Kevin O'Leary's Royalty Offer May Bankrupt Chubby Buttons - Shark Tank

Mike Cherkezian and Justin Barad from wearable action remote company, Chubby Buttons, receive a steep royalty offer from Kevin O'Leary. Mark Cuban tells Kevin he will bankrupt the two best friends with the offer. Lori Greiner forbids them to take it. Will they throw caution to the wind and accept? From 'Shark Tank' season 14, episode 17. Watch 'Shark Tank' FRIDAYS 8/7c on ABC. Stream on Hulu.

[commanderkeen]

Sometimes I wonder if Kevin even remembers he's on camera 😂 It's like he absolutely does not care about the people running their business, just wants to structure a deal where he can squeeze every drop of juice out for himself. A deal like that would crush them

[ranathatishetti]

Kevin: “ I am not that greedy”.
Asks $10 royalty for every product sold.

[ericlarson]

$10 off a $12 profit? He would’ve ran them into the ground

[uddhavramgolam]

10 dollars was too much i am glad they decline it

[shybzrk]

Might be the worst offer I've ever heard in Shark Tank history

[thebastardgift]

"In business, as in all else, you have to know when to walk away." W. Jones

[FurySK]

Hard to ever do $10, so i don't blame them for pushing the # way down. I'm surprised they didn't think to ratch it back. For example, $6-$8 initial royalty until initial 250k is returned, then cut that to $4 until 500k then $2 until 750k. While not every company gets a long term growth bump from the show, the show itself is worth about $500k-$1m worth of marketing exposure these days (in the height of it's existence, ~$1.5m exposure in terms of marketing dollars), so they could've likely escaped the heavier part of the royalty within 2-3 weeks of the airdate of the show. They derisk kevin with the 60 day turnover of his money. they derisk themselves by not being bankrupt by the royalty when it only cuts 33% and then 17% of their profits, assuming no customer acquisition costs drop (which it should given the marketing exposure at least some, plus the fact that these episodes then repeat air on ABC while in the last two seasons of their episode base and then cnbc and other streaming services thereafter).

[nerdydaddyo]

Their loss. I have used multiple Chubby Buttons remotes (versions 1 and 2) for YEARS and couldn't imagine life without it.

[Razear]

There's a niche for this device, but it will probably end up becoming obsolete over the the long run. There's already certain headphones on the market that have voice-activated control and have the functionality to skip songs and whatnot.

[snowballandcocopuff]

I want every dollar back that you profit plus 110 percent of your company. I want your house, your kids and your wife. lol

[gabhandebrun]

Even mr.wonderful doesn't do these deals, 10$ royalty on a 12$ margin
Is insane glad they didn't take it

[ykd]

Those saying Kevin's offer was greedy, how can he accept pitchers offer where it would take 278 years to get his money back!

[michaeljames]

I absolutely hate these no context shark tank clips. Just don’t post them. If we can’t even see what the product and current company growth is in relation to sales, what’s the point?

[bgaskin]

Clickbait title. More like "would have bankrupted". The offers you turn down don't make you worse off.

[whatsadog]

Lol he didn’t accept $3 per unit so they tried again at $1. and goodbye. Wake up dudes

[wildtigers]

$10 royalty on a $12 product. 😂
Thats 83% of their revenue gone, and that's before expenses, interest, taxes

[lyndamac]

If I was in Shark Tank and only had a offer from Kevin I would walk out, I don't like him or trust him.

[vivekkapur]

Kinda sad I’ll say this but maybe it’s time to move on from Kevin. The whole purpose of this show was to promote entrepreneurship not structure deals to squeeze every drop of juice from them.

[mustangx]

Thank goodness you didn’t take that deal