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.

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