Henry Lowenfels

Dude Perfect raised $100M for global biz expansion. The deal is getting lots of buzz, but our team’s math signals challenges ahead. Let’s break it down… DEAL DETAILS • $100 - 300M growth capital investment • Led by Highmount Capital • Unclear if 100% invested upfront OR draw down of commitment over time • No previous capital raised USE OF FUNDS • Hire mgmt team to expand biz • More live experiences incl int’l tour, consumer products • Grow content formats, frequency, channels, global localization e.g. animation, TV, movies, streaming • Extend brand beyond 5 founders by building talent network • New HQ in Frisco, TX as prod facility and “family-friendly entertainment destination”: – Retail store, podcasts / gaming / fan UGC spaces, trick shot tower, DP museum, mini golf, restaurants – Original plans for 3-story, 30 acre facility est to cost $100M+, 2 yrs to build COMPANY OVERVIEW: Dude Perfect • Digital-native comedy and sports media brand • Faith-based mission: “We’re about giving back, spreading joy and glorifying Jesus Christ”  • Other YouTube franchises: “Stereotypes,” “Overtime”, “Bucket List”  • Media brand also incl books, mobile games, board games and toys, and merch / retail / food and beverage partnerships • 25 current team members PERFORMANCE HIGHLIGHTS • 60M YouTube Followers, 17B views • Est 2024 revenue: $50M per DP • Est 2023 and 2022 revenue: $25M and $20M per WSJ  • Consumer product partnerships incl Nerf toy line, Columbia Sportswear • Partnered with A Parent Media co to launch a streaming service • ESPN “30 for 30” doc premiering at Dallas Int’l film festival • TV series on CMT in 2016, later aired on Nickelodeon • Alternate broadcasts for Amazon’s Thursday Night Football • 4 live nationwide tours as of 2023 ORIGIN STORY • Founded 2009 by 5 friends at Texas A&M • Cofounders = twins Coby Cotton and Cory Cotton, Tyler Toney, Cody Jones, Garrett Hilbert • Started as YT channel featuring trick shot videos INVESTOR OVERVIEW: Highmount Capital • Growth stage and middle mkt PE fund for tech, media, healthcare • Founded in 2023 by jason illian and David Hawkins • 4 team members on website + advisor • 3 team members have faith-based ties per bios • No other investments listed on website other than DP My takeaway... I really like and support the trend of increased investment into YouTubers and digital-native media brands. But as I wrote about in my 2024 State of Creator x Media capital markets reports (will link them below), investment must match market and opportunity size. To ensure good ROI, and to set good precedent for future investment into our space. The DP bet is exciting, but could be overly optimistic based on our prelim math. My colleague Michael Booth's post breaks the math down (link below). More analysis to come in my Friday newsletter. —- I’m the founder of RockWater Industries. We do m&a and strategy advisory for media, agencies, and creator economy. My dm’s are open. #media #agency #creatoreconomy

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Join us tomorrow for an exclusive economy roundtable from 9:00 – 10:00 am PST, co-hosted by Liquid and Grit and Game Economist Consulting. Our special guest, Phillip Black, and I will delve into the success of Brawl Stars' revamped battle pass and the strategic changes that drove significant revenue growth and increased player engagement. We'll be discussing insights from this report: Brawl Stars' New Battle Pass Greatly Increases Depth of Spend (https://lnkd.in/gnUmENSm). Key points will include: - Transitioning to cash purchases instead of premium currency - Introducing a lower-priced premium pass and a new plus tier - Shortening the season length and reducing the number of milestones - Adjusting the XP system and rewards structure - Offering instant progress for higher-tier pass buyers - Providing early access to upcoming heroes through in-app purchases These changes have led to a 61% increase in U.S. iOS revenue and record-high daily active users. This roundtable is exclusively available to subscribing members of Liquid and Grit, and a recording will be provided for those who cannot attend. Don’t miss this opportunity to gain valuable insights into these successful strategies. DM me directly for an invite. #GamingEconomy #MobileGaming #GameDevelopment #RevenueGrowth #PlayerEngagement #EconomyRoundtable #BrawlStars

