Ten Thirty One Productions
DEAL
EPISODE SUMMARY
🕓 Air Date: October 25, 2013
Asking For:
$2,000,000 for 10%
Investor:
Mark Cuban
Deal:
$2,000,000 for 20%
PRODUCT SUMMARY
Ten Thirty One Productions creates, owns, and produces live attractions in the horror space, notably the Los Angeles Haunted Hayride, offering immersive and terrifying experiences.
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Background Story
Ten Thirty One Productions, based in Los Angeles, California, is the brainchild of Melissa Carbone, an entrepreneur with a passion for horror entertainment. Carbone’s background in event production, particularly her tenure running Clear Channel Los Angeles for a decade, provided her with invaluable experience in marketing and organizing large-scale events. Inspired by the popularity of horror-themed attractions and the desire to offer unique experiences to audiences, Carbone founded Ten Thirty One Productions with the vision of creating immersive and terrifying entertainment.
The idea for the company stemmed from Carbone’s observation of the growing demand for experiential entertainment that goes beyond traditional forms of amusement. Drawing from her expertise in event planning and her love for horror, she conceptualized attractions that would plunge participants into a world of suspense, fear, and excitement. The flagship product, the Los Angeles Haunted Hayride, epitomizes this vision, taking thrill-seekers on a chilling journey through dark woods filled with menacing creatures and spine-tingling surprises.
Recognizing the potential to expand beyond seasonal attractions, Carbone launched the Great Horror Campout, offering an overnight camping experience with a horror twist. Her goal is to redefine entertainment by providing immersive experiences that resonate with audiences and keep them coming back for more. With a keen understanding of marketing and a knack for creating unforgettable experiences, Carbone has positioned Ten Thirty One Productions as a leader in the experiential entertainment industry, captivating audiences and investors alike with her innovative approach to horror-themed attractions.
The Product
Ten Thirty One Productions offers a range of immersive horror-themed attractions designed to terrify and thrill audiences. The flagship product, the Los Angeles Haunted Hayride, invites participants to embark on a spine-chilling journey through pitch-black woods teeming with demonic forces, lost souls, and psychopathic fun. Guests experience a variety of scare tactics, including unexpected encounters, startling noises, and eerie visuals, all carefully crafted to elicit fear and excitement.
Additionally, the company provides the Great Horror Campout, an overnight camping experience where campers are immersed in a world of horror-themed activities and interactions. From hell hunts to interactive challenges, participants are fully engaged in the experience, creating memories that last a lifetime.
Tickets for Ten Thirty One Productions’ attractions can be purchased online through their website or at the venue. Prices vary depending on the attraction and package chosen, with options for individual tickets, group rates, and VIP experiences. The company prioritizes customer satisfaction, ensuring that every attendee enjoys a safe yet exhilarating experience. With a commitment to innovation and excellence, Ten Thirty One Productions continues to push the boundaries of experiential entertainment, captivating audiences and leaving them eagerly anticipating their next terrifying adventure.
How It Went
The company’s position before Shark Tank
Ten Thirty One Productions has demonstrated robust performance in the experiential entertainment industry, particularly with its flagship attractions like the Los Angeles Haunted Hayride and the Great Horror Campout. With consistent sell-out nights and revenues of approximately $1.8 million generated over a 17-night period, the company has established itself as a leader in providing immersive horror experiences. Their success is further evidenced by the expansion plans, including launching new attractions in various cities along the West Coast. The company’s partners include major entertainment companies that have shown interest in acquiring Ten Thirty One Productions, indicating external validation of their business model and potential.
Ten Thirty One Productions’ customer base comprises horror enthusiasts, thrill-seekers, and individuals seeking unique and memorable experiences. Their target demographic spans a wide range of ages, with a common interest in horror and immersive entertainment. In terms of funding, the company sought $2 million in exchange for equity during their appearance on Shark Tank. While they secured a deal with Mark Cuban, the specifics of their funding sources beyond this deal are not provided. However, it’s reasonable to assume that they may also rely on revenue from ticket sales, sponsorships, and potentially other investors.
As for profits and losses, while the company’s revenue stream appears healthy, they also face significant production costs, such as venue rental, staffing, and marketing expenses. Despite these costs, Ten Thirty One Productions has managed to maintain profitability, as evidenced by their ability to continue operations and expand their offerings. The company’s current structure likely includes key personnel responsible for operations, marketing, finance, and creative direction. With Melissa Carbone at the helm, the company’s leadership and strategic vision drive its success in the experiential entertainment market.
The Negotiations:
In the negotiation process on Shark Tank, Melissa Carbone of Ten Thirty One Productions initially sought $2 million in exchange for 10% of her company. However, the Sharks expressed skepticism about the valuation, particularly given the company’s projected earnings. Despite concerns, Mark Cuban made an offer of $2 million for 20% equity, doubling Carbone’s initial ask. This offer was accepted, as Carbone saw Cuban’s expertise and the potential for growth with his involvement as valuable assets to her company.
The negotiation saw other Sharks, like Kevin O’Leary, express doubts about the valuation and the likelihood of returns. O’Leary emphasized the disparity between the company’s asking price and its potential earnings, suggesting that the valuation was inflated. Barbara Corcoran also questioned the scalability and profitability of the business model, leading her to bow out of the deal.
Ultimately, Carbone’s confidence in her company’s potential, combined with Cuban’s strategic investment offer, sealed the deal. While the negotiation highlighted the challenges of valuing a business in the entertainment industry, Carbone’s willingness to adapt and the Sharks’ recognition of her company’s success led to a mutually beneficial agreement. With Cuban’s support, Ten Thirty One Productions aims to capitalize on its momentum and continue to innovate in the experiential entertainment market.
