YouTube Star MrBeast Seeks Funding at $5 Billion Valuation for Business Empire

TLDR

• MrBeast (Jimmy Donaldson) is seeking to raise hundreds of millions of dollars at a $5 billion valuation
• The funding would create a holding company for his various businesses, including Feastables, Lunchly, and his video production company
• His business is profitable, generating over $400 million in sales last year
• MrBeast is the world’s biggest YouTuber with over 368 million subscribers
• He recently created “Beast Games” for Amazon Prime, which became their most-watched unscripted series

Jimmy Donaldson, better known as MrBeast, is looking to raise hundreds of millions of dollars in a funding round that would value his company at about $5 billion. The YouTube star has begun talks with several financial firms and wealthy individuals about investing in his growing business empire.

Donaldson plans to use the money to fund a holding company that would own all or part of his various businesses. These include his chocolate brand Feastables, snack company Lunchly, and his video production company.

The business is already doing well financially. It generated more than $400 million in sales last year and is profitable, according to people familiar with the matter.

Talks about the potential funding are still in early stages. It remains unclear who will invest or if they will do so at the target price of $5 billion.

This would not be Donaldson’s first time raising money. He previously secured investment from firms including New York-based Alpha Wave Global.

MrBeast is the most popular creator on YouTube with over 368 million subscribers. He is known for his videos featuring large-scale challenges and giveaways that generate hundreds of millions of views.

The 26-year-old from Wichita, Kansas started his YouTube journey in 2012. He began by posting videos from his bedroom and has since grown into a global entertainment brand.

One of his most popular viral videos recreated the sets from the Netflix series Squid Game. The video cost $3.5 million to produce and invited 456 people to compete in challenges for a $456,000 prize.

Beyond YouTube

Donaldson recently expanded beyond YouTube. He created and starred in a show called “Beast Games” for Amazon Prime Video, which the company said was its most-watched unscripted series ever.

Amazon committed $100 million to produce the first season of “Beast Games.” Despite this large budget, Donaldson said he lost money on the production by spending too much on it.

“I lost tens of millions of dollars on Beast Games,” he said on the Diary of a CEO podcast. “But it’s about making Season 1 as good as possible.”

Amazon has agreed to make more seasons of the show. The original deal called for Amazon to spend more than $250 million across two additional seasons, though they are still working out the budget details.

Like many successful YouTubers, Donaldson has diversified his business interests. His chocolate brand Feastables sells products across the US and Canada.

He also launched MrBeast Burger, a food delivery business. This venture has been involved in some legal issues with Donaldson’s partner.

Donaldson is known for reinvesting much of his earnings back into his videos. He also puts money toward charitable efforts through his philanthropic organization.

Bloomberg News reported last month that Donaldson was participating in a bid to buy TikTok, showing his interest in expanding his presence in digital media.

If successful, this new funding round would help Donaldson further expand his business empire across both media and consumer packaged goods.