On April 1, we printed a reasonably snarky article casting doubt on a viral rumor that Hailey Bieber was on the verge of promoting her skincare model, Rhode, at a $1.44 billion valuation. We had been skeptical as a result of the rumor got here from a viral Twitter account tied to an Indian affiliate of CNBC, with no credible sourcing. After a little bit of digging, I theorized the tweet had jumbled up a totally unrelated information merchandise about how Rhode’s newly appointed CEO beforehand led The Sincere Firm by a $1.44 billion IPO. Possible a traditional ChatGPT viral article mashup mistake.
Because it turned out… simply two days later, Reuters printed a legitimately sourced report stating that Hailey was the truth is exploring a possible sale of Rhode, and that the corporate “might be value greater than $1 billion.”
Quick ahead to in the present day, and it is official: Hailey Bieber has struck a deal to promote Rhode to e.l.f. Magnificence for $1 billion. The transaction consists of $600 million in money, $200 million in e.l.f. inventory, and as much as $200 million in further earnouts primarily based on the model’s future efficiency. We’ll break down how a lot Hailey will take house beneath.
From Glazed Pores and skin to Generational Wealth
Launched in June 2022 with simply three merchandise — a peptide serum, a barrier cream, and a lip remedy, Rhode rapidly exploded into one of the crucial talked-about skincare manufacturers on the earth. Hailey’s “glazed donut pores and skin” aesthetic went viral on TikTok, and product sellouts turned routine. In its first 11 days, Rhode reportedly crossed the eight-figure income threshold. Lower than three years later, the model was producing over $212 million in annual internet gross sales with solely 10 merchandise, all bought direct-to-consumer.
This was not simply one other movie star self-importance model. Rhode had actual traction, actual income, and, as of final week, actual shelf house. The model launched in Sephora in america and Canada in Could 2025, with a United Kingdom rollout deliberate by the top of the 12 months. The timing of the e.l.f. acquisition aligns completely with Rhode’s retail growth and provides e.l.f. a fast-growing, Gen Z–centered model simply because it appears to cut back its reliance on China-based manufacturing and transfer upmarket.
So, How A lot Did Hailey Make?
The precise particulars of Hailey’s fairness stake in Rhode have by no means been publicly disclosed, however a number of experiences recommend she retained a big share. If she owned between 50% and 70%, her pre-tax payout from the $1 billion deal would fall between $500 million and $700 million. That vary consists of the $800 million in upfront money and inventory, plus the potential $200 million earnout if Rhode hits its progress targets over the following three years.
Let’s speak about her tax obligations. Hailey lives in California, so she’ll pay each federal and state taxes, together with the 20% federal capital positive factors price, the three.8% internet funding earnings tax, and California’s prime marginal price of 14.3%. That provides as much as an efficient tax price of roughly 38.1% on long-term capital positive factors.
Primarily based on that, a 70% stake would internet her round $433 million after taxes from a $700 million gross payout. A 50% stake would yield roughly $309 million after taxes from a $500 million gross. Even with out the earnout, her after-tax haul from the $800 million upfront cost alone would vary from $247 million to $346 million, relying on her fairness share.
Whichever share you utilize, she is nearly definitely immediately richer than her husband, Justin Bieber, who we at present estimate has a internet value of $200 million. By our conservative estimate, Hailey Bieber’s internet value is now $300 million.