Hailey Bieber’s recent sale of her skincare brand Rhode to E.l.f Beauty in a deal valued at up to $1bn marks a significant moment for the creator economy and influencer-led entrepreneurship. 

The deal not only demonstrates the commercial viability of celebrity-founded beauty brands but also signals a fundamental shift in how creators can monetise their influence, moving beyond traditional sponsorship models to become entrepreneurs who can generate substantial equity from building their own brands.

The rise of creator-owned brands

Rhode’s success exemplifies a broader transformation within the industry, where content creators are increasingly establishing their own product lines rather than merely promoting existing brands. Recent data shows that 88% of creators have launched their own products, while research from global creator agency Billion Dollar Boy reveals that 65% of consumers have purchased products or services from creator-founded brands (Source: Forbes).

This shift from sponsorship to ownership represents a new model of monetisation. Other examples include Rihanna’s Fenty Beauty, Kylie Jenner’s $600m Coty deal, and Selena Gomez’s Rare Beauty, all of which demonstrate the enormous potential for creator-led ventures.

What sets these brands apart is their direct line to consumers. Creators foster deep, creator-follower relationships with their audiences, relationships that drive trust, loyalty, and conversion. With pre-built communities and organic marketing reach, creator brands can scale faster and more cost-effectively than traditional players.

Strategic implications for the creator economy

E.l.f Beauty’s acquisition strategy, integrating brands like Alicia Key’s Keys Soulcare and Naturium, shows how established firms adapt to creator disruption. By acquiring rather than competing, traditional companies leverage creator audiences and marketing expertise while providing global distribution networks.

The deal structure ensuring Hailey Bieber’s continued involvement as Chief Creative Officer and Head of Innovation highlights the growing recognition that founder-creators are long-term brand assets. Retaining their influence helps preserve the authenticity and community trust that drives customer loyalty.

As creator-founded ventures gain momentum, future deals are likely to prioritise founder retention to maintain the credibility and community relationships that underpin their success.

Industry outlook

The Rhode acquisition is more than a headline – it sets a precedent. Creators are no longer just influencers; they’re entrepreneurs, brand builders, and exit-ready founders. This shift is redefining the boundaries between influence and ownership, and it’s only the beginning.

Looking ahead, we’re likely to see more creator-founded brands receiving institutional funding earlier in their lifecycle, M&A activity driven by audience loyalty (not just revenue), and more retail evolution with creator brands moving from direct-to-consumer into major retail chains (e.g., Selena Gomez’s Rare Beauty in Space NK stores).

Rhode’s $1bn sale demonstrates the potential for creators to build long-term, profitable businesses rooted in authenticity and community. As the creator economy matures, this model is set to become one of the most dynamic forces in modern brand-building.

If you have any questions on this article or would like to chat about your upcoming M&A plans, please get in touch at hello@wypartners.com.