Hailey Bieber’s Blockbuster Deal

Let’s begin this post with me being a petty ass bitch because I would like to direct you to an article in the Daily Mail last August about how Justin Bieber was desperate for cash because a bullsh-t source said that Hailey was blowing through millions of dollars of his money. It was a dumbass report, whoever their source was, if they even had a source, clearly didn’t know what the f-ck they were talking about because Rhode, Hailey’s beauty brand, has been doing exceptionally well since its launch in 2022. 

Back in October, I wrote about how Rhode was set to exceed $100 million in revenue in 2024, with a smart direct-to-consumer sales strategy and a solid product line. I went to a Rhode event in Toronto in 2023 and as I posted at the time, I was impressed with her commitment and how she represented her company. And then I started using the products – the products are GOOD. The barrier cream is great. The peptide lip treatment is excellent. So she knows what she’s doing…and now it's paid off, HUGE. 

The timing, also, could not be better. And the timing makes more sense now because, of course, Hailey covers the current issue of American Vogue, considered the fashion bible, the most coveted cover of them all, especially if you’re a model. And +++++ if you’re a model with a beauty line. 

The cover story dropped a week ago and was obviously an appetiser for the main event, the big news, the lucrative news: 

Rhode has been acquired by e.l.f. Beauty for $1 billion. Which, of course, is where this was always headed. The company did an outstanding job in its first few years with online sales, not expanding too aggressively, allowing the brand to build its reputation steadily among consumers. From there, it was time to scale, to produce more products and get them to more consumers. So this is what she’s been working on for the last several months – a deal like this doesn’t happen overnight, it doesn’t happen in a matter of weeks. But it does happen, perhaps, with the kind of lead time you need for a magazine like Vogue. So whoever engineered the rollout of the announcement, give them a raise. This is exactly the right kind of media and marketing coordination you want to meet this moment. It’s a massive win for Hailey and it puts her in rare company. As The Hollywood Reporter noted, the Rhode deal is “one of the biggest for a celebrity-backed company since Ryan Reynolds’ Mint Mobile sold to T-Mobile for $1.3 billion in 2023.” 

And it makes her the wealthiest Bieber and Baldwin as, according to THR, the deal “is comprised of a $600 million cash payment, $200 million in shares of e.l.f. stock to Rhode’s existing equity holders, and a $200 million earnout that would be payable over three years based on hitting performance goals”. Plus, she’ll continue to earn in her role with the company as chief creative officer and head of innovation. 

So if she wants to blow through millions? Fine. They were her own millions anyway and now she has so many more of them. 

We're Squawking about Hailey's e.l.f. deal today. Join us! (App link here)

Attached: Hailey out in LA last night.