Could MrBeast Go Public?
Is it time for MrBeast to make his debut on the New York Stock Exchange? A few years back, a YouTuber had an idea that led to a valuation of $1.5 billion. While some skeptics questioned this figure, Beast Industries eventually raised funds last year at a $5 billion valuation. Now, there’s a much bigger question at hand: would you buy stock from a 27-year-old named Jimmy?
Even if you don’t have children under 15, you really should know who MrBeast is. Jimmy Donaldson, the man behind the MrBeast channel from North Carolina, boasts over 450 million subscribers on YouTube, making him, arguably, the most successful social media figure to date.
So, when journalist Andrew Ross Sorkin inquired about the prospect of going public during the DealBook Summit, it was a logical question.
“At some point you’ll want to do an IPO,” Sorkin remarked.
“We want to give the 1.4 billion unique viewers who’ve watched Jimmy’s content in the last 90 days the chance to become owners of the company,” Housenbold, CEO of Beast Industries, replied. That response feels almost like a yes, as it’s hard to find another way to offer ownership to over a billion people.
Like many prominent creators, MrBeast’s business ventures extend beyond traditional YouTube ad revenue. He also heads Beast Industries, with Feastables Chocolate being a major revenue source. It’s reportedly more profitable than the YouTube channel itself or his show “Beast Games” on Prime Video.
Housenbold shared plans for Beast Industries to create a marketplace where creators and marketers can collaborate—something several startups in the creator economy are already exploring. Additionally, the company is considering launching a telephone company, a financial services platform, and even a theme park in Saudi Arabia. Is that too ambitious? Maybe.
But Donaldson’s business journey hasn’t been without struggles. Beast Industries is currently embroiled in a lawsuit with ghost kitchen Virtual Dining Concepts, claiming that it damaged the MrBeast Burger brand by selling “inedible” food products. There’s also a countersuit regarding accusations of a contract breach.
After filming the first season of “Beast Games,” five contestants sued Donaldson and Amazon, alleging incidents of abuse and harassment on set. The complaint, heavily redacted, suggests that the filming environment fostered “a culture of misogyny and sexism.”
In his conversation with DealBook, Donaldson remarked, “The point is, we learned why it’s tricky to have 2,000 people on set—because 1,999 of them usually aren’t happy they didn’t win… I’m not sure how much I can say about this, but yes, some people are going to sue. It’s pretty common, isn’t it?”
To this, Housenbold added, “Listen, we’re always learning and improving.” His comment evoked laughter from the audience. “Failure is part of success, so we believe Season 2 will be much better.”
Despite the challenges, Beast Industries’ issues probably won’t prevent it from eventually going public, assuming they can adapt and establish the management discipline necessary for the scrutiny of an IPO.
Donaldson may not be the first creator to take their company public, but he could be the first to successfully navigate a creator-led IPO. Esports team FaZe Clan went public for $725 million via SPAC but ended up acquired a year later for only $17 million. In November, Pinkfong, the company behind the viral “Baby Shark” video, went public in South Korea.
“We’ve been a global media company from the start, and we’re now excited to monetize our audience and the trust we’ve built,” Housenbold stated.
