'Shark Tank' fans warn Woosh against Kevin O'Leary's 'ridiculous' $500K perpetual royalty deal: 'Don't do it'
LOS ANGELES, CALIFORNIA: Woosh founder Winston Mok was ready to knock the air out of the Sharks on 'Shark Tank' with his innovative pitch for smart air purifiers. Thouh his company was still in pre-sales stage, Winston was confident about the success of his product, thanks to the patent-pending design and also licensing interest from big name air purifier brands. The entrepreneur walked in seeking $500K for a 10% stake in his brand with $5 Million valuation.
While Mark Cuban, Robert Herjavec, Lori Greiner, and Daymond John decided to sit out on the deal citing reasons ranging from there being no need for the product to lack of knowledge about the air purifier sector, only Mr Wonderful aka Kevin O'Leary was left on the table. Kevin took full advantage of the situation and decided to roll out his infamous "royalty" offer. He agreed to invest the $500K but wanted a 12.5% stake instead of the 10% that Winston was offering, and also added the royalty clause by demanding a royalty of 50 cents for every unit sold in perpetuity. As soon as the other Sharks heard Kevin's deal, they began warning Winston against taking it by pointing out how he would be out of business trying to pay Kevin the money.
Kevin was further triggered on hearing the other Sharks talk down about his offer, and decided to revise his offer by demanding for a 15% stake instead. Despite the other sharks' warning, Winston seemed keen on taking up Kevin's offer but the perpetual royalty was putting him off. He explained how his startup would be in a financial crunch if he goes down the perpetual royalty deal road. But Kevin was in no mood to hear any explanations and simply asked Winston to either take the deal or walk out of the tank empty-handed.
As a last ditch effort, Kevin tried negotiating with Kevin about bringing down the equity to 10%, and in exchange he would accept the perpetual royalty. Kevin immediately accepted the Woosh founder's offer and closed the deal. While Winston was happy about bagging a deal with Kevin, fans however were unhappy. Many 'Shark Tank' fans sided with the other Sharks in pointing out how Kevin's perpetual royalty offer was "ridiculous."
A fan tweeted, "Winston don't take Kevin's deal. #Sharktank." "It's still on commercial break, but I'm hoping Winston let's Kevin #Woosh away from him with his terrible offer. #SharkTank," wrote a fan. "Don't do it, Winston! Let @kevinolearytv #Woosh on out of your life! That royalty is ridiculous! #SharkTank," echoed a fan. "#SharkTank No waaay Kevin! $.50 royalty forever? I forget to change my filters & it doesn’t dawn on me until my heat or cooling doesn’t work. A smart unit w/this indicator is a good idea! Now Kevin has increased his %. Say no!" suggested a fan.
#SharkTank No waaay Kevin! $.50 royalty forever? I forget to change my filters & it doesn’t dawn on me until my heat or cooling doesn’t work. A smart unit w/this indicator is a good idea! Now Kevin has increased his %. Say no!— Maureen 'mo' Amos (@ldydemon) October 15, 2022
'Shark Tank' Season 14 airs every Friday at 8/7c on ABC.
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