MrBeast IPO: Could the YouTube Star Go Public?

Is a MrBeast IPO on the Horizon?

The question of whether MrBeast will list on the New York Stock Exchange is gaining traction. Just three years ago, a $1.5 billion valuation for a YouTube-based enterprise seemed improbable to many. However, Beast Industries ultimately secured funding at a $5 billion valuation last year.

Currently, the discussion has evolved: would investors purchase stock in Jimmy Donaldson, a 27-year-old entrepreneur?

MrBeast's Immense Popularity

MrBeast’s reach is now so extensive that even those without young children are likely familiar with his work. Jimmy Donaldson, hailing from North Carolina, has amassed over 450 million subscribers on his MrBeast YouTube channel – surpassing all other channels and establishing him as potentially the most successful social media personality to date.

This prominence led reporter Andrew Ross Sorkin to question MrBeast and Jeff Housenbold, CEO of Beast Industries, about a potential public offering during the DealBook Summit.

Plans for a Potential IPO

Sorkin inquired, “Do you envision an IPO in the future?”

Housenbold responded, “Our aim is to eventually provide an opportunity for the 1.4 billion individuals globally who have viewed Jimmy’s content within the last 90 days to become stakeholders in the company.” This response strongly suggests a willingness to go public, as offering ownership to over a billion people presents significant logistical challenges.

Beyond YouTube: The Beast Industries Ecosystem

Like many prominent creators, MrBeast’s business extends beyond YouTube advertising revenue through Beast Industries. Feastables chocolate currently represents the company’s most profitable venture, exceeding the revenue generated by both the MrBeast YouTube channel and the “Beast Games” show on Prime Video, according to reported leaked documents.

Housenbold also revealed plans for Beast Industries to develop a two-sided marketplace connecting creators and marketers – a concept already being explored by numerous startups in the creator economy.

Furthermore, the company intends to launch a mobile phone company, a financial services platform, and a theme park in Saudi Arabia.

Challenges and Legal Issues

Donaldson’s business has encountered obstacles. Beast Industries is currently involved in a legal dispute with Virtual Dining Concepts, alleging damage to his brand due to the sale of “inedible” food through MrBeast Burger. Virtual Dining Concepts has filed a countersuit, claiming breach of contract.

Following the filming of “Beast Games” Season 1, five contestants initiated legal action against Donaldson and Amazon, citing alleged mistreatment and sexual harassment on set.

The lawsuit, largely redacted, alleges that the show fostered a “systematically misogynistic and sexist” environment.

Addressing the Lawsuits

During the DealBook conversation, Donaldson stated, “A key takeaway is that I now understand why few host competitions with 2,000 participants, as it inevitably leads to dissatisfaction among 1,999 of them who don’t win.”

He continued, “I’m limited in how much I can discuss, but lawsuits do occur, often motivated by financial gain.”

Housenbold interjected, “We are continually learning and improving.” His statement was met with laughter from the audience, prompting him to add, “Mistakes are integral to success, and Season 2 is significantly improved.”

The Path to Going Public

While these missteps exist, they wouldn’t necessarily preclude a future IPO, particularly if Beast Industries addresses them and cultivates the managerial rigor required for public scrutiny.

Precedents and Comparisons

Donaldson wouldn’t be the first creator-led business to go public, but he could potentially achieve the first successful creator IPO. The esports team FaZe Clan went public via a SPAC merger valued at $725 million but was acquired the following year for only $17 million.

In November, Pinkfong – the creator of the viral “Baby Shark” video – launched an IPO in Korea.

Monetizing a Global Audience

Housenbold emphasized, “From the outset, we’ve operated as a global media company, and we are now focused on monetizing our viewership, fandom, and the trust we’ve established.”