By coinnews 
00:00 Brad Smith
Model and businesswoman, Hailey Bieber, joining the coveted billionaires club. E.l.f. Beauty, Elf Beauty announcing a deal to acquire Bieber’s skincare brand, Rhode, for $1 billion. The deal includes $800 million in cash and stock, and additional $200 million tied to the brand’s performance over the next three years. Still with me, we’ve got Yahoo Finance Senior Reporter, Alexandra Canal. I mean, what what does this deal mean for the two entities, especially with a valuation of a billion dollars here?
00:32 Alexandra Canal
Yeah, well, investors certainly seem to like it. We’ve seen Elf shares surge. I think the last I looked, it was up around 25% today. And this comes after Rhode has really made a lot of inroads in the beauty industry. It’s acquired $212 million in net sales from just 10 products. The CEO of Elf calling this unprecedented. And when I first heard this news, I was a little surprised because Elf Beauty, it’s known as this affordable beauty brand overall. But this is its first foray into this premium category. So something that investors seem to be liking at this point. And we know that celebrity-backed beauty ventures, they’ve attracted some very high valuations. You have Fenty Beauty by Rihanna that was estimated at a valuation of around $2.8 billion, according to Forbes. We have Selena Gomez’s Rare Beauty that’s estimated at around $1 billion. Kim Kardashian launched a new skin brand after Cody acquired a 20% stake in her previous KKW beauty brand for $200 million. We have Ariana Grande. So there’s a lot of celebrity-backed brands out there that seem to be doing well. But it’s also a category that, you know, it’s very tough to break through, especially with trends that constantly change within the beauty space. Skincare right now seems to be the biggest thing. Hailey Bieber is known as having beautiful skin. I have a lot of friends that use her products, they love them. I have not used any Rhode products at this point, but now I’m curious. And maybe it’ll be a little, little cheaper, maybe a little more inexpensive. We’ll see how Elf does with this brand.
02:43 Brad Smith
Well, she’s going to stay on as founder and chief creative officer, we do know, and ahead of innovation at Rhode. Do you think the trend of these celebrity founders is is here to stay, especially as they’re all doing, as we discuss on this show all the time, and making sure that you’ve got streams of income?
03:06 Alexandra Canal
Mhm. That seems to be the playbook, right? You build this brand with your name, you sell it direct to consumer, maybe you get into Sephora, and then you have a big company like Cody or Elf come in and acquire a stake or maybe even buy out the brand full stop. So yes, I do think this is something that’s going to continue, and especially in the era of influencing, TikTok, Instagram, you can send out these products to folks to try on, and do get ready with me videos, and it’s just taken off. So I definitely think it’s going to stay.
03:42 Brad Smith
The GRWM videos. Yeah.
03:48 Alexandra Canal
Yes. We got to do one, Brad.
03:51 Brad Smith
Look, I mean, Get ready with me into host wealth. I put makeup on every day. Maybe I should start a makeup line. Exactly.
04:04 Alexandra Canal
Yeah, you should! We have to know. I I would buy it. Let’s do it. Oh, done. Got one buyer already. First customer. Thanks so much. Appreciate it.
04:26 Brad Smith
Appreciate it.