Additional Coverage:
- ‘Shark Tank’ judge Barbara Corcoran dumps Mark Cuban shortly after making a joint offer with him (marketrealist.com)
Barbara Corcoran Sidelines Mark Cuban in “Shark Tank” Deal for Black Paper Party
In a dramatic turn characteristic of the competitive “Shark Tank” environment, investor Barbara Corcoran strategically removed fellow “Shark” Mark Cuban from a joint offer to secure a deal with entrepreneurs Madia Willis, Jasmine Hudson, and J’Aaron Merchant, founders of Black Paper Party. The episode showcased how quickly alliances can shift when a promising venture is on the line.
The three Black women behind Black Paper Party entered the Tank seeking $250,000 for a 5% stake in their company. Their business specializes in Christmas decorations that uniquely champion Black representation, offering items designed to reflect Black families and celebrate their history and culture. While the products themselves are common holiday decor, their distinctive designs and underlying message set them apart.
The Sharks were impressed not only by the entrepreneurs and their mission but also by the company’s strong financial performance. At the time of filming, Black Paper Party had already secured agreements with major retailers including Target, Walmart, and Macy’s.
Their products were slated to be sold in an astounding 6,000 outlets during the upcoming Christmas season. The business also boasted diverse revenue streams through licensing and wholesale, making it an attractive prospect.
Projecting $1.1 million in sales for the year, the company demonstrated healthy profits, allowing the founders to draw salaries while maintaining a six-figure sum in the business.
Despite the impressive figures, not all Sharks were convinced. Kevin O’Leary expressed reservations about the company’s distribution network, leading him to decline an offer.
Lori Greiner also bowed out, citing her preference against investing in seasonal products. Daymond John was considering an offer but was interrupted as Corcoran made her move.
Corcoran initially proposed $250,000 for a 15% stake, an offer Lori Greiner praised as strong, given Corcoran’s own success with seasonal ventures. Corcoran then extended an invitation to Mark Cuban, forming a joint offer of $250,000 for a 20% stake. The entrepreneurs countered with a request for $450,000 for 18%, which was quickly dismissed.
However, the entrepreneurs then pivoted, directly asking Corcoran if she would consider a solo deal of $250,000 for a 10% stake. Without hesitation, Corcoran famously responded, “And leave my poor guy Mark out?
Of course I will!” sealing the deal and securing Black Paper Party as her newest investment, leaving Cuban on the sidelines.