Earlier this week, beauty conglomerate E.l.f announced their decision to acquire Hailey Bieber's entrepreneurial it-baby, Rhode for a sweeping $1 billion — emphasis on the 'B'. As shared by Hailey in her deeply gratitude-proofed announcement, "this is only the beginning" and she will be continuing to "grow the brand" as Chief Creative Officer and Head of Innovation.
Now while the internet was largely resounding with awe and applause around the model becoming the 'billionaire spouse' between her and hubby Justin Bieber, finance influencers have swiftly rushed to decode the deal and what the billion-feat actually represents, IRL. Haley Sacks, better known as Mrs. Dow Jones, one among the trailblazers for the aforementioned influencer-niche, has got your back even if the world of top-tier finance is as good as gibberish to you.
Well for starters, one thing's for sure — Hailey is indeed the "richer Bieber" now. Now on to the specifics, the billion-dollar deal is no misnomer. But as per Jones it breaks down to $800 million in cash and stock with up to $200 million in bonuses. The catch with the $200 million but, is it only materialises if the brand meets its sales targets. Not just this, the bonuses will be fairly split three-ways, between Hailey and her co-founders Lauren and Michael D. Ratner. Another little detail which slims the fat stack pickings? Hailey has to pay 38% capital gains tax in California. Now considering all goes well and Rhode continues its smooth as butter run in sales — which seemingly shouldn't be much of a stretch despite the milestone move — at BEST Hailey's 'pay day' as Jones puts it, will be somewhere around $435 million. This may not be a billion with a 'B' but that or anything in its vicinity, is still a fat pay cheque to be taking home.
{{/usCountry}}Well for starters, one thing's for sure — Hailey is indeed the "richer Bieber" now. Now on to the specifics, the billion-dollar deal is no misnomer. But as per Jones it breaks down to $800 million in cash and stock with up to $200 million in bonuses. The catch with the $200 million but, is it only materialises if the brand meets its sales targets. Not just this, the bonuses will be fairly split three-ways, between Hailey and her co-founders Lauren and Michael D. Ratner. Another little detail which slims the fat stack pickings? Hailey has to pay 38% capital gains tax in California. Now considering all goes well and Rhode continues its smooth as butter run in sales — which seemingly shouldn't be much of a stretch despite the milestone move — at BEST Hailey's 'pay day' as Jones puts it, will be somewhere around $435 million. This may not be a billion with a 'B' but that or anything in its vicinity, is still a fat pay cheque to be taking home.
{{/usCountry}}This is also a great time to point out all the unnecessary swimming-against-the-current narratives being pushed by some of the self-proclaimed intelligentsia of the internet.
While it may be easy to dismiss Rhode's skyrocketing success as a juicy by-product of Hailey's pop culture street cred, there have been one too many live examples of celebrities launching entrepreneurial ventures only for them to crash and burn.
Being a cultural asset undoubtedly helps push a brand — and aggressively at that — to the front of ever-rolling feeds. At the time of Rhode's launch, it felt nearly impossible to go a minute without having to see puckered lips and the Gen Z-coded, Glossier-esque-throwback that still are, the 'lip treatment' tubes. But some naysayers have been a little too vocal in pointing out how Rhode's virality has nearly everything to do with Hailey's 'aesthetic' and very little to do with actual performance marketing strategy. But at a time when internet-virality is quite literally the kingpin when it comes to forecasting and actualising a brand's success, pegging the Rhode success story as simply a stroke of nepo-baby luck seems daft.
So is E.l.f's Rhode-takeover simply some genius cultural trend forecasting, or is Hailey truly an entrepreneurial and marketing genius? Only time will tell.