Wanna Know What $1 Billion Looks Like?
Wanna Know What $1 Billion Looks Like?
This headline has been flooding your feed for the past couple of days, hasn’t it?
Hailey Bieber Just Sold Rhode for $1 Billion
When I first read it, I thought this deal was a bit unorthodox, so as a talent manager who handles acquisitions, I decided to take a couple of days to dig a bit deeper to get the full scoop (and what no one dares to talk about)…
Let’s start off with the basics: 100% of Rhode was sold to e.l.f. Beauty in a deal valued at a staggering $1 billion. And yeah although the headlines are buzzing with the number, what’s getting missed is why this deal is so unique and oh-so-smart.
Let’s start with the structure:
$600 million in cash
$200 million in e.l.f. stock
$200 million contingent on Rhode hitting growth goals over the next three years.
But the real headline? This wasn’t a partial buyout or majority-stake deal. Hailey sold 100% of Rhode (ps: she owned about 51% of Rhode at time of sale). That alone sets this deal apart. For context, it’s actually not common for celebrities to sell their entire brand. In fact, most hold on to at least a minority stake for future upside, brand control, or long-term alignment.
Take the Gen-Z queen of cosmetics herself, Kylie Jenner, for example. When she sold Kylie Cosmetics to COTY in 2019, she sold 51% of the company for $600 million, keeping the remaining 49% and continuing her involvement. Or George Clooney, who co-founded Casamigos Tequila and sold it to Diageo in a deal worth up to $1 billion. While we don’t know exact post-deal ownership, it’s widely understood he and his partners maintained some form of ongoing involvement and backend participation.
That’s what makes Hailey’s deal with e.l.f. so beautifully bizarre. She sold the whole.damn.thing.
What she did negotiate, however, was to remain the Chief Creative Officer and Head of Innovation which effectively secures her a creative role without carrying any equity risk. She stays visible, relevant, and in the mix but no longer holds ownership. It’s a rare full exit with ongoing influence.
And she timed it perfectly. Rhode is only two years old which in the beauty business means babbbyyyyyyyyyy. The product lineup is still lean. The buzz is still fresh. She sold at peak cultural and consumer momentum.
If you’re a founder or someone that’s interested in creating their own brand, then listen up bc there’s a bigger lesson here: Equity matters. If you’re doing the work, you HAVE to negotiate real ownership. Don’t just license your name or take a small percentage for show.
But just as important is knowing when to evolve. Not every brand needs to be held forever. A well-timed exit can be just as powerful as scaling long-term (and dare I say, if not more so).
Hailey was a strategic goddess here. This week she officially locked in her generational wealth, kept her creative role, and handed off the back-end scaling to a proven player in beauty retail.
What do you think? Was it too soon to sell? Or the perfect timing? Hit reply or drop a comment, I’d love to hear your take.
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XX Idalia