Kevin Hart Signs $100 Million Investment Agreement To Create HARTBEAT, Which Will Be Led By An All Black Leadership Team
I am a Forbes contributor for For(bes) The Culture.
Apr 27, 2022,08:00am EDT
Kevin Hart, trailblazing entrepreneur, executive, and entertainer, has now combined Laugh Out Loud and HartBeat Productions to create one of the leading sources of comedic storytelling and experiences with HARTBEAT, after more than a decade of leveraging his individual success to build the two high-growth companies.
With the mission of keeping the world laughing together, the multi-platform company creates entertainment at the intersection of comedy and culture. Hartbeat Productions’ best-in-class television and film production capabilities are combined with Laugh Out Loud’s extensive distribution network, as well as marketing, sales, experiential, branded content, digital, and social capabilities.
HARTBEAT was established with a $100 million investment from Abry Partners, a private equity firm that took a minority stake in the new company. Evolution Media Capital and a team from Manatt, Phelps & Phillips, LLP led by Sophia Yen, a partner in the Entertainment Group, advised HARTBEAT on the deal.
The creation of HARTBEAT and the capital raised with Abry Partners mark the beginning of a new era in comedy. Hart is proud of what has been delivered. As part of the agreement, Nicolas Massard, a partner at Abry Partners, will join the HARTBEAT board as part of the agreement. Peacock, NBCUniversal’s streaming service, will remain a shareholder in Laugh Out Loud after signing a multi-year, first look deal and taking an equity stake in the network in 2020.
Hart discusses his commitment to building the most innovative and inclusive comedy storytelling company. “In an industry where people love to say no and shut doors, I’ve been confident in forging our own path and using our success to open doors for others. We’re taking the new entertainment blueprint we’ve built to the next level with this merger and funding, paving the way for a new generation of comedic talent. I can’t wait to bring more comedians, experiences, and heartfelt stories to the world.”
HARTBEAT intends to use the funds to expand its team, accelerate growth for existing brands and franchises, and develop a new IP that will appeal to a global audience. This will be accomplished by collaborating with today’s most influential stars and rising comedic talent, both in front of and behind the camera, using HARTBEAT’s creative engine, relationships, and resources.
The existing leadership from Hartbeat Productions and Laugh Out Loud will continue to oversee day-to-day operations. Thai Randolph, who previously served as President & COO of Laugh Out Loud and COO of Hartbeat Productions, has been appointed CEO of the new entity. Hart will serve as Chairman in the interim. Bryan Smiley of Hartbeat Productions will become President & Chief Content Officer, and Jeff Clanagan of LOL will become President & Chief Distribution Officer. Leland Wigington, co-founder of HartBeat Productions, will lead a new production banner under HARTBEAT.
Randolph spoke with For(bes) The Culture about the emergence of HARTBEAT.
“Commercially, it’s a milestone moment. In terms of the company’s capitalization and valuation, as well as the possibility of expanding the team to create more content. We are breathing rare air when it comes to scaling companies of this size, especially when it comes to having a company that is minority owned and run by people of color.” Randolph continues, “We don’t consider diversity to be an initiative because, the composition is more than half women and half people of color. We are diverse by design because it’s just good business. With the mission of keeping the world laughing together, we have a team that looks like the world around us, so we can program relevantly to those audiences.”
The LOL! Network was named one of the top 10 media publishers in an April 2021 Conviva report that ranked the size of social media audiences across Instagram, Facebook, Twitter, TikTok, and YouTube. It came in ahead of major players like Hulu. The merger and capital raise will allow HARTBEAT to expand and invest in the future of comedic entertainment, producing more in-demand content and experiences where comedy meets culture.
HARTBEAT is a full-service entertainment company that develops, markets, and distributes the most culturally relevant IP and experiences in comedy and beyond. The company is divided into three divisions:
- HARTBEAT Studios led by Bryan Smiley finances, develops, and produces comedy and culture-related film, television, and content.
- HARTBEAT Media, under the leadership of Jeff Clanagan, connects with consumers all over the world through events, gaming, music publishing, Web3 initiatives, and a vast distribution network.
- PULSE, the company’s branded entertainment studio, works with companies like P&G, Lyft, Sam’s Club, Chase, and Verizon to provide creative and cultural consulting.
Operating under HARTBEAT Media, the LOL! Network will continue to be the company’s flagship consumer brand, reaching audiences across its O&O social media, audio (SiriusXM) and OTT partners (Peacock, Roku, Tubi, PlutoTV, Vizio, Redbox, Xumo, and more).
With projects featuring Tiffany Haddish, Hasan Minhaj, Amanda Seales, Deon Cole, and Affion Crockett, HARTBEAT creates hit vehicles for A-list comedians and brings the next generation of comedic voices into the mainstream.
HARTBEAT is currently working on more than 60 projects with 15+ entertainment partners, all of which are in various stages of development. The company also has several multi-year strategic partnerships, including the unscripted first look deal with NBCU’s Peacock, a film deal with Netflix, a partnership with SiriusXM, and a deal with Audible via the joint venture SBH Productions with Charlamagne Tha God.
Among the upcoming projects include: Me Time (Netflix) with Mark Wahlberg and Regina Hall, “Storytown” (HBO Max), the F. Gary Gray action heist Lift (Netflix), #1 on the Call Sheet documentary (Apple TV+), “Die Hart” season 2 (Roku), “So Dumb It’s Criminal” with Snoop Dogg (Peacock), and a new season of the Hart-led sports talk show “Cold as Balls” (LOL Network).
Randolph exclaims that HARTBEAT isn’t on the hunt to figure out how to implement special programs, because the company is constantly making sure they are aware of blind spots and challenging themselves to make a difference in the market.
One of the things Randolph has learned from Hart is that it is their responsibility as Black leaders to pay it forward. “We want to be as open with the information as possible, and we want to keep the door open for as many more people to walk through as possible, in the hopes that deals like this will result in more teams that look like us becoming the norm rather than the exception.”
“I believe that going through this process and scaling with such a talented group provided us with a unique learning opportunity. Kevin is a big believer in giving creators and executives equal access to information and resources. We’re not trying to keep a secret playbook; we believe there’s room for everyone to win,” states Randolph.