Private Equity (PE) firms have raised billions of dollars to acquire YouTube channels as strategic investments. Some acquired channels include: Veritasium Dude Perfect Donut Media the Game...
Private Equity (PE) firms have raised billions of dollars to acquire YouTube channels as strategic investments.
Some acquired channels include:
Veritasium
Dude Perfect
Donut Media
the Game Theorists
Fern
Mentour Pilot
Simple History
Task and Purposes
Economics Explained
VTubers
and numerous, numerous other popular channels you've probably heard of.
These acquisitions are driven because:
PE firms have saturated existing asset markets. So, they are looking for anything with potential.
Legacy media companies are losing viewership from traditional mediums (like cable) and need to pivot.
Their initial foreray into this space failed (see: the fall of new media companies like Vice, Buzzfeed).
As a result, these acquisitions now target individual YouTube content creators, who are more flexible and can target specific audiences and niches. These channels then start shifting towards more generic, safe, and algorithm-friendly content to meet investor demands for growth, often sacrificing creativity for predictability.
With the pressure to increase revenue, these channels pump out more videos with less accuracy & fact-checking, drop creatively risky ideas, and host more questionable sponsorships. Or worse, push out blatant videos-as-ads (*cough* Veritasium *cough*)
Also, while YouTube channels can make a lot of money, they represent high-risk investments because they often depend on a single personality (who could quit, create competing channels, or risk controversy). These firms mitigate this by pushing new hosts, launching sister channels, requiring approved scripts, creating branded products, merch etc.
You may have already noticed this trend. New videos from many previously-reputable YouTube channels that now feel uninspired, samey, and have shifted towards trend-chasing. If so, there's a chance it's been acquired.
This trend undermines the creativity and uniqueness that made OG YouTube compelling, where independent creators took more creative risks. My thoughts: The channels described in this video are...
This trend undermines the creativity and uniqueness that made OG YouTube compelling, where independent creators took more creative risks.
My thoughts:
The channels described in this video are merely the publicly known acquisitions. Since channels aren't obligated to disclose private equity ownership and would prefer to keep quiet, it's likely other popular channels you watch have been approached by PE firms.
Linus mentioned he turned down a $100 million offer. But it's not just the giants. Even smaller channels have been offered a buyout.
These firms do like to target specific niches, like the education space. Also noticeable in the science, economics, financial, or geopolitics spaces.
In an unstable industry, I can understand why Youtubers would choose a massive payday. Especially if they wish to retire from YT. However, I hope they understand what they're doing to their reputation and their channels. (This is private equity after all, they'll squeeze blood from a marble if they could!)
That's why i commend people like Tom Scott, who choose to bow out gracefully, staying true to his principles.
I know some people have been feeling off about Veritasium lately but personally I feel they’re still doing pretty good work. Mark Rober on the other hand is basically Mr Beast these days. Very...
I know some people have been feeling off about Veritasium lately but personally I feel they’re still doing pretty good work. Mark Rober on the other hand is basically Mr Beast these days. Very unpalatable and corporate.
Mark Rober’s output is so disappointing now. He’s always been the clickbait king but his videos always had interesting science-forward content first, which made taking the bait well worth it. But...
Mark Rober’s output is so disappointing now. He’s always been the clickbait king but his videos always had interesting science-forward content first, which made taking the bait well worth it. But now it seems like the clickbait is made first and the video is made to fit it. And every single video he makes is a glorified advertisement for his increasingly large business audience. The comparison to Mr. Beast is apt.
Well. That was depressing. By its nature of always needing more profit, more growth, Private Equity is kind of the standout cancer of (mostly) unregulated capitalism.
Well. That was depressing.
By its nature of always needing more profit, more growth, Private Equity is kind of the standout cancer of (mostly) unregulated capitalism.
That constant need for growth always leads to a race to the bottom. You end up making lowest common denominator content to have wide appeal and boost the numbers. And eventually you just end up...
That constant need for growth always leads to a race to the bottom. You end up making lowest common denominator content to have wide appeal and boost the numbers. And eventually you just end up with something like Mr. Beast.
One note: the video lists PRIME Hydration as a success story of influencers creating real world products. It’s more mixed than that: PRIME had a brilliant initial run, but sales have collapsed by...
One note: the video lists PRIME Hydration as a success story of influencers creating real world products.
Private Equity (PE) firms have raised billions of dollars to acquire YouTube channels as strategic investments.
Some acquired channels include:
These acquisitions are driven because:
As a result, these acquisitions now target individual YouTube content creators, who are more flexible and can target specific audiences and niches. These channels then start shifting towards more generic, safe, and algorithm-friendly content to meet investor demands for growth, often sacrificing creativity for predictability.
With the pressure to increase revenue, these channels pump out more videos with less accuracy & fact-checking, drop creatively risky ideas, and host more questionable sponsorships. Or worse, push out blatant videos-as-ads (*cough* Veritasium *cough*)
Also, while YouTube channels can make a lot of money, they represent high-risk investments because they often depend on a single personality (who could quit, create competing channels, or risk controversy). These firms mitigate this by pushing new hosts, launching sister channels, requiring approved scripts, creating branded products, merch etc.
You may have already noticed this trend. New videos from many previously-reputable YouTube channels that now feel uninspired, samey, and have shifted towards trend-chasing. If so, there's a chance it's been acquired.
This trend undermines the creativity and uniqueness that made OG YouTube compelling, where independent creators took more creative risks.
My thoughts:
The channels described in this video are merely the publicly known acquisitions. Since channels aren't obligated to disclose private equity ownership and would prefer to keep quiet, it's likely other popular channels you watch have been approached by PE firms.
Linus mentioned he turned down a $100 million offer. But it's not just the giants. Even smaller channels have been offered a buyout.
These firms do like to target specific niches, like the education space. Also noticeable in the science, economics, financial, or geopolitics spaces.
In an unstable industry, I can understand why Youtubers would choose a massive payday. Especially if they wish to retire from YT. However, I hope they understand what they're doing to their reputation and their channels. (This is private equity after all, they'll squeeze blood from a marble if they could!)
That's why i commend people like Tom Scott, who choose to bow out gracefully, staying true to his principles.
I thought Veritasium's quality had been in decline in recent years, now I know why.
I know some people have been feeling off about Veritasium lately but personally I feel they’re still doing pretty good work. Mark Rober on the other hand is basically Mr Beast these days. Very unpalatable and corporate.
Mark Rober’s output is so disappointing now. He’s always been the clickbait king but his videos always had interesting science-forward content first, which made taking the bait well worth it. But now it seems like the clickbait is made first and the video is made to fit it. And every single video he makes is a glorified advertisement for his increasingly large business audience. The comparison to Mr. Beast is apt.
Well. That was depressing.
By its nature of always needing more profit, more growth, Private Equity is kind of the standout cancer of (mostly) unregulated capitalism.
That constant need for growth always leads to a race to the bottom. You end up making lowest common denominator content to have wide appeal and boost the numbers. And eventually you just end up with something like Mr. Beast.
Hearing that Veritasium had been bought out hurt. Genuinely and deeply hurt.
I don't know how well this video was researched since they included Smosh and the original duo own it now
Sigh. Yet another problem that can only be really solved by banning ads and/or limiting personal wealth.
One note: the video lists PRIME Hydration as a success story of influencers creating real world products.
It’s more mixed than that: PRIME had a brilliant initial run, but sales have collapsed by 71% in the UK.