In May 2025, Hailey Bieber, the 28-year-old model and entrepreneur, made headlines with the blockbuster $1 billion sale of her beauty brand, Rhode, to e.l.f. Beauty, marking one of the largest celebrity-backed beauty deals in recent history. Launched in 2022, Rhode skyrocketed to success with its minimalist skincare and makeup line, generating $212 million in net sales in the year ending March 31, 2025. However, the triumph was soon overshadowed by rumors suggesting the sale was orchestrated to settle an alleged $31.5 million debt owed by her husband, pop star Justin Bieber, to his former manager, Scooter Braun. On July 17, 2025, Hailey’s representative firmly shut down these claims, stating, “The historic sale of Rhode is a huge accomplishment for Hailey and is completely separate from her husband and his business affairs.” This denial, echoed across X posts and media outlets, underscored Hailey’s determination to protect her brand’s legacy and her independence as a businesswoman, while highlighting the complexities of celebrity narratives in the public eye.

Rhode’s Meteoric Rise

Hailey Bieber launched Rhode in June 2022, naming it after her middle name and focusing on a curated, affordable skincare line designed to deliver a “glazed donut” aesthetic. Starting with just three products—Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment—the brand quickly expanded to include tinted lip products, blushes, and a viral $38 Lip Case, a silicone iPhone case with a slot for Rhode’s lip products. Its direct-to-consumer model, fueled by Hailey’s 55 million Instagram followers and 15 million TikTok fans, drove $212 million in net sales by March 2025, with products often selling out at pop-up events where fans camped overnight. Rhode’s success earned it the No. 1 spot in Earned Media Value for skincare brands in 2024, with a 367% year-over-year growth, per e.l.f. Beauty’s press release.

The acquisition by e.l.f. Beauty, announced on May 28, 2025, was structured as $600 million in cash, $200 million in e.l.f. stock, and a potential $200 million earnout over three years based on growth targets. Hailey, who co-founded Rhode with Michael D. Ratner and Lauren Ratner, will remain as chief creative officer and head of innovation, also serving as a strategic advisor to e.l.f. Beauty. The deal, which includes a partnership to bring Rhode to Sephora stores in the U.S., Canada, and the U.K., was hailed as a “rocketship” opportunity by e.l.f.’s CEO, Tarang Amin, who praised Hailey’s ability to connect with a young, loyal fanbase. “We found a like-minded disruptor in Rhode,” Amin said, noting its alignment with e.l.f.’s mission to break beauty barriers.

Hailey expressed her excitement on Instagram, writing, “When I launched @rhode in 2022, I always had big dreams for the company, and the most important thing to me is to keep bringing Rhode to more spaces, places, and faces globally.” She told Allure, “This is definitely one of those things being realized. I could never have anticipated that it would happen at this exact time.” The deal’s scale drew comparisons to other celebrity beauty ventures, like Kylie Jenner’s $600 million Coty deal for Kylie Cosmetics and Rihanna’s Fenty Beauty, a multi-billion-dollar brand with LVMH.

The Debt Rumors and Justin Bieber’s Financial Troubles

The celebration of Hailey’s milestone was marred by rumors linking the Rhode sale to Justin Bieber’s alleged financial woes. Reports surfaced in July 2025, primarily from TMZ, claiming Justin owed $31.5 million to Scooter Braun’s former company, Hybe, stemming from unpaid commissions and a $40 million advance for his 2022 Justice World Tour, which he canceled due to health concerns. An audit by PwC reportedly pegged the debt at $26 million to concert promoter AEG, with Braun’s company covering part of it, leading to a $8.8 million dispute. TMZ suggested Justin was delaying payment until the Rhode sale closed, with his share as an investor—estimated at $50 million—potentially covering the debt.

These claims fueled speculation that Hailey sold Rhode to bail out her husband, with some outlets, like Mamamia, alleging Justin’s spending had spiraled, citing a $300,000 restaurant bill at Coachella and maintenance of six homes. Social media amplified the narrative, with X users urging Hailey to divorce Justin, claiming he was “bringing her down.” A Daily Mail source suggested Hailey’s family feared she might use her payout to clear Justin’s debts, noting the couple’s lack of a prenuptial agreement could entitle him to half her earnings in a divorce.

