Financial expert reveals why Hailey Bieber after Rhode -deal did not actually earn a billion dollars

Hailey Bieber can just have sold her skin care brand Rhode in a stunning deal of $ 1 billion – But that doesn’t really make her a billionaire.

According to financial expert Caroline Beggs, who has built up a loyal supporter TapThe model and the entrepreneur, 28, are far from reaching the status of ten digits.

The real number she takes home is probably closer to $ 242 million.

Beggs, who has an MBA from Stanford and experience in high -level finance, broke the figures behind the mass sale of Rhode to ELF Beauty.

“I can’t take another second if you think Haley Bieber is a billionaire, so let me explain why,” she started the video.

She explained that although the sale was appreciated at $ 1 billion, $ 200 million of which is associated with what is called an ‘earn out’.

This means that Rhode has to achieve certain goals in the coming three years to see that money.

The brand was supported by external investors, including one luxury group and a few small angel investors.

Hailey Bieber may have just sold her skin care brand Rhode in a stunning deal of $ 1 billion – but that doesn’t really make her a billionaire

According to finance expert Caroline Beggs, who has built up a loyal supporter on TIKTOK, the model and entrepreneur, 28, is far from the status of ten digits

‘These types of investors receive a preferred treatment in these payouts and are often guaranteed returns before money reduces the investors of priority. This is what a liquidation judge is called, “she explained.

Even if they had only 20 percent of the company, they could take home 25 percent of the proceeds.

The company also has around 50 employees, including co-founders Lauren and Michael Ratner, and Beggs estimates that they can jointly have 10 percent of Rhode.

If you remove investors and equity, Hailey might run away with around $ 520 million. But it doesn’t stop there.

A quarter of that payment could be in eleven shares, which is probably in a lock -up period, which means that she cannot cash it in for six months to two years.

Beggs also explained that the share price could fall by the time she can sell.

Then the taxes come as a resident of California, including federal and national rates, which means that almost 38 percent of its payment can go to taxes.

After everything, Hailey is left with around $ 242 million, which is a huge amount, but still far from billionaire status.

Beggs, who has an MBA from Stanford and experience in high -level finance, broke the number behind the enormous sale of Rhode to eleven beauty

“She is certainly less than a billionaire. Let’s see how the share price of eleven does it after the takeover, “said the maker.

“That is probably the best gamble in Hailey to be a billionaire at the moment, unless Justin wants to go on a tour.”

On May 28, Hailey announced that she was sold Rhode to eleven cosmetics in a $ 1 billion deal.

Bieber launched her long -awaited brand in June 2022 and at that time left only three products from – Peptide – glazing liquid, barrier recovery cream and peptide lip treatment.

“When I launched @rhode in 2022, I always had big dreams for the company, and the most important thing for me to keep bringing Rhode to more spaces, places and faces worldwide,” she wrote in the caption of an Instagram post in honor of the news.

‘So today I am so incredibly excited and proud to announce that we are working with eleven beauty while we step into the world of Rhode in this next chapter.

“I found a like -minded disruptor with a vision to be a different kind of company that believes in big ideas and innovation in the same way as me and will help us grow the brand,” her message continued.

“I feel strengthened, excited and ready to get in an even greater role as Chief Creative Officer and Head of Innovation of Rhode and Strategic Adviser of Eleven Beauty.”

According to Business Wire, Hailey will still serve as the founder of the brand and Chief Creative Officer and Head of Innovation.