Hailey Bieber Is a Nice Entrepreneur. She Did Not Make $1 Billion This Week.

When mannequin Hailey Bieber was on the cowl of Attract introducing her soon-to-launch skin-care line referred to as Rhode, she instructed us that her largest hope for the model was that somebody may decide it up and never know it is hers: “That will be my dream, for it to truly shock individuals.” And what a shock all of us obtained this week when Bieber introduced she’d offered her model to E.L.F. Magnificence solely three years later. Much more surprising than this accelerated timeframe, although, was the quantity she offered it for, in accordance with Wednesday’s press launch: $1 billion.

Later that afternoon, we weren’t stunned to see information headlines and user-generated TikTok movies swirling, largely leaping on that B-word: Many stated that Hailey Bieber offered Rhode for a billion bucks, or that she was set to earn a billion {dollars} from the sale of the model. A number of retailers went as far as to declare that Bieber is a billionaire now, implying that the announcement of this deal triggered a direct deposit of a 10-digit determine into her checking account.

Within the headline for our interview with Bieber this week, we referred to the worth of the deal as being “more cash than we may ever dream of.” Positively correct! In a video posted to our social media accounts, our content material director, Kara McGrath, said the model was offered for “greater than half a billion.” Additionally correct! But commenters had been fast to reply, telling us we obtained the quantity unsuitable. However there’s a purpose we didn’t say it is a full-on, billion-dollar acquisition (at the least not but).

After we regarded on the transactional particulars specified by the press launch, we realized we wouldn’t be 100% comfy in stating that Bieber had offered Rhode for $1 billion. It describes the deal as being “comprised of $800 million of consideration payable at closing [the second quarter of fiscal 2026] in a mix of money and inventory, topic to customary changes, and an extra potential earnout consideration of $200 million based mostly on the long run progress of the model over a three-year timeframe.” Since $200 million of that $1 billion is hypothetical, we paused earlier than placing “$1 billion” in our headlines and social content material.