Model Hailey Bieber's makeup and skincare brand, Rhode, is being snapped up by Elf Beauty for about $1 billion, giving the budget cosmetic retailer access to a celebrity-endorsed product line that has become hugely popular among Gen Z and millennials.

E.l.f. Beauty has acquired Hailey Bieber's Rhode for $1 billion, betting on its glossy skincare and makeup range amid celebrity beauty fatigue. Discover how this acquisition could influence the cosmetics market.

The deal would mark a shift in strategy and expand into the prestige beauty market as e.l.f. faces weak demand from mass market customers.