6 ms·

YouTube mega-star MrBeast seeks 10-figure valuation

16 points by 609venezia 4y ago

ineedasername 4y ago
Seems way too high. A 10x valuation like this is usually for tech related businesses. MrBeast is sort of tech adjacent, producing content that leverages social media platforms, but isn’t actually a hockey-stick growthable venture (coined that word myself; also yes, hockey sticks occur in viral growth for content popularity but MrBeast has arguably already passed that phase of his content business) The types of businesses mentioned for expansion using the invested funds don’t see that many hockey sticks. And restaurants are horribly risky and failure prone: they’re heavily influenced by fads and economic circumstances. He might very well pull it off, it’s early days in his existing efforts to talk about longevity, but it’s all risky.
- rogerkirkness 4y ago
  10x revenue multiple is not crazy for content. Content has zero marginal costs like software.
  - ineedasername 4y ago
    It’s an investment for expansion though and he’s already seen his hockey stick growth. Usually the 10x is in anticipation of that future growth. MrBeast is already established on that front. But I should refrain from judging too much. Details on what he’s seeking for investment terms and what he’s proposing for business growth were too thin here for more than mild skepticism.
  - stnikolauswagne 4y ago
    In a vacuum that is true, but for MrBeast in particular his entire shtick around content is „look at me spending outrageous amounts of money on this video“, there are probably Holywood movies out there that have a better revenue/cost ratio than some of his stuff.
- user_named 4y ago
  Content, brand and IP can 100x easily. It's just that they don't on average. Like with startups.
sema4hacker 4y ago
MrBeast thumbnails from the future might be accurate: https://www.youtube.com/watch?v=0_0M_5tgLT8 https://www.youtube.com/watch?v=0_0M_5tgLT8
Beaver117 4y ago
Good on him. He completely figured out YouTube's model and now is expanding to other industries. I can easily see him at 10+ billion in another 10 years.
- modshatereality 4y ago
  what's their "model" posting thumbnails that look like you're in the process of fellating your robot overlords? I've ever once willingly clicked any of these videos but youtube INSISTS i must be their #1 fan, it's a scam.
ineedasername 4y ago
Something about MrBeast has always bothered me, I’m not quite sure I can put my finger. It has to do with things like his random money drops. It seems like he established himself in an #OMG look at this great thing I’m doing for someone# sort of way. But doing something good always felt like the incidental byproduct of producing a bit of content that got lots of eyeballs on it. I’ve never seen something that would demonstrate that MrBeast is doing any of it because he actually cares, and instead it seems like it’s done because it drives viral consumption of the content. I’d like to be wrong if anyone has come across something that shows otherwise. Maybe this shouldn’t bother me? By which I mean, if everything MrBeast has done wasn’t through YouTube but instead was presented as, say, a Netflix production “reality” tv series then I’d think to myself- oh of course it’s for audience entertainment and any good that comes of it is a happy accident, not the actual goal. Maybe my issue is how I was initially introduced to MrBeast content, which was through my young kids. And my kids thought he was actually giving the money away specifically and primarily to do something good and nice for someone. Instead it feels like there’s an element of exploitation to it. I don’t know, I’m probably overthinking the whole thing and I should (maybe? Thoughts or suggestions?) just recalibrate my outlook to view his content as just another sort of game show or something. Though even then, it annoys me that some people seem to view him as a good person for what he does, akin to viewing CBS as altruistic for giving Jeopardy winners $$. I’m overthinking this. Stopping now.
- polishdude20 4y ago
  I agree. He is literally investing that money into his business. That's just called a "write-off" or cost of doing business. It's not altruism if the act literally makes him more money than he gives away.
- mdrzn 4y ago
  He has never hidden the fact that he only cares about doing the BEST video ever for YouTube. He doesn't really care about becoming a billionare or giving away $10m a month, he cares that the video will be the BEST ever so if giving away money is a way to make a video more interesting, so be it. There's hours of interviews with him, if you want to understand him deeper just watch a few. He's transparent in what he does.

