Did Hailey Bieber sell Rhode Beauty to help Justin Bieber with his financial woes?

Hailey Bieber is inching very close to billionaire status. Her recent sale of her skincare brand, Rhode, to e.l.f. Beauty for up to $1 billion has been making headlines.

Hailey Bieber founded her brand in 2022 and served as the Chief Creative Officer. Rhode Beauty gained recognition for its minimalist skincare and beauty products, and some of their releases went viral within days of their release. The brand's popular blushes and peptide lip treatments were selling widely, and reported more than $200 million in net sales this March.

Hailey Bieber sells her brand, Rhode Beauty and fans speculate whether this decision is fuelled by Justin Bieber's financial losses

It’s clear that Rhode Beauty was at the peak of its fame, which is why some experts have questioned Hailey Bieber's decision to sell off the brand at this juncture when she clearly could have built it further and sold it off in a few years at a higher value.

In fact, e.l.f. Beauty CEO Tarang Amin himself said, “She could have easily gotten more money from private equity or something else, but she cares about building this brand for the long term.”

Multiple reports have claimed that Justin Bieber, who's married to Hailey, is going through a cash crunch, and fans were quick to note that Hailey's business decision may have been influenced by Justin's monetary struggles.

On May 28, Hailey announced the brand's acquisition by e.l.f. Beauty in a deal valued at up to $1 billion. The agreement includes $800 million in cash and stock at closing, with an additional $200 million contingent on Rhode's performance over the next three years. Experts believe that Hailey Bieber could have waited till her brand's value grew; for instance, Selena Gomez's Rare Beauty, which was founded in 2020 is already worth $2 billion and Rhode Beauty too, could be equally successful given the brand's popularity.

However, Justin Bieber is reportedly facing financial difficulties in the wake of his cancelled "Justice" world tour. Fans agree that it's not unusual for Hailey Bieber to consider selling off her brand to help him out. A series of financial audits indicate that Justin Bieber owes over $8 million to his former manager, Scooter Braun. 

The rift between Bieber and Braun is said to have escalated due to monetary issues that emerged after the abrupt cancellation of the singer’s 2022 "Justice" tour. Allegedly, Bieber had committed to repaying $24 million to Braun’s company, Hybe Corporation, after halting the tour, though this has never been formally acknowledged. A recent TMZ documentary delves into the strained relationship between the pop star and his longtime manager, highlighting the financial tensions.

Sources suggest the trouble began when Justin Bieber was forced to pull out of the tour due to health concerns. He had accepted a $40 million advance from AEG, the tour’s promoter, but the early termination left him liable for $24 million. To help cover this obligation, Hybe reportedly stepped in with financial support, and Bieber signed a note agreeing to repay the debt over ten years.

However, reports claim that after making just one payment to Hybe, Bieber stopped further repayments. Individuals close to Braun confirm that Bieber’s team reached out to admit the singer no longer had the funds to meet the debt commitment. 

In the light of Justin's financial struggles, fans were quick to conclude that Hailey was selling her brand to help out her husband. However, there could be a number of reasons Hailey Bieber said yes to the acquisition. A recent NielsenIQ report reveals that celebrity beauty brands generated over $1 billion in sales last year alone, and Rhode is undeniably a part of that booming trend.

Moreover, Hailey has proved she has a keen eye for brand-building, knowing exactly when to scale and when to exit. That’s a mark of sharp business acumen, regardless of any private challenges. Nevertheless, it is difficult not to question whether this billion-dollar “new chapter” also serves as a carefully timed lifeline for her family. 

Hailey Bieber's net worth has skyrocketed post the acquisition. Hailey Bieber’s current fortune is conservatively pegged at around $300 million, factoring in her earnings from the recent Rhode acquisition. However, some reports suggest that given the scale of the deal and her equity stake in the brand, her net worth could be approaching $1 billion—potentially placing her among the elite company in the celebrity billionaire circle, alongside Taylor Swift, Kim Kardashian, Selena Gomez, Kylie Jenner and Rihanna. Hailey’s financial standing has now eclipsed that of Justin Bieber, whose net worth is estimated to fall somewhere between $200 million and $300 million.