e.l.f. Beauty’s $1B Acquisition of Rhode: What It Signals for Creator-Led Brands

In one of the most buzz-worthy moves in beauty this year, e.l.f. Beauty announced plans to acquire Hailey Bieber’s skincare brand, Rhode, for up to $1 billion. The news, reported by Adweek, marks a defining moment in the evolution of influencer-led businesses and offers major takeaways for brands and marketers paying attention to the creator economy.

Who Is Rhode, and Why Does It Matter?

Launched in 2022 by Hailey Bieber, Rhode is a Gen Z-favorite skincare brand known for minimalist packaging, strong community engagement, and viral products like the Peptide Lip Treatment and Glazing Milk. Rhode rapidly scaled from a direct-to-consumer brand into a powerhouse that generated over $100 million in net revenue in 2023, according to Adweek.

The brand’s recent partnership with Sephora further elevated its reach, proving its ability to perform in both digital and retail environments.

Why e.l.f. Beauty Made This Move

e.l.f. is traditionally known for its affordable, high-performance cosmetics. With this acquisition, the company is making a clear strategic expansion into prestige skincare. The deal includes $800 million in cash and stock, with a potential $200 million earn-out depending on future performance.

Rhode will continue to operate independently, with Hailey Bieber staying on as Chief Creative Officer and Head of Innovation. That continuity ensures the brand retains its original DNA, rooted in authenticity and creator-led storytelling.

What This Means for the Creator Economy

This acquisition is more than just a big business deal. It’s validation of the long-term value of creator-founded brands. It signals to investors, CPG giants, and marketers alike that creators aren’t just marketers, they’re modern-day founders with the power to build scalable, culturally relevant businesses.

Brands that want to thrive in the next decade will need to:

• Think beyond traditional endorsements
• Invest in creators as co-builders and collaborators
• Design go-to-market strategies that harness community and storytelling from day one

At Captiv8, we’ve seen firsthand how creator-led brands can scale with the right combination of influence, insight, and infrastructure. e.l.f.’s investment in Rhode is a powerful case study, and it likely won’t be the last.

Key Takeaways for Marketers

• Authenticity wins: Consumers trust creators like Hailey Bieber who have a personal stake in the products they promote.
• Creators are founders: Today’s influencers aren’t just brand ambassadors, they’re building category-leading businesses.
• Prestige is accessible: Rhode’s success proves that high-quality, luxury-feeling products can still connect with younger audiences, especially when packaged with cultural relevance.
• Partnerships matter: Strategic retail moves (like Sephora) plus consistent social storytelling fuel both brand credibility and growth.

About Captiv8

Captiv8 is the leading influencer marketing platform that empowers brands to connect with consumers through authentic creator partnerships. By leveraging cutting-edge technology and data-driven insights, Captiv8 helps brands drive engagement, loyalty, and sales in the ever-evolving social landscape. Rated the #1 Best Influencer Marketing Platform by the Influencer Marketing Awards, Captiv8 is also the enterprise marketer’s choice influencer tool. Captiv8 is ranked #1 influencer marketing software for Enterprise Marketers, and #1 best overall influencer marketing platform by G2.