Hailey Bieber attends the 2025 Met Gala in New York on May 5. Bieber's makeup and skincare brand, Rhode, is being snapped up by Elf Beauty for about $1 billion US, giving the budget cosmetic retailer access to a celebrity-endorsed product line that has become hugely popular among Gen Z and millennials. Getty Images
Elf Beauty is shaking up the beauty world by snapping up Hailey Bieber’s hit makeup brand, Rhode, for nearly $1 billion. This deal signals a bold leap from Elf’s budget-friendly roots into the fast-growing prestige beauty market.
Rhode launched in 2022 and quickly blew up, thanks to viral TikTok hits like its $18 peptide lip treatments. The brand thrives on Bieber’s huge social media following, selling mainly through its website and pop-up shops—no big retailers yet.
Elf Beauty is known for affordable products, priced between $2 and $3. The brand is sold at Walmart, Target, Ulta, and major Canadian chains. Now, with Rhode, Elf gains a stylish, celebrity-backed line that resonates with younger shoppers.
The deal includes $800 million in cash and stock for Rhode shareholders, plus up to $200 million more if the brand hits performance targets. This marks Elf’s biggest acquisition, following last year’s $355 million skincare buyout.
Elf CEO Tarang Amin said Rhode will help the company “make the best of prestige accessible”. It will diversify its offerings amid soft demand in the mass market. Inflation and changing shopper habits have slowed Elf’s core business.
Bieber, 28, will stay on as founder and become a strategic advisor. She’s excited about the brand’s upcoming launch in Sephora stores across the U.S., Canada, and the U.K. this fall.
Earlier reports said Bieber was exploring a sale, and now the deal is set to close in Elf’s fiscal Q2 2026.
After a tough year with shares dropping 20%, Elf is betting big on Rhode. It aims to win over new customers with cool, celebrity-driven products. This $1 billion move could reshape Elf’s future—and the prestige beauty game.
