MrBeast and the strange things about building a $5 billion empire

(Dan Tri) - MrBeast owns a $5 billion empire but has suffered heavy losses in the content sector. From selling chocolate to the ambition of opening a bank, what is the real strategy behind the million-view videos?

If you think MrBeast is just a guy who makes charity videos or crazy challenges on YouTube to get views, you are wrong. Jimmy Donaldson (MrBeast's real name) is one of the most interesting and unusual entrepreneurs in the world today.

Without an MBA or any Harvard business curriculum, Donaldson runs Beast Industries, a company valued at more than $5 billion. MrBeast’s story is not just about fame, but a valuable lesson in how to turn attention into real cash flow in the digital age.

At the age of 27, MrBeast owns a YouTube channel that is about to reach 500 million subscribers (larger than the US population) and runs Beast Industries, a corporation valued at more than 5 billion USD (Photo: Rolling Stone).

Financial Paradox: Losing $110 Million Selling Candy

Beast Industries' financial picture would make any traditional financial expert dizzy.

In 2024, Donaldson's company recorded a loss of up to 110 million USD. The main reason was "burning money" on content production. On average, each MrBeast video cost 3-4 million USD to produce. Despite having a huge number of followers (nearly 500 million followers) and each video reaching an average of 250 million views, revenue from YouTube advertising (AdSense) only brought in about 1.25 million USD/video.

A simple calculation of spending 4 million and earning over 1 million seems like a "suicidal" business model. But for Donaldson, video is not the end product to make money. Video is the world's largest and cheapest marketing funnel in terms of reach.

Donaldson figured out a formula he calls the “1% rule”: If a video reaches 250 million views, he only needs 1% of that audience (2.5 million people) to buy a $3 Feastables bar, and he’ll instantly generate $7.5 million in revenue. The profit margin from consumer goods far exceeds the platform’s advertising dollars.

The move has proven to be the right one. Last year, Beast Industries earned about $450 million, with the Feastables candy business alone contributing $200 million and expected to double in the coming years. Donaldson has lost money on content to win big on commerce—a strategy of “losing money to attract customers” taken to a global scale.

From YouTuber to multi-industry "boss"

Not wanting to depend on YouTube or TikTok's algorithms, Donaldson is aggressively building a sustainable, diverse business ecosystem and even encroaching on traditionally tightly regulated fields.

Jeff Housenbold, former venture capitalist and current CEO of Beast Industries, revealed that the company is operating on three main pillars: content, consumer goods, and a platform that connects content creators.

Expanding into television and reality entertainment

Not just limited to the phone screen, Donaldson has signed a deal with Amazon to produce the reality show "Beast Games" on Prime Video (season 2 is expected to air in January 2026).

In addition, his ambition to "step out into real life" is materialized by the Beast Land amusement park in Saudi Arabia. With ticket prices ranging from $7 to $66, this is an experiential business model that is completely immune to changes in social media algorithms.

Ambition to enter finance and banking

This is perhaps the boldest move yet. Last month, Donaldson filed a trademark application for “MrBeast Financial.” In his fundraising presentation, he outlined nine potential financial products, including student loans, insurance and even cryptocurrency.

Donaldson’s target is a young, mostly male customer base – people who are not yet connected to the traditional banking system but have absolute faith in their idols. If successful, MrBeast will own a huge recurring revenue without having to bury himself in a coffin or perform dangerous challenges to keep the heat.

Governance problem and IPO vision 2026

To transform a spontaneous video crew into a billion-dollar corporation, improvisation had to be replaced with management discipline. Jeff Housenbold was brought in as CEO to carry out this mission: to turn “creative chaos” into a serious business.

Shortly after taking office, Housenbold slashed the budget by $100 million and poached senior executives from TikTok, Snap, and NBCUniversal. Beast Industries' ultimate goal is to become profitable by 2026 and move toward an initial public offering (IPO).

An interesting point in Donaldson's business thinking is the clear distinction between platforms. Although there were rumors that he wanted to buy TikTok, he did not appreciate the quality of users on this application.

“If you want to sell $100 million worth of stuff, YouTube is the clear winner,” Donaldson said at the DealBook Summit. He said YouTube content is less “brain-degenerative” and has a deeper audience engagement, making it a better platform for branding.

MrBeast believes that YouTube content is “less degenerative” than TikTok (Photo: NYT).

Can "kindness" go viral forever?

Jimmy Donaldson is treading an unprecedented path. He believes that in the attention economy , those who hold the audience's "eyes" get to write the rules.

However, Beast Industries' biggest challenge is not just financial. As it becomes a cumbersome machine with pressure from investors and future shareholders to make profits, will MrBeast still maintain the "craziness", uniqueness and sincerity - the things that made 500 million people love him?

Those are still open questions. But one thing is certain: Jimmy Donaldson is proving that in the digital age, the person who holds the attention of the crowd holds the "gold mine", as long as they know how to dig for it instead of just counting views.

As Jeff Housenbold puts it on the company's vision: “We're building kindness to be a virus, and business is the vehicle to spread it.”

Source: https://dantri.com.vn/kinh-doanh/mrbeast-va-nhung-dieu-ky-la-ve-viec-xay-de-che-5-ty-usd-20251204100500023.htm