Shark Tank US | Mark Cuban's Top 3 Biggest Deals

Your experience is not Rugged Maniac, your experience is organizing adventure events? the bull run is just another variant of the same thing that is exactly right, so the growth potential of this company is not just within Rugged Maniac, what will the cash flow be next year in your optimistic scenario for both companies. I mean, we believe. They could be a 20 million event this year, guys, I like the business, but if I come in and give them money and all of a sudden it's like where are Brian and Rob? Oh, they're chasing the Bulls, what am I going to tell them?

As an investor, when I don't get your full attention, I want a piece of the Bulls, no joke, no. That's not what I'm going to say. I'm going to say they can die. I want to get back into my investments or I'll sue you because you have a conflict of interest. No investor says, "Oh, the existing business is dying. Sell me one." part of the new well, you don't do that to investors, you align your interest with them one hundred percent when you start talking about a million dollars, you're not wrong, right, it's a real investment, right, the other, the element for me.

I love the idea. I also love the fact that you are building a client base for the other events you can do later for me. They are together. Here you have an offer. Surely both businesses combine. I'll give you 1.5 million for 25 percent of everything, okay, it's the only offer we have. Mark, you said you were interested. I'm not very. I love that business. If I didn't know about this other business, I'd probably make an offer right now. Sure, but I want to hear what you say to Rob. I think I'm making you an offer. I think the business is worth six times ebitda, 1.5 times revenue.

More or less good and I'm setting the price. I think it's generous. I am evaluating it because I see the advantages in the other business. Okay, asking for a million dollars for this business was already a challenge. Have another agenda and another business on the other side. My gut feeling is that no matter what I would be screwed. working with you I wouldn't trust you I'm out ok thanks for your consideration no here I thought what handsome guys they look, what a great video but then at some point the surprise of the bulls and oh yeah We'll include that in the deal and I don't think maybe They intended it that way, but for some reason they lost my trust, but anyway I'm sorry to hear that, but we appreciate your consideration, well, guys, you have, you have, uh, we. you have an incredible, you have an offer on the table, yes, we make, what are you going to do, an offer that is lower than what we wanted, but no, let me make you an offer higher than what you want.

Well, of course, I'm someone else who wants to. throw an offer in the ring I'm still listening well Mark, your concern is that you want us to focus all our energies on no, no, it's not that you came in and tried to sell us a business and separated the two. In my opinion, we are overvaluing the other business and if you have such a high opinion of that business, that is probably where a lot of your attention will be focused and as an investor I don't think it is worth the value that is placed on it. because you had an event for two hundred thousand dollars you said my values ​​are too high yes wow now Mark is making me nervous because I have over 1.5 million 25 that gives you a value of about six million dollars for the combined businesses The longer we wait the less comfortable I am starting to feel very cloudy.

The waters are a bit here and maybe I'll give you a look at Robert. You might want to listen to this. I think your offer should be for 33 a third. You become the third party. Weapons of the Northeast. and then I would go 50 50 with you hmm, I'm fine with that. I like to go up to a third. 1.5 million for a third was a combined business. I'm with you Uncle Kevin, yeah I thought you might be because I think you overpaid Rob, isn't it interesting what happened? You had an offer here now we're here the longer we stay here, so what I'd be willing to do is 1.5 million, but it's for 25 percent of the two companies combined, okay?

Let's go discuss this, consider both offers and we'll come back. There are a lot of benefits here with these guys. I'm not sure what there is to discuss. Mark, you made a better offer than us. Mine. Mark did the same as your initial offer. The challenge is that when they come back, you drop this dead weight right here and go back to your initial offer, then you will be overpaying. I don't think they'll accept any of the offers, oh I think they will. Gentlemen, let's summarize what happened. Here you have two different offers, the first, Mr.

Cuban, is 1.5 million for 25 from his company, which by the way was exactly the same offer I made him and then he spent half an hour telling you how bad the offer is. business of him. I know I know the other one. The offer is for the same amount of money with 33 and a third of his business, what are you going to do? We went out and discussed that we would eventually like to reach an agreement with you. We wanted to go back and say, listen. I need 2 million for 25 percent instead of doing that. I'd like to split it in half and go to 1.75, okay, you're going to work, baby, I'm looking forward to it, I'm absolutely looking forward to it, we'll make some money, what do you do?

