Hailey Bieber is the face of the billion-dollar deal – but these two are the real masterminds behind it

Hailey Bieber sold her Rhode brand to Elf Beauty for one billion dollars. But behind her success is a Hollywood power couple.

Last week, US model Hailey Bieber sold her cosmetics brand Rhode to beauty giant Elf Beauty after just three years – for one billion US dollars.

The deal consists of $600 million in cash, $200 million in Elf shares, and performance-based payments of up to $200 million over the next three years.

Hailey Bieber, founder and wife of pop star Justin Bieber, will remain Chief Creative Officer and continue to lead product development. She will also assume a strategic advisory role.

Rhode sees itself as a hybrid of skincare and makeup—with just ten minimalist products that regularly sell out thanks to viral marketing. The philosophy: less is more in a market full of sensory overload.

A particularly popular product was the so-called "Lip Case" – a €50 cell phone case with an integrated lip gloss holder. At one point, the waiting list for the "Peptide Lip Tints," another skincare product, had over 400,000 people.

But what is lost in most reports about the billion-dollar deal is that behind Rhode is not only the famous face Hailey Bieber, but also a strategic power couple from Hollywood – Michael and Lauren Ratner.

Michael Ratner, founder and CEO of OBB Media, already had experience with the Biebers before Rhode. As director and executive producer of the ten-part YouTube documentary "Justin Bieber: Seasons," he covered the pop star's retreat from the spotlight, their meeting, and their wedding. The trust built during this time opened the door to a business partnership.

"We had just worked together and built a lot of trust, so she approached me to become her co-founder and business partner," Ratner writes on Instagram . His approach: scale the company like a media company—with the right storytelling as the foundation.

Lauren Ratner, Michael's wife and co-founder, as well as President & Chief Brand Officer, brings marketing expertise from the luxury brand Michael Kors, among others. After founding her own consulting firm, LER Consulting, she joined Rhode in 2020.

In an interview with British Vogue, Lauren Ratner attributes the brand's success to one crucial factor: none of the three founders had previous experience in the beauty industry.

"We're building Rhode without following a traditional playbook. We're making decisions based on data and consumer insights, but also doing so intuitively and without preconceived notions." She expressed euphoria about the sale on Instagram , thanking Hailey Bieber for "bringing her on board as a co-founder."

The secret of their sales strategy lies not only in their corset-free playbook , but also in the trio's ability to create hype and simultaneously present products as intimate and must-haves. Hailey Bieber managed to trigger viral moments with individual products on TikTok.

Together, the three founders scaled a company focused on content, commerce, and community. The founding team will continue to operate and provide strategic advice to Elf.

In addition, Rhode brand products will also be available at the perfume and makeup chain Sephora in the future. Previously, the products were only available online.