The Man Behind MrBeast’s $500M Business Portfolio (#475)

Added: Jul 19, 2023

The guest describes Night Media as a Creator holding company, with talent representation at the core of the business. However, they have also built out other verticals, including a venture studio, a studio that produces shows for streaming services, a venture capital fund, and a growth equity fund. The goal is to create a platformized Creator holding company that goes beyond just talent management. The hosts discuss the challenges of the talent management business, noting that it can be difficult to build a sustainable business solely based on talent representation. They mention examples of talent managers who either struggle to find talent or rely too heavily on a few key relationships. The guest explains that Night Media saw talent management as a means to an end, using it as a way to gain access to other opportunities and build a larger business. They discuss the structure of a talent agency, noting that it typically involves recruiting talent and helping them with their business operations and brand deals. In the world of YouTube, the exclusivity of management contracts can vary, with some management companies being exclusive and others not. The guest explains that Night Media has taken a more flexible approach, sitting somewhere in the middle. The conversation then turns to Night Media's venture studio and studio divisions. The guest mentions that they have worked on projects with YouTube Originals in the past and are currently developing scripted and non-scripted shows, as well as documentary-style content. They also discuss their packaging business, Night Labs, which focuses on building businesses with creators and taking equity in those ventures. The hosts ask about the profitability of the talent management business, noting that it can be challenging to build a sustainable business solely on management fees. The guest explains that Night Media has found success by focusing on building businesses with creators and taking equity in those ventures. They believe that business building is a more interesting long-term opportunity than simply stacking a management business. The guest reveals that Night Media currently has over 60 full-time staff members. They have lean teams for their venture studio and studio divisions, with the majority of the company being talent managers. The guest also mentions that they used to manage MrBeast personally but have since dedicated their time to other aspects of the business, such as Feastables, a rapidly growing venture in the food industry. The conversation then shifts to the origins of Night Media. The guest explains that they initially wanted to be a sports agent, inspired by the movie Jerry Maguire. However, they stumbled upon YouTube in 2013 and became obsessed with it, which led them to start Night Media and focus on representing digital creators. The hosts bring up the recent trend of creators signing lucrative deals with companies like Kik, a Twitch alternative. They mention that Kik has been offering streamers large contracts, including a reported two-year, $100 million deal with one of Twitch's top streamers. Kik is using these deals to drive traffic to its gambling business, which is funded by its ultra-profitable company, Stake. The hosts discuss the potential success of this strategy and the challenges of the global chocolate supply chain. The conversation concludes with a discussion of Night Media's future plans. The guest mentions that they are focused on building out their chocolate and seasonality business, with plans for expansion into other categories in the future. They believe there is a significant opportunity for growth globally, especially in markets like Asia and the Middle East. They also mention the success of other creators who have started their own businesses, highlighting the potential for niche channels to become big opportunities. Overall, the podcast provides an in-depth look at Night Media and its approach to building a comprehensive business portfolio around digital creators. The guest shares insights into the challenges and opportunities of the talent management business and discusses the company's future plans for growth. The hosts and guest also touch on various topics related to the world of online content creation, social media platforms, and business opportunities, providing valuable insights for creators and entrepreneurs in the digital landscape.