Mergers & Acquisitions: When e.l.f. Bought Rhode

You probably saw the news that e.l.f. Cosmetics bought Hailey Bieber’s skincare brand, Rhode, for up to $1 billion. That’s a huge move, but what does it actually mean? Let’s break it down.

Merger vs. Acquisition: What’s the Difference?

• Merger: Two companies of similar size join together to become one.

• Acquisition: A bigger company buys a smaller one. That’s what happened here—e.l.f. is larger, and now Rhode belongs to them.

  
  

So, the e.l.f. + Rhode deal is an acquisition.

Why Companies Do This

Yuma Who. (2025, May 31). This article gives a closer look at the acquisition that happened between Rhode and elf. Linkedin.com. https://www.linkedin.com/pulse/elf-beauty-acquires-rhode-what-1-billion-deal-means-world-yuma-who-vqncc/

1. Bigger Audience, More Sales. e.l.f. is all makeup. Rhode is all skincare. e.l.f. + Rhode = makeup fans and skincare fans combine. Both brands grow faster!

2. Sharing Resources Saves Money. Instead of paying two separate factories, shipping, or marketing teams, they can combine resources and cut costs.

3. Faster Growth. e.l.f. wanted to expand into skincare. Buying Rhode was way quicker than building a whole new brand from scratch.

4. Stronger Against Competition. With Rhode, e.l.f. can take on larger competitors like L’Oréal or Estée Lauder more effectively.

Why Hailey Bieber Sold Rhode

Mohammed, H. (2024, June 14). Hailey Bieber Stars in Rhode’s New Lip Treatment, Phone Case Campaign. WWD. https://wwd.com/beauty-industry-news/color-cosmetics/hailey-bieber-rhodes-new-lip-treatment-phone-case-1236438266/

Rhode was doing really well—it pulled in $212 million in just one year. But compared to e.l.f., it was still small.

Selling gave Hailey:

• Worldwide Reach: e.l.f. already has retail connections, so Rhode goes from online-only to store shelves everywhere.

• Big Payday: The deal was worth up to $1 billion. (That's a LOT of money!)

• Creative Control: Hailey stayed on as Chief Creative Officer, so Rhode can keep its style and “vibe.”

• Smart Timing: Selling when the brand was popular and making strong sales, she sold while the brand's value is high.

Why This Could Be Risky

1. Culture Clash: Rhode’s chill, “clean girl” aesthetic might not totally fit e.l.f.’s bold, TikTok-heavy marketing style.

2. Job Cuts: When companies overlap in roles, some people lose their jobs. It happens more often than you think.

3. Money on the Line: If Rhode’s sales slow down, e.l.f. could lose millions from this deal.

4. Losing Identity: Rhode could lose its unique “Hailey” feel and start blending in with e.l.f.’s bigger brand image.

Big Takeaway

Mergers and acquisitions are kind of like relationships!

• If it works out --> both sides grow stronger together.

• If it doesn’t --> Rhode risks losing its "vibe" and e.l.f. risks losing millions.

For now, the e.l.f. + Rhode deal is a big bet in the beauty industry.

And as always, stay cozy and performative 🍵🥀.