Hailey’s Firm Denial

Hailey’s team swiftly addressed the rumors. On July 17, 2025, her representative issued a statement to Daily Mail and People, asserting, “The historic sale of Rhode is a huge accomplishment for Hailey and is completely separate from her husband and his business affairs.” This was echoed on X, with @TheShadeRoom posting, “Hailey Bieber is denying she used her $1B Rhode sale to pay off Justin Bieber’s alleged debt to his ex-manager!” Thai-language X posts from @jbieb1st reinforced this, stating the sale was “Hailey’s achievement alone” and unrelated to Justin’s finances.

Justin’s team also pushed back, labeling the debt claims “clickbait stupidity” from unreliable sources. A source told People that Justin was “beyond proud” of Hailey, having supported her from Rhode’s inception. He celebrated the deal on Instagram, sharing a press release screenshot with a heart emoji, a gesture Hailey reciprocated by thanking him at the Daily Front Row’s Beauty Innovator of the Year Award in April 2025. The couple’s public unity, seen in moments like their August 2024 announcement of their son, Jack Blues Bieber, and their fifth anniversary posts, countered divorce rumors.

The Financial Reality

The $1 billion figure, while headline-grabbing, doesn’t translate to a direct billion-dollar payout for Hailey. Finance expert Caroline Beggs, in a Daily Mail analysis, estimated Hailey’s take-home after taxes and shared ownership could be around $242 million, assuming she holds a 50–70% stake. With California’s high tax rates, nearly 38% of the payout could go to taxes, and the $200 million earnout depends on future performance. Allure clarified that the deal’s structure—$600 million cash, $200 million in stock, and a potential $200 million earnout—means the final amount is uncertain.

Northeastern University’s Leila Deravi, a cosmetics chemistry professor, attributed Rhode’s value to Hailey’s celebrity influence rather than unique products, noting her social media reach and marketing savvy. The viral Lip Case, for instance, sold out after Hailey’s strategic selfies, showcasing her ability to turn products into status symbols. Despite a 2024 trademark dispute with Rhode-NYC, LLC, settled through a coexistence agreement, Hailey’s brand maintained its trajectory, with e.l.f. poised to amplify its global reach through Sephora.

The Broader Context

The rumors reflect a broader tendency to tie Hailey’s success to Justin’s narrative, often overshadowing her entrepreneurial prowess. As the daughter of actor Stephen Baldwin, Hailey faced “nepo baby” criticism, but her hands-on role in Rhode’s product development and marketing has earned respect. MSNBC noted her “powerful convergence of influence,” with fans camping out for pop-ups, a testament to her community-building. The deal positions her alongside beauty moguls like Rihanna and Selena Gomez, whose Rare Beauty hit a $1 billion valuation.

The speculation about Justin’s finances, fueled by a TMZ documentary alleging he was “on the verge of financial collapse,” lacks conclusive evidence. His 2023 sale of his music catalog for $200 million and ongoing projects, like his fashion brand SKYLARK, suggest financial stability, despite the Justice tour cancellation. Hailey’s reported shift to a creative role at SKYLARK, per a Daily Mail insider, indicates a collaborative partnership, not a bailout.

Fan and Media Reactions

The rumors sparked heated debate on X, with @baddietvv posting, “Hailey Bieber Addresses Rumors That Justin Bieber Plans to Use Her Rhode Fortune to Pay Scooter Braun,” amplifying her denial. Fans praised her independence, with one writing, “Hailey built Rhode from the ground up. Justin’s issues are his own.” Others, however, fueled divorce speculation, with comments like, “She’s leveling up while he’s dragging her down.” Media outlets like Forbes and The New York Times focused on the deal’s significance, with Forbes noting its rarity among celebrity beauty brands. Elle estimated Hailey’s net worth now exceeds Justin’s $200 million, highlighting her financial independence.

Conclusion

Hailey Bieber’s $1 billion Rhode sale to e.l.f. Beauty is a historic milestone, cementing her as a beauty industry powerhouse. The rumors tying the deal to Justin Bieber’s alleged $31.5 million debt to Scooter Braun were swiftly debunked by Hailey’s team, who emphasized, “The historic sale of Rhode is a huge accomplishment for Hailey and is completely separate from her husband and his business affairs.” Backed by Justin’s public support and her own strategic vision, Hailey has navigated skepticism and trademark disputes to build a brand that resonates globally. The viral success of Rhode, driven by her social media influence and innovative products, underscores her entrepreneurial grit. As she steps into her expanded role at Rhode and e.l.f., Hailey’s denial of the rumors reaffirms her commitment to defining her legacy on her own terms, proving that her success is hers alone.