In a headline-making beauty deal, e.l.f. Beauty snapped up Hailey Bieber’s rhode skincare brand for nearly $1 billion — $800 million in cash and stock, plus $200 million in performance-based payouts. It’s a defining moment for an industry where influencer-backed labels can race from startup to star status, fueled by social media and Gen Z loyalty.¹

Rhode, launched in 2022, built its name on minimalist branding and a lean lineup of just 10 products, yet delivered $212 million in net sales over the past year.² With Bieber staying on as Chief Creative Officer and Head of Innovation, rhode will gear up for its first major retail push into Sephora stores across North America and the U.K.³

Rhode is not alone. Across the beauty landscape, celebrity-led brands have become a major force and are reshaping how products are marketed, sold, and celebrated.⁴

More than 40 celebrity beauty brands generated more than $1 billion in sales in 2023, according to Nielsen IQ. Many have successfully leveraged social media platforms to connect with younger fans and shoppers, building communities around their products.⁵ Empower research shows nearly one-quarter of Americans now dreamscroll for beauty and self-care items to add to their wish lists, underscoring just how much these brands are driving consumer engagement.

Read more: Consumers see the glow of at-home beauty tools

Signs of a M&A rebound 

The rhode acquisition is the latest example of an industry leader betting on emerging growth in an uncertain economy, but the momentum isn’t limited to beauty. Signs of a broader M&A resurgence are emerging after an uneven start to 2025.⁶

The first quarter of 2025 saw about $421 billion in M&A activity, an 8% increase from the fourth quarter of 2024 thanks to large deals like the purchase of Walgreen Boots Alliance by private equity firm Sycamore Partners. However, the overall number of deals fell 19% from the prior quarter, according to data from S&P Global.⁷

Corporate concerns about tariffs and the economy held back both the volume and value of deals in April with deals valued at more than $100 million falling 51% from March, according to an analysis by EY.⁸ But more recent activity could signal a reversal as more companies seek a competitive edge.⁹

Dick’s Sporting Goods on May 15 acquired footwear chain Foot Locker for $2.4 billion in deal intended to broaden Dick’s appeal both internationally and among sneaker enthusiasts who always await the latest styles and “drops.”  About 33% of Foot Locker sales comes from stores outside the U.S., including Canada, Europe, Asia, Australia, and New Zealand.¹⁰

Healthcare M&A is also heating up. French pharmaceutical giant Sanofi agreed to pay up to $9.5 billion for Cambridge, Mass.-based Blueprint Medicines, which develops drugs for rare immunology diseases. The June 2 acquisition is Sanofi’s third deal of the year, and executives signaled that there might be more to come.¹¹

In other developments, Charter Communications and Cox Communications proposed a $34.5 billion merger on May 16 that would create one of the largest TV and internet providers. The deal would allow the cable companies to better compete with wireless broadband providers and streaming services and save up to $500 million annually.¹²

Google, Warby pair on AI glasses 

There have also been some notable alliances. Warby Parker, another direct-to-consumer lifestyle brand, said May 20 that it will partner with Google parent Alphabet to sell AI-powered smart glasses. Alphabet will kick in $150 million to develop stylish, voice-controlled glasses powered by the Android operating system and Gemini AI.¹³ 

The partnership aims to compete with Facebook-parent Meta and EssilorLuxottica, which have been making AI-powered Ray Ban brand eyewear since 2019.¹⁴

Tariff worries haven’t deterred AI investment by big technology companies, which are on pace to spend a combined $320 billion in 2025.¹⁵ The recent spate of M&A deals among retailers and other types of companies could be an indicator that concerns are also easing among other sectors of the economy as well.¹⁶ 

Read more: Earnings update: Tech companies stay firm on massive AI spend