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E.l.f. Beauty makes $1 billion move for Hailey Bieber’s Rhode brand Cruelty-free makeup pioneer e.l.f. Beauty has signed a definitive agreement to buy Hailey Bieber’s two-year-old skincare and makeup line, Rhode, in a deal valued at up to $1 billion, positioning the budget favorite for a decisive leap into the prestige market. A cash-and-stock package worth roughly $800 million upfront and performance earn-outs of $200 million Bloomberg reporting indicates the acquisition will be funded through $400 million in cash, $400 million in e.l.f. shares, and contingent payments tied to Rhode’s future sales milestones. Why e.l.f. is paying prestige pricing for Rhode • Access to a rapidly scaling, social-media-native brand that crossed an estimated $100 million in sales in 2024. • Hailey Bieber’s 52 million-plus Instagram following brings top-of-funnel reach that dwarfs paid advertising. • Rhode’s minimalist aesthetic and science-backed formulas fill a gap in e.l.f.’s portfolio between mass-market color cosmetics and its newer e.l.f. SKIN line. Strategy: From “eyes lips face” to whole-routine beauty E.l.f. has outperformed larger rivals by combining viral TikTok marketing with aggressive pricing. Rhode extends that playbook to premium creams, serums, and lip treatments while allowing the company to court older, higher-income shoppers without alienating its Gen Z base. Stock and market reaction Analysts expect the all-channel distribution muscle of e.l.f.—Ulta Beauty, Target, Amazon, Boots, and a recently announced rollout in the Netherlands and Belgium—to push Rhode global within 12 months. Early commentary projects low-double-digit EPS dilution in FY 2026 followed by accretion as synergies kick in. Next milestones to watch • Closing, targeted for Q3 2025, pending customary regulatory approvals. • Integration roadmap and influencer retention strategy to be outlined on today’s earnings call (4:30 p.m. ET). • Product pipeline reveal at Rhode x e.l.f. virtual event this summer. Bottom line By snapping up Rhode, e.l.f. Beauty is betting that the intersection of celebrity influence, DTC speed, and value-driven retail can redefine “affordable luxury” in skincare. Investors and beauty fans alike will be watching whether the company can scale Bieber’s minimalist ethos without losing the brand’s cool factor—or its cult-like community.