Could MrBeast IPO? His CEO wants fans to have ‘a chance to be owners of the company’

Could MrBeast, the YouTube sensation, be gearing up for an initial public offering (IPO)? Three years ago, the thought of a YouTuber being valued at $1.5 billion seemed far-fetched to many. However, Beast Industries, MrBeast's parent company, achieved a staggering $5 billion valuation last year, prompting a deeper inquiry: Would you invest in a 27-year-old named Jimmy? Jimmy Donaldson, known as MrBeast, has become a household name with over 450 million subscribers on his YouTube channel, making him one of the most influential figures in social media. At the recent DealBook Summit, journalist Andrew Ross Sorkin posed the question of an IPO to MrBeast and Jeff Housenbold, CEO of Beast Industries. Housenbold indicated a strong interest in making shares available, aiming to provide the 1.4 billion unique viewers who have tuned into MrBeast's content in the past 90 days with a chance to own a piece of the company. Beyond YouTube ad revenue, MrBeast's business ventures extend into various lucrative projects, with Feastables chocolate emerging as a top revenue generator—outperforming both the YouTube channel and the Prime Video series 'Beast Games', based on leaked financial reports. Housenbold also unveiled plans for a two-sided marketplace designed to connect creators and marketers, as well as ambitious expansions that include launching a mobile phone company, a financial services platform, and even a theme park in Saudi Arabia. Despite these successes, Beast Industries has faced challenges, including an ongoing lawsuit with Virtual Dining Concepts, which allegedly harmed the MrBeast brand by distributing subpar food from MrBeast Burger. Additionally, five contestants from 'Beast Games' have filed a lawsuit against Donaldson and Amazon, citing mistreatment and sexual harassment during filming. The lawsuit claims that the production environment perpetuated a culture of misogyny and sexism. In his comments at DealBook, Donaldson reflected on the difficulties of managing large-scale competitions, noting, "The big thing is, obviously, I learned why people don’t have 2,000 people compete in a show, because you’re creating a scenario where 1,999 aren’t happy because they didn’t win." Housenbold chimed in, emphasizing the importance of learning from mistakes: "Mistakes are part of success, so Season 2 is a lot better." Despite these hurdles, the prospect of going public remains tantalizing for MrBeast and his company. While Donaldson wouldn't be the first content creator to take a business public, he could potentially achieve the first successful IPO in the creator economy. Notably, FaZe Clan's public debut via a $725 million SPAC ended in an acquisition for just $17 million a year later. In contrast, the company behind the viral 'Baby Shark' video, Pinkfong, successfully went public in Korea last November. "From day one, we’re a global media company, and now, we’re working on monetizing that viewership, that fandom, and that trust we built," Housenbold added, hinting at the future trajectory of MrBeast's business ventures.