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Are you ready to take a deep dive into the success story behind Brawl Stars' revolutionized battle pass with Phillip Black? Join us for an exclusive members-only Economy Roundtable, co-hosted by Liquid and Grit and Game Economist Consulting, featuring special guest Phillip Black. 🌟 Key Takeaways: - Discover how Brawl Stars' new battle pass led to a staggering 61% increase in U.S. iOS revenue and all-time high DAUs. - Learn about the strategic changes that drove player engagement, including a shift to cash purchases, tiered pricing, and a revamped reward structure. - Gain insights into how shorter seasons, adjusted XP systems, and innovative IAPs contributed to the game's success. 🔒 This roundtable is exclusively available to Liquid and Grit subscribers. If you're a subscriber, don't miss out on this opportunity to learn from industry experts and gain a competitive edge in the ever-evolving world of mobile gaming. 🗓️ Event Details: Date: May 23rd Time: 9AM PST Location: Virtual 🎟️ Reserve your spot now by DMing me. Don't miss this chance to network with fellow industry professionals and unlock the secrets behind Brawl Stars' battle pass triumph! 🚀 #GameIndustry #BattlePass #EconomyRoundtable #BrawlStars #MobileGaming #Monetization

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We do talk a lot about Roblox as a model of platform mixing #social, #gaming, #creatoreconomy. One of the best example of a #metaverse. This article from Matthew Ball is complete and a deep-dive into the business model of this phenomenon. Really insightful - from R&D to accounting to engagement to revenue potential. https://lnkd.in/emmYmGyh

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Understanding AppLovin In the latest episode of the Mobile Dev Memo podcast, I present a long-form analysis of AppLovin's business and its significant recent growth. But understanding AppLovin the company is fundamentally predicated on understanding the market in which it operates, mobile games advertising, and the direct response digital advertising landscape more broadly. And so the podcast is structured in three parts: - Understanding direct response advertising - Understanding mobile gaming advertising - Understanding AppLovin’s growth Link below.

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PSA for CEOs: It’s your job to understand what potential acquirers want. Even if you’re not looking to sell yet. This idea was top of mind for me during GDC, where I met with several bigger studios. I took every opportunity to ask how they think about acquisitions: - What makes a potential acquisition interesting to them? - What thresholds do studios have to meet? - What metrics do they value most? This type of forward-looking market exploration is a shift for me. My primary focus for the last four years has been building FunCraft into a successful business. But my role needs to evolve. While FunCraft is growing and thriving independently, it’s still my responsibility to gauge what could make us an attractive acquisition down the road and understand how we build toward it. My advice to other CEOs: If an acquisition is something you can envision for your company down the road, don't plan for it in a silo. Talk extensively with potential acquirers and let their input inform your strategy early on.

