Hailey Bieber’s Rhode Exits to e.l.f. Beauty in $1 Billion Deal — But Wall Street Isn’t Celebrating(Yet)

Hailey Bieber’s skincare brand Rhode has been acquired by e.l.f. Beauty in a $1 billion deal, marking the company’s largest acquisition to date and a bold entry into the prestige beauty market. The deal includes $800M in cash and stock, plus a $200M earnout based on performance.

Despite Rhode’s strong Gen Z following and impressive $212M in annual revenue, e.l.f.’s shares closed down after the announcement — signaling investor caution around the high valuation and ongoing macro challenges like tariffs and shifting consumer demand.

Still, the deal underscores a larger trend:

Celebrity-led brands that combine real product credibility, digital-native strategy, and direct customer relationships are now some of the most valuable assets in beauty.

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