“MrBeast Going Public?” - Kalshi Traders BET On A MrBeast IPO

**SPEAKER_1** (0:00)
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**Pat** (0:30)
Kalshi came up and said 12% chance MrBeast announces an IPO. They have a new CEO. I think their valuation from a couple of years ago, they were saying it's worth one and a half billion. Right now, it's around five billion dollars.
Their chocolate business, if I'm not mistaken, quarter billion dollars of the revenue. They have 250 million dollars of just the chocolates. Can you fact check this for me? It could be 200 million. What is the number? Okay, I was right. 250 million dollars in revenue.
And so they got a new CEO, solid guy. What do you think is the likelihood that a YouTuber, like MrBeast, whose top-line revenue for his old brand right now is 800, 900 million dollars, what's the likelihood that somebody like that goes public?

**SPEAKER_3** (1:09)
Well, I think you have to realize he's not a YouTube business anymore.

**Pat** (1:13)
He's not, right?

**SPEAKER_3** (1:13)
Now, he makes money on content for sure. What he's basically figured out is I need to go and build products and companies and the business looks very different than it did maybe five years ago.
The second thing is if he had not raised money, the odds would be near zero because he probably doesn't want to deal with being public and all this stuff. The second you get investors and the type of investors that he has, they need to make a return. The only way you make a return is at some point you got to sell. You got to be able to monetize the investment. Well, unless you're going to just keep raising more capital from private equity and they're going to be secondary transactions, the way you get the liquidity for your investors, you go public. And so I think that it is increased odds now that he's taken money from some of these investors. The other piece of it though is what if he doesn't take the whole thing public, right? So one of the aspects that I think people always look at is like it's black and white. Either you take the whole thing public or you stay private.
What if or what if he sells the chocolate business to Hershey? What if he takes another piece, right? And he starts to monetize these different assets, but he realizes that the parent company being private is really valuable. And instead, he's able to monetize the individual assets.
I don't subscribe to the idea that like MrBeast is going to buy Hershey's, right? But I do subscribe to the idea that MrBeast is probably going to, some verticals, become the consolidator. And so, if he has the right people around him that understand capital markets, understand how to do M&A, I mean, he's in control, right? He has distribution in the world of AI, where somebody can listen to a phone call and build a product while you're on the phone call.

**Pat** (2:43)
Unbelievable.

**SPEAKER_3** (2:44)
The only thing that matters is do you have distribution? And he's probably got more distribution than anyone for a certain subset of, you know, the global population.
So he gets to dictate demands.

**Pat** (2:55)
Tom?

**Tom** (2:56)
I agree with that because I think what you're seeing is basically also the Kardashian effect. So you have this, think of the Kardashians as personalities, as sort of a holding company, right? They're holding this value and they're holding the audience. Okay, how do they monetize the audience? Well, you had...

**Pat** (3:16)
If you really want to go to it, we don't want to go there.

**Tom** (3:19)
No, let's stay out of alternative video products and just stick with...

**Pat** (3:23)
MrBeast makes different kind of videos, Tom. That's not what he specializes in.

**Tom** (3:26)
I can literally understand. You know, it's exactly right. That's not somebody walking in the shadows.

**Pat** (3:33)
I'm getting startled, Tom. I don't want to start.

**Tom** (3:35)
I'm not going to go here.

**Pat** (3:36)
I thought you were going there. This is a family-friendly podcast, Tom.

**Tom** (3:40)
Can we pull up the clip? Kylie, Kylie... Was it the...

**Pat** (3:44)
Can you pull up the clip?

**Tom** (3:47)
It's the... Yeah. So, you take the Kardashians. They have this storehouse of audience. And then Kylie went out, and just with a lip gloss, and just with her audience, because she was the new to the party. I think it was simply Kylie's lip gloss, and Kylie Cosmetics. And so, suddenly, that was a...