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.

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

A press release announced that e.l.f. Beauty acquired rhode in a $1 billion deal, in which Bieber will serve as rhode's Chief Creative Officer and Head of Innovation. As the Head of Innovation, she will oversee "creative, product innovation and marketing," according to a press release. She'll also be a strategic advisor to e.l.f. Beauty.