Mark Cuban offers 6-figure deal to founders whose pitched involved pranking the 'Shark Tank' judges
"Shark Tank" isn't all about serious business, since all kinds of bizarre and at times hilarious pitches have been seen on the show over the past 16 seasons. However, very few come close to the sheer madness that "Prank-O's" gift boxes triggered on the sets. Entrepreneurs Arik Nordby and Ryan Walther pitched their special gift boxes that are designed to prank the receiver as the name suggests. They were so good, that despite falling for the trick, celebrity billionaire Mark Cuban offered them a $640,000 deal.
Nordby and Walther appeared on Shark Tank Season 10 but instead of pitching their real business, they started with a skit for the company Ryanarik. They presented it as a future-forward company that makes innovative products such as a snack hat, which is a food plate that customers can wear on their heads.
They further explained that they were not a one-product company and had more items such as shoes for dogs that double up as brooms and a car sauna. They then presented the Sharks with their gift boxes of products such as 'Pet VR', 'Roto Wipe', 'Crib Dribbler,' and more.
However, up until this point, the Sharks were only getting played. The founders then revealed that their real company is "Prank-O" and the boxes that the Sharks had were empty prank boxes. "That's the whole point. They sell the boxes! That's brilliant!" Cuban immediately exclaimed. The two founders explained that customers can hide their actual gifts inside the prank boxes and watch the madness ensue as the receiver opens them. They then mentioned their ask of $640,000 for 8% of their company which seemed to turn down the energy in the room.
The founders shared that a single unit costs them just $0.66 to manufacture while they sell them to customers for just over $8 per box. Most of the company's sales came from retail and e-commerce, which the Sharks saw as a positive until further details were shared.
Arik and Ryan shared that the company had earned $10 million in gross revenue since their launch in 2013, which impressed the panel. However, it also turned out to be an unintended prank, as they added that they had millions in debt as well. The founders explained that they made the mistake of venturing into physical products and lost sight of the empty gift box idea.
They explained that they took $3 million as a line of credit, a third of which they had spent. However, they still expected to bring in about $2.8 million a year with the original idea. With this, the first Shark to drop out was Lori Greiner citing concerns over the seasonality and stability of the product. Daymond John followed suit saying that the business wasn't structurally sound for an investment. However, there were two Sharks who were keen on pranking the world.
Cuban was the first Shark to make a move for Prank-O. The billionaire investor offered the founders the $640,000 they asked for but for a significant 25% of the company. Cuban who owned a stake in the NBA team Dallas Mavericks, claimed that they could do big things by bringing the company's products into the sport.
After listening to Cuban's offer, Kevin O'Leary came up with his own wonderful offer. He put up the same $640,000 but for 38 cents royalty per box for perpetuity. O'Leary explained that he had several other gifting-focused businesses that could help Prank-O. After some intense negotiation, Ryan and Arik chose to go with Cuban's deal as it allowed them to keep their margins high.
However, as per the Entrepreneur, the deal with Cuban was never closed. Despite lacking the investment, the company did exceptionally well during the pandemic and they still sell a variety of prank gift boxes on their website and Amazon.