We lose, but Robert, why do we do that? Thank you for your consideration, thank you guys, thank you, excited, we're very excited, we accepted that offer from Mark because we realized that Mark offers more than just the money. Mark offers his experience, he offers you his connections. I know that only great things can come from a well-made 1.75 times 25. In fact, I'm surprised that the values ​​have dropped. Next in the

tank

is an entrepreneur who believes there is a lot of money to be made from Big Scares, everywhere he goes there are zombies, hello

shark

s. I'm Melissa Carbone from Los Angeles, my company is 1031 Productions and I'm looking for two million dollars in exchange for $10 million from my company. 1031 Productions is an entertainment company that creates, owns and produces live horror attractions.

Our most popular attraction is Los Angeles. Los Angeles haunted hayride and it's not for the faint of heart

shark

s when you take our hayride you are entering the pitch black forest where demonic forces lost souls. Psycho fun awaits you at every turn. See these lights just when you think the terror is over. Think. again, oh god bless you, don't look at me, I'll kick your ass, okay Melissa, you know what really scares me is your assessment, so two million dollars times ten percent imputes a value of 20 million of dollars to this terrifying ride through the hair. business, tell us why you are worth 20 million dollars, we do attractions all year round, we have the Los Angeles haunted hayride which is our seasonal attraction here at La 17 nights, every night is sold out, we do about 1 .8 million dollars at this time in October. ah 5.8 was really good in 17 days.

We have another attraction called Great Horror Campout that we just launched, which is a summer attraction. Great Horror Campout is our way of being a non-seasonal company that is a completely immersive overnight camping experience. Horror theme oh. No, it's 12 hours, we take 2,000 campers, put them in tents and have an incredibly interactive experience that includes everything from a hill, it's basically one hell of a summer camp, yeah, 1.8 million at the end of the 17 days , what's left. us $1.2 million to produce L.A.'s least haunted hayride, so after that I'm left with $600,000 in free cash, yeah, I mean, is it year after year because right now we're in a release mode new attractions, we're launching a Haunted Hayride in New York, which is what we're looking for with some of this money for the Great Horror Campout.

We're launching next year in 10 cities on the west coast, so that's the problem because they're very, very, very expensive. produce and create well camps are cheap to produce how much advertising does a promotion do we spend about three hundred thousand dollars we do a ton of radio my background is me I ran Clear Channel Los Angeles for 10 years so my advertising

mark

eting and one of my other partners commercials are still on Clear Channel, so we know how to make a dollar go a long way in a

mark

et. How many unique individuals come through the ride we have?

We have 50,000 people we sell to every night, so this year is ours. The first year we increased our maximum capacity to one hundred thousand eight hundred. In fact, we are doubling our maximum capacity this year every night for 17 days, every night. That is incredible. Can I extrapolate and say revenue will be 3.6 million this year? Yes. If we sell out, that means this will make just over a million dollars if all goes well. Well, now you are a smart woman. I'm trying to make the jump. Now we have to get back to reality with your request for 20 million dollars.

Yes, we are going to give you a fair chance to win a million dollars before taxes. Okay, yeah, it's about 700,000 after taxes. If I give you a multiple of 10, you're worth seven million dollars. How come I'm going to pay 20 for seven million? business in dollars if everything goes well that is the horror story you brought here you have overvalued your business thank you we have had major entertainment companies in Los Angeles that have already given us offers to buy our company and this is what they are valuing Why are you so greedy? Pig, not greedy. I have very, very high hopes for the company and want to grow fast just because a Hollywood Bozo offered you a $20 million valuation.

You know what the horror show is. Listen to discuss valuation. all the time but they only want to give you two million dollars at ten percent. I'm projecting for New York's Haunted Herod, which hasn't happened yet because he's the same model in Los Angeles, we're just dropping him, letting him go geographically. a different model because it never rains in Los Angeles Melissa I don't agree that your risk analysis is correct it never happens that everything you implemented was successful on the first day that's ridiculous to me it's not difficult to get a lot of people to come to the attractions The hard part is making it a great experience so they want to come back.

This is all fun and games, but we're talking about money. I can't, I can't get there. I'm outside, Melissa, so you can come over. Based on your projections for next year, everything has to work perfectly all the time. I don't see you hitting those numbers next year. I'm beside myself right now to give you two million dollars. I feel like it would take a long time to watch that again, so for that reason I assume the risk isn't as great as you'd probably think. I mean we will launch these attractions no matter what I know we can launch them faster if we have this money we can launch them.

I'm now a high-octane fear expert. Yes, I can tell you that we do this much cheaper. We wore a piece of jewelry and walked around where I grew up. Yeah, that won't give you a fair enough high octane. I have to insult you with my offer, go ahead and take shelter, that's what it's worth, it's already an offer, yeah, okay, then I'll give you two million dollars for forty percent, okay, come on Mark, it's a yes or a no to him, can I counter it? Of course you can counter two million for twenty percent. I'll accept that offer.

Really yes, incredible, thank you.