'Shark Tank' contestants turn down $1 million offer for their soft toy business in wild TV moment

The entrepreneurs' decision came as a big shock to the sharks, and they did not hide it.

PUBLISHED 6 HOURS AGO

Screenshots showing Lori Greiner (L) and the entrepreneurs on "Shark Tank." (Cover image source: YouTube | Shark Tank Global)

Million-dollar deals are rare on “Shark Tank,” and any entrepreneur who bags such an investment is expected to be grateful since it's a dream come true. But some founders are firm about what they're looking for from the sharks, and refuse to budge no matter what. That is exactly what the founders of a children’s toy company did in an earlier episode of the show. The entrepreneurs named Ray Philips and Alvin Uy were asking for $260,000 for 10% of their company, named Soapsox.

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They made plush animals whose main purpose is to make it easier for parents to make their kids take a bath, which is a challenge for many. If the kids have something that they love, like a stuffed animal, with them in the bath, things potentially get a whole lot easier for everyone. The firm's stuffed animals are sponges that can be soaped up. So not only are the children entertained, they’re getting bathed as well. In principle, it sounds great, but there were a couple of problems. First of all, each Soapsox toy was worth $19.99, which is an extremely high price for a plush toy.

Screenshot showing the Soapsox products. (Image credit: YouTube | Shark Tank Global) — Screenshot showing the Soapsox products. (Image source: YouTube | Shark Tank Global)

According to Kevin O’Leary, the maximum they could sell for was $12.99. Secondly, a $2.6 million valuation was ridiculous to all of the sharks. The company was on course to make $600,000 from sales, but it still did not justify the valuation. One by one, four sharks said no to a deal until Daymond John was the only one left. He offered the money that the entrepreneurs asked for, but wanted a third of the company.

This was too much for Uy and Philips to give up, and they countered with terms that sounded even more ridiculous than their initial conditions. The entrepreneurs said that they’d be willing to give up 15% of the company but wanted $350,000. John wasn’t interested at all and stuck to his original offer. That’s when the duo received a second offer out of nowhere.

Screenshot showing Daymond John on "Shark Tank." (Image credit: YouTube | Shark Tank Global)

Lori Greiner and Robert Herjavec teamed up to offer a million dollars to buy out the entire company. The other three sharks seemed stunned by this, as did the entrepreneurs. The sharks had a different vision for the product and believed that the entrepreneurs might not have shared it at that point in time. What was even more surprising to the sharks was the response from the entrepreneurs.