Hailey Bieber’s Rhode Brand Acquired by e.l.f. Beauty for $1 Billion
Hailey Bieber is making significant strides toward expanding her influence in the beauty industry. The 28-year-old entrepreneur has officially sold her skincare company, Rhode, to e.l.f. Beauty in a deal valued at $1 billion, as announced in a press release on May 28.
The transaction comprises an $800 million payment in cash and equity shares to Rhode’s founders-CEO Sever Vlahos, Bieber herself, and co-founders Lauren Ratner and Michael D. Ratner. Additionally, there is a potential earnout of $200 million contingent upon the brand’s growth over the next three years, according to the official statement.
Following the acquisition, Hailey Bieber will continue to serve as Chief Creative Officer and Head of Innovation for Rhode. She will also act as a strategic marketing consultant for e.l.f. Beauty, reflecting her ongoing commitment to the brand’s development. Bieber shared her excitement about the deal, emphasizing her achievements since launching Rhode in 2022 and her enthusiasm for the partnership with e.l.f.
“My aspirations for Rhode have always been ambitious, and my primary goal is to bring the brand to new markets, communities, and demographics worldwide,” Bieber expressed in a heartfelt Instagram post on May 28. “Partnering with e.l.f. Beauty marks an exciting new chapter, and I couldn’t be more proud to be part of this journey.”
Aligning Visions: A Partnership Rooted in Innovation
Describing Rhode as a “like-minded innovator with a bold vision to challenge traditional beauty standards,” the brand highlighted its shared values with e.l.f. Beauty. The company expressed enthusiasm about the future, noting how Rhode’s innovative approach aligns perfectly with e.l.f.’s mission to revolutionize the cosmetics industry.
“We see Rhode as a dynamic brand poised for rapid growth, and its ability to challenge beauty norms makes it an ideal addition to our portfolio,” stated Tarang Amin, CEO and Chairman of e.l.f. Beauty. “This partnership will enable Rhode to reach new heights and accelerate its expansion.”
Celebrating the Journey and Future Prospects
Hailey Bieber expressed her gratitude to the Rhode team, acknowledging their pivotal role in the brand’s success. “Thank you to everyone who has supported and helped build Rhode over the past few years. Your dedication has been instrumental, and I look forward to what we will accomplish together in this next phase,” she said.
Lauren Ratner echoed this sentiment, sharing her reflections on the journey. “Building Rhode has been one of the most rewarding experiences of my life. Thank you to our loyal community for your unwavering support. We’re excited to reveal what’s coming next,” she wrote on her own Instagram account.
What This Means for the Beauty Industry
The acquisition signals a broader trend of major beauty conglomerates investing in emerging brands led by influential entrepreneurs. e.l.f. Beauty’s move to acquire Rhode underscores its strategy to diversify and innovate within the competitive cosmetics landscape. The company anticipates that Rhode’s unique positioning and Bieber’s celebrity influence will drive substantial growth, with projections estimating the brand could reach several billion dollars in valuation within the next few years.
e.l.f. Beauty’s Growth Strategy
e.l.f. has been actively expanding its portfolio through strategic acquisitions and partnerships. The company’s focus on inclusive, affordable, and innovative beauty solutions aligns with Rhode’s ethos, making this partnership a natural fit. Industry analysts predict that this collaboration will accelerate Rhode’s global reach, leveraging e.l.f.’s extensive distribution channels and marketing expertise.
Celebrity and Influencer Earnings in the Digital Age
In recent years, the earning potential for celebrities and social media influencers has skyrocketed, with many generating millions through various platforms. For example, some influencers have reported annual earnings exceeding $10 million from a combination of brand deals, content creation, and direct sales. Notable cases include:
- Sophie Rain, an OnlyFans creator, revealed she earned over $43 million in a single year, with a peak monthly income of $4.7 million from a single subscriber.
- JoJo Siwa, a former “Dance Moms” star, disclosed earning six figures monthly from YouTube and posting hundreds of times daily on Snapchat to maintain her influence.
- Chris Olsen, a TikTok personality, estimated his net worth to be over seven figures, thanks to brand collaborations and content monetization.
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Other creators, like Lily Phillips and Markell Washington, have also reported earning millions from platforms like OnlyFans and YouTube, demonstrating the lucrative opportunities available in the digital content space.
Emerging Trends in Influencer Income Streams
From subscription-based platforms to sponsored content, digital creators are diversifying their revenue sources. For instance, ASMR artists like King Caitlin and Makayla Samountry have earned thousands of dollars monthly through TikTok, YouTube, and OnlyFans, often with relatively modest follower counts. Similarly, influencers with niche audiences are capitalizing on brand partnerships, with some earning tens of thousands from a single sponsored post.
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