, including Selena Gomez’s Rare Beauty, have explored exit strategies due to dwindling market enthusiasm. However, Rhode’s growth signals a potential turnaround trend, aiming to reach broader audiences through retail partnerships, including an upcoming launch in Sephora across the U.S., Canada, and the U.K.
Bieber will assume the role of Rhode’s chief creative officer, focusing on innovative expansion strategies. For Elf, which boasts a solid track record of engaging Gen Z consumers, this acquisition presents a chance to maintain momentum and diversify offerings.
Yet, the significant investment carries risks largely tied to Bieber’s sustained relevance in the beauty space. Analysts foresee potential growth hurdles amidst a cooling beauty market and inflationary pressures, including anticipated product price hikes due to tariffs.
As the landscape of celebrity beauty evolves, Elf’s bold move could either reinvigorate consumers’ appetite for influencer-led brands or demonstrate the difficulties of sustaining such trends in a competitive market.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
