Black Sands Entertainment
DEAL
EPISODE SUMMARY
🕓 Air Date: January 7, 2022
Asking For:
$500,000 for 5%
Investor:
Mark Cuban, Kevin Hart (50/50)
Deal:
$500,000 for 30%
PRODUCT SUMMARY
Black Sands Entertainment aims to provide diverse and historically rich content representing the Black community through comic books and animated series.
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Background Story
Black Sands Entertainment emerged from a shared vision among the founders, Manuel, Geiszel, and Teunis, to bring to light the often overlooked historical achievements of the Black community predating the era of slavery. Their pioneering work began with the release of “Black Sands the Seven Kingdoms,” a title that swiftly garnered attention and admiration, selling over 100,000 copies. Encouraged by the enthusiastic response, they set their sights on the creation of an animated series to further amplify their message.
Manuel, drawing from his background as a military veteran, infused the narratives with a deep-seated passion for history and a profound appreciation for diverse cultures. Teunis, leveraging his extensive expertise amassed over 25 years in prominent studios, assumed a pivotal role in spearheading the animation division, ensuring the seamless transformation of their vivid imaginations into compelling visual storytelling.
Geiszel’s adept management skills played a crucial role in orchestrating the intricate business operations, enabling the team to navigate the complexities of the industry with finesse and resilience. Their collective journey, marked by self-education and relentless determination, underscores their unwavering commitment to fostering a platform for narratives that have long been marginalized in mainstream media.
The Product
“Black Sands the Seven Kingdoms,” serving as the cornerstone of their publication lineup, stands alongside a collection of 12 additional comic book titles that collectively embody the essence of Black Sands Entertainment’s creative vision. The company adopts a direct-to-consumer model, facilitating the sale of physical books at a retail price of $20 and a wholesale price of $8, maintaining a lucrative margin over the production cost of $2 per unit.
In a strategic move to diversify their content and expand their market reach, Black Sands Entertainment invested $250,000 into the development of an animated series, demonstrating a keen commitment to enhancing their storytelling through captivating visual mediums. Fueled by a rich tapestry of diverse cultures, their content seamlessly intertwines historical elements with engaging narratives, appealing to a broad audience of educators and enthusiasts with a deep-seated passion for historically accurate and culturally diverse entertainment.
Recognizing the significance of accessibility, the company strategically offers its products through multiple distribution channels, facilitating seamless and widespread consumer access. This approach aligns with their overarching mission to ensure the pervasive availability of their compelling narratives and foster a community of avid supporters and enthusiasts.
How It Went
The company’s position before Shark Tank
Black Sands Entertainment has displayed an impressive trajectory of growth, evident through their commendable revenue figures, which have surged from an initial $40,000 in their debut year to a robust year-to-date turnover of $800,000. This upward trajectory signifies the resounding success of their direct-to-consumer sales approach, underpinned by a steadfast focus on building a formidable intellectual property foundation.
The company’s sound financial health is underscored by a current profit of $108,000, effectively reflecting their adept management of operational expenses and a strong emphasis on sustainable growth. Bolstering their financial resilience, Black Sands Entertainment maintains a substantial reserve of $300,000, indicative of a robust liquidity position that affords them the flexibility to explore strategic expansion initiatives. Embodying a well-structured operational framework, the trio of founders each assumes distinct yet complementary roles within the company.
Manuel’s creative prowess serves as the driving force behind the development of captivating narratives, while Geiszel’s adept oversight of operational facets ensures streamlined and efficient business management. Teunis, at the helm of the animation division, spearheads the company’s foray into visually compelling storytelling, thereby amplifying their presence within the competitive landscape of the entertainment industry. The strategic alliances forged with diverse distribution channels further fortify their market reach, positioning Black Sands Entertainment as a formidable player within the dynamic realm of entertainment, poised for sustained growth and continued success.
The Negotiations:
During the negotiation, the founders initially sought $500,000 in exchange for a 5% stake in the company. However, the Sharks, particularly Mark Cuban and Kevin Hart, expressed keen interest in the potential of the company, proposing a significant 30% ownership share in return for the requested investment. Their proposition was grounded in their extensive industry expertise and the added value they could bring to the table in terms of distribution, production, and leveraging the company’s intellectual property.
The negotiation spotlighted the crucial role of accessing a broader network and resources, with the Sharks emphasizing their instrumental role in propelling the company to new heights of success within the entertainment industry. Mark Cuban’s emphasis on integrating Black Sands Entertainment into his existing ecosystem underscored the mutual benefits of a collaborative partnership, with a clear focus on leveraging the company’s intellectual property for future growth and profitability.
The intricate negotiation process illuminated the significance of aligning visions and resources, with the founders recognizing the Sharks’ indispensable role in catapulting their company to the next level. Eventually, after a series of back-and-forth discussions, the founders agreed to the terms proposed by Mark Cuban and Kevin Hart, acknowledging their substantial contributions to the company’s future endeavors. The negotiation culminated in a celebratory agreement, solidifying the partnership and paving the way for the realization of their shared vision for Black Sands Entertainment’s expansion into the global entertainment landscape.