16 points by 609venezia 4y ago

Seems way too high. A 10x valuation like this is usually for tech related businesses. MrBeast is sort of tech adjacent, producing content that leverages social media platforms, but isn’t actually a hockey-stick growthable venture (coined that word myself; also yes, hockey sticks occur in viral growth for content popularity but MrBeast has arguably already passed that phase of his content business) The types of businesses mentioned for expansion using the invested funds don’t see that many hockey sticks. And restaurants are horribly risky and failure prone: they’re heavily influenced by fads and economic circumstances. He might very well pull it off, it’s early days in his existing efforts to talk about longevity, but it’s all risky.

rogerkirkness 4y ago
10x revenue multiple is not crazy for content. Content has zero marginal costs like software.
- ineedasername 4y ago
  It’s an investment for expansion though and he’s already seen his hockey stick growth. Usually the 10x is in anticipation of that future growth. MrBeast is already established on that front. But I should refrain from judging too much. Details on what he’s seeking for investment terms and what he’s proposing for business growth were too thin here for more than mild skepticism.
- stnikolauswagne 4y ago
  In a vacuum that is true, but for MrBeast in particular his entire shtick around content is „look at me spending outrageous amounts of money on this video“, there are probably Holywood movies out there that have a better revenue/cost ratio than some of his stuff.
user_named 4y ago
Content, brand and IP can 100x easily. It's just that they don't on average. Like with startups.

sema4hacker 4y ago

MrBeast thumbnails from the future might be accurate: https://www.youtube.com/watch?v=0_0M_5tgLT8 https://www.youtube.com/watch?v=0_0M_5tgLT8

Beaver117 4y ago

Good on him. He completely figured out YouTube's model and now is expanding to other industries. I can easily see him at 10+ billion in another 10 years.

modshatereality 4y ago
what's their "model" posting thumbnails that look like you're in the process of fellating your robot overlords? I've ever once willingly clicked any of these videos but youtube INSISTS i must be their #1 fan, it's a scam.

ineedasername 4y ago

Something about MrBeast has always bothered me, I’m not quite sure I can put my finger. It has to do with things like his random money drops. It seems like he established himself in an #OMG look at this great thing I’m doing for someone# sort of way. But doing something good always felt like the incidental byproduct of producing a bit of content that got lots of eyeballs on it. I’ve never seen something that would demonstrate that MrBeast is doing any of it because he actually cares, and instead it seems like it’s done because it drives viral consumption of the content. I’d like to be wrong if anyone has come across something that shows otherwise. Maybe this shouldn’t bother me? By which I mean, if everything MrBeast has done wasn’t through YouTube but instead was presented as, say, a Netflix production “reality” tv series then I’d think to myself- oh of course it’s for audience entertainment and any good that comes of it is a happy accident, not the actual goal. Maybe my issue is how I was initially introduced to MrBeast content, which was through my young kids. And my kids thought he was actually giving the money away specifically and primarily to do something good and nice for someone. Instead it feels like there’s an element of exploitation to it. I don’t know, I’m probably overthinking the whole thing and I should (maybe? Thoughts or suggestions?) just recalibrate my outlook to view his content as just another sort of game show or something. Though even then, it annoys me that some people seem to view him as a good person for what he does, akin to viewing CBS as altruistic for giving Jeopardy winners $$. I’m overthinking this. Stopping now.

polishdude20 4y ago
I agree. He is literally investing that money into his business. That's just called a "write-off" or cost of doing business. It's not altruism if the act literally makes him more money than he gives away.
mdrzn 4y ago
He has never hidden the fact that he only cares about doing the BEST video ever for YouTube. He doesn't really care about becoming a billionare or giving away $10m a month, he cares that the video will be the BEST ever so if giving away money is a way to make a video more interesting, so be it. There's hours of interviews with him, if you want to understand him deeper just watch a few. He's transparent in what he does.