This piece & artwork originally appeared in ADWEEK.
When e.l.f. Beauty acquired Rhode Skin in a blockbuster $1 billion deal, it sent shockwaves through the creator economy. Observers had plenty of questions: What did the deal mean for one of beauty’s hottest up-and-coming brands? Does this signal a return to a robust beauty M&A market? Which beauty brands were the next hot acquisition targets? And was Rhode really worth the price?
But for those who have been following the momentum of creator-led brands like Rhode, those shockwaves weren’t all that shocking.
The historical context behind Rhode’s breakthrough
Rhode’s acquisition didn’t happen in a vacuum. It came on the heels of multiple recent acquisitions, all of which involved brands that had increased their cultural footprint and bottom-line revenue by building community via creators.
Looking at the last five years alone, we’ve seen the following deals for standout beauty brands:
- Charlotte Tilbury, acquired by Puig in 2020 for $1.5 billion.
- Paula’s Choice, acquired by Unilever in 2021 for $2.2 billion.
- Byredo, acquired by Puig in 2022 for an estimated €1 billion (approximately $1.07 billion at the time).
- K18 Hair, acquired by Unilever in 2023 for an estimated $700 million.
- Deciem, acquired by the Estée Lauder Companies in 2024 for an estimated $860 million.
And this isn’t just happening in beauty. Poppi, another brand that built its reputation on a savvy creator program with Alix Earle as a content and equity partner, was acquired by PepsiCo in 2025 for $1.95 billion.
These brands didn’t just exhibit impressive growth prior to their acquisition; they’ve continued growing ever since. Comparing their Earned Media Value (EMV) totals in the year they were acquired versus 2024, these brands have averaged a 94% growth rate, justifying their parent organizations’ initial investments and further demonstrating the sustainable power of creator marketing.
The numbers behind Rhode’s rise
Since launching in June 2022, Rhode has been one of the fastest-growing brands not only in the skincare industry but also in the entire creator economy.
In a recent 12-month analysis, Rhode ranked as the No. 1 skincare brand by EMV both in the U.S. and globally, and the No. 5 skincare brand by EMV in Europe. Among our top 10 U.S. skincare brands, Rhode ranked No. 1 in both year-over-year EMV and engagement growth.
Translation? It’s not just that more people than ever are aware of Rhode. They’re liking, commenting on, and sharing content about the brand at a record pace. They’re seeing how it feels to be in the world of Rhode. All of this is indicative of the Gen Z appeal that made Rhode such an enticing target to e.l.f. Beauty, who saw a standout brand in a standout vertical, with a passionate fanbase among a demographic it was looking to break into, and made a deal.
While this deal might have seemed high at first, it’s actually on par with recent history and presents further validation of creator-led brands. If you combined CreatorIQ’s metrics for Rhode and e.l.f. Beauty—like via an acquisition—would result in our database’s No. 1 brand in all of beauty.
What high-growth, creator-led brands have in common
What are some of the other shared characteristics we see across creator-led brands that drive massive value creation at scale?
Early investment in creators. One of the main creator marketing tenets I preach to brands, from small-scale companies to multinational enterprise brands, is that the best creator programs grow with their creators. By investing in creators and partnering with them early in their careers, you’re not only fostering loyalty but also giving your brand an opportunity to reap the rewards of an expanded community as that creator grows over time.
Recognition of creators as culture builders. The savviest brands understand that creators aren’t just commenting on or reacting to culture, they’re shaping it. The zeitgeist moves fast, and for digital consumers, creators are an invaluable, trustworthy link to understanding what’s going on and meeting the moment.
Momentum, momentum, momentum. Prior to its acquisition in 2021, Paula’s Choice saw a 161% EMV increase from 2018 to 2019, and a two-year community growth of 143% from June 2019 to May 2021. Before Unilever acquired it in December 2023, K18 Hair increased EMV by 117%, engagements by 222%, and increased its creator community by 108%, from January to November 2023. The picture is clear: Conglomerates are paying attention to brands that are drastically expanding their market share via their digital presence, and creators are absolutely critical to this expansion.
Diversity and scale of creator content. A robust creator community is one reason why Rhode was able to transcend its famous founder and achieve the lasting growth that often eludes celebrity-founded brands. CreatorIQ data found that just 15% of Rhode’s EMV over the last 12 months came from posts that mentioned Hailey Bieber by name. Instead of relying entirely on name recognition and hype from Bieber’s celebrity power, Rhode expanded its reach via a diverse, scalable range of content produced by creators at different stages of their journeys.
Plenty of potential. Remember how Rhode ranks No. 5 in Europe despite ranking No. 1 both in the U.S. and globally? That means, for all its achievements, Rhode still has room to grow. Meanwhile, it presents e.l.f. Beauty with its first entry point into Sephora—a sign of the deal’s mutual benefit. With white space on both sides, Rhode’s acquisition confirms the importance that untapped potential plays in high-profile acquisitions.
Putting it all together
We’ve entered a new era for enterprise brands, one in which creators have emerged as architects of both cultural capital and enterprise valuation. If a string of billion-dollar acquisitions weren’t proof enough of this shift, consider Unilever’s commitment to spending 50% of its marketing budget on creator-first strategies.
In order to meet this moment head on and not risk being left behind, here’s what marketers need to understand:
- Creators are fundamental to brand equity: No longer a side channel, creators are now core to building brand value and cultural relevance.
- Creator-led strategies drive massive value creation: E.l.f. Beauty’s acquisition of Rhode, alongside other recent high-valuation deals, demonstrates that brands with strong creator programs are highly attractive acquisition targets, thanks largely to their powerful growth trajectory and commitment to community-building.
- Creators’ authenticity and cultural fluency are essential for success: In today’s fractured media ecosystem, brands that recognize creators as culture builders and grant them creative freedom to tell their stories authentically stand a greater chance of connecting with modern consumers.
While we’ll look back on Rhode’s acquisition as a signal moment in the history of the creator economy, the trends behind this event have been brewing for quite some time. With creators offering brands unmatched authenticity and a deep understanding of digital consumer behavior, there’s no telling just how high the creator economy will soar.