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TikTok ban is jet fuel for $4B Triller / AGBA reverse merger. But this is financial engineering to salvage 2 struggling companies. Retail investors, be wary! Let’s break it down… TARGET: Triller • “AI-powered” music-focused social video platform • Founded 2015 by Bobby Sarnevesht and Ryan Kavanagh • Owns Bare Knuckle league, Amplify.ai, Julius, Thuzio, FITE • Raised $218M+ and TBD debt • Biz model = rev share, ticket sales / PPV / subs / merch, advertising, platform fees • Rapid US and int'l growth via TikTok bans (e.g. India) • 200 est employees PERFORMANCE • 2.2M creators, 450M+ user accounts • 2023 revenue of $45M, down from $54M in 2022 • Q3 YTD showed $104M loss, $378M in debt / liabilities vs $6M current assets • $1M cash & equivalents CONTROVERSIAL HISTORY • 2022 Sony sued for unauthorized music use • 2023 UMG sued for same reason  • Owes music rightsholders $23.6M in unpaid fees • 2022 called off $5B reverse merger with video ad platform SeaChange • 2022 missed M&A payment to Verzuz owners • Filed for NASDAQ IPO in Aug 2023 and Jan 2024 • Reputation for inflating users and usage TARGET: AGBA • Tech-driven wealth mgmt and financial services • 4 biz lines: Platform, Distribution, Healthcare, Fintech  • Founded 1993 by TBD • Focuses on the Guangdong-Hong Kong-Macao Greater Bay Area • Biz model: interest income, commissions, asset mgmt fees • Publicly listed on NASDAQ, holding co registered in BVI, operates in HK  PERFORMANCE • Stock fell 80% 4Q 2022, has traded < $1 since July • $140M market cap, $19M of cash ($17M is restricted), $18M debt • 400k individual and corp customers • 2023 revenue of $54M, up 74% YoY, but a loss of $43M • 176 est employees DEAL DETAILS • All stock deal, AGBA acquiring Triller in reverse merger • New combined AGBA will be 80% owned by current Triller stockholders and RSU holders • Current AGBA shareholders will own 20% of new combined co • Expected May close VALUATION • Triller at $3.2B and AGBA at $800M, for $4B total • …BUT seeking alpha estimates as of 4.23 AM stock price, Triller’s real valuation is $1.3B •….and based on TikTok share repurchase valuation of 17x revenue, implies $765M Triller valuation • As of 4.23 AM stock trading at $2.40, up 500% from $0.40 the day pre announcement DEAL RATIONALE / SYNERGY • Leverage Triller’s large social audience to drive traffic to AGBA’s financial services and create more engagement via live events, webinars, etc  • Create personalized AGBA financial services via Triller user analytics and insights • But IMO here’s the real angle… • “access public capital markets and secure the liquidity needed for rapid growth” – aka a cash grab from retail investors • Triller is being aggressive when competitor TikTok faces US regulatory challenges (senate vote is today, Tuesday!) More analysis to come in my Friday newsletter! --- I’m the founder of RockWater Industries. We do m&a and strategy advisory for #media #agency #creatoreconomy. DMs are open.

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🔋⚡️Calling all gaming & entertainment website owners! Big news at Overwolf today as we announce the acquisition of industry-leading gaming ad tech company Nitro (formally Nitropay), bringing unprecedented net-7 payouts to all website publishers on our platform. As part of our aligned vision with the Nitro team to revolutionize the ad tech industry, we’re offering website publishers unparalleled opportunities for monetization including: 🏆Net-7 payouts ⚡️Lightning fast ad loading ☎️Same-day support 📈More demand for ad inventory Prior to the acquisition, Overwolf was already ranked by Comscore, Inc. as a Top 10 US Game Publisher, with our unique proprietary solution allowing advertisers to reach over 45 million monthly gamers across premium game titles like Minecraft, Fortnite and League of Legends. Our partners include global powerhouse brands and media agencies such as P&G, Pringles, KFC, Intel, Monster Energy, Dentsu, WPP, Havas and more. Today, we more than double our reach to 100M unique gamers monthly across a rich ecosystem of desktop apps, mods, private servers and now over 500 premium websites - becoming a simple marketing buy for anyone looking to advertise to gamers at scale. A big welcome to Cody Bye and the Nitro team joining our growing pack of wolves. Read more about the acquisition here: https://lnkd.in/dRs_MzKN If you’re a gaming/entertainment website owner interested in net-7 payouts and increased demand for your ad inventory reach out to our Nitro team via the website: https://lnkd.in/dAxtkU5V #Publishers | #GamingIndustry | #GamingAds | #Monetization | #AdTech

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In one click you can get the license for even 500 Copyrighted Movies/Sports/Music brands directly to your FAST/SVOD/Mobile app/AVOD/CTV/Payment & Billing Systems. Many companies have Raised Funds or made Exit based on our content. #entrepreneurship #Innovation #Management #HumanResources #DigitalMarketing #Technology #Creativity #Future #Futurism #Entrepreneurship

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