The Journal. - Could Paris Hilton Create the 'Next Disney?'

Episode Date: May 23, 2024

Paris Hilton and her husband, VC investor Carter Reum, talk about "strict" parenting, the importance of A.I. and the huge economic value of her spoiled airhead persona. Ryan Knutson sat down with the couple at The Wall Street Journal’s Future of Everything Festival.  To watch the video, check out the episode on Spotify. Further Reading: -Paris Hilton’s Business Empire Is Getting a Makeover Further Listening: -The Business of Dua Lipa Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, it's Ryan. Earlier this week, I spoke live on stage with Paris Hilton and her husband, the VC investor Carter Rehm, at the Wall Street Journal's Future of Everything conference. It was a super interesting conversation, which we're going to play for you on the show today. And if you listen on Spotify, you'll be able to see a video of the event. All right, here it is. Paris Hilton was a social media influencer before social media and influencer were words that anyone said together. She was a reality star before we knew that reality shows were even a thing.

And she's leveraged her brand into multiple businesses that have generated more than $4 billion in revenue over a decade. A significant part of her brand today is her husband, the venture capitalist Carter Rehm. His firm, M13, was an early investor in companies like FanDuel, Ring, and Lyft. Their partnership is obviously a personal one, but it's also in some ways a business partnership. They don't own a company together,

but they do have a reality show called Paris in Love. I feel like I'm so grateful to have been patient to find my one and only and you are my everything. The first season, which came out in 2021, chronicled their engagement and wedding. If so, say I do. I do. Yas, I do. Okay. There you go. 2021, chronicled their engagement and wedding. So how have the two of them influenced each other's businesses? Where are their businesses headed? And what are the boundaries between

reality show and real reality? Live at the Future of Everything Festival, welcome to a special recording of the Journal Podcast, our show about money, business, and power. I'm Ryan Knudsen. Paris Hilton, Carter Ream, welcome to the show. Thank you. Seth and Riley's Garage Hard Lemonade, a delicious classic with a vibrant taste of fresh lemons. The perfect balance of sweet and sour with a crisp, zesty edge.

Welcome to The Garage, the place of refreshing hard lemonade. Available at the LCBO. Must be legal drinking age. Please enjoy responsibly. Nice to see everybody here. Great turnout. Thank you so much for being here. Paris Hilton, Carter Ream, power couple. The first question that I want to ask is something that I know is on everybody's minds, which is who is the loudest snorer?

Wow. I don't snore. We'll call it a tie. One of the things that you've said is that you is it sort of one at an equal but you also thought it was a benefit that carter was not in the same industry as you do you think that how do you think that factors into your dynamic as a couple a power couple oh i love that carter is very behind the scenes and lets me shine and he's the first person that I've been with that doesn't want to be famous. He doesn't like walking red carpets. He's...

I don't know. We were talking in the green room. I think he's got a lot of personality. He has a lot of personality, but he is just such a kind and genuine person. And I love that he loves me for me and doesn't care about any of the other things like that. I wouldn't go as far as to say that my wife and I are a power couple, but we are about to celebrate our 10-year wedding anniversary this year. Congratulations. And one of the things that we do is we designate domains that each person is the CEO of. So she's the CEO of planning. I'm the CEO of the dishes. Do you guys separate responsibilities like that? I don't think so. I mean, I think one of the reasons why Paris and I work, and I think it's,

you know, I always talk about it with great founding teams. I've been lucky enough to be one of the earliest investors in 13 unicorns. And people always ask me, like, did you know that that company was going to be, you know, such a big company? And when you look back, one of the things you always find is two co-founders or co-founders that are not the same person, but they play off each other's strengths, right? So, you know, you said I have a lot of personality. Believe it or not, the reason why that works for Paris and I is she's really shy, right? You can hear it in her voice right now. She's still a little shy. And then I've got a lot of personality.

Well, we both do dishes right and by the way I don't like this right now you're giving her ideas like I'm gonna be the CEO of the dishes this is not what I signed up for when we came today I'm the CEO of cooking so you're the CEO of cooking so that means I'm the CEO of plating or cleaning up? Eating. Exactly. Let's talk about your businesses. And I want to start by talking about Paris, your business, 11-11. But because you're married and you know everything about each other,

I'm going to ask the other partner to describe what the other person does. So I'm going to start with 11-11. Carter, I want you to go first. Can you describe Paris's business and what would you say her job is? That's a good question. I would say 11.11 is trying to define pop culture. They do it at the kind of intersection of content, community, and commerce. It's a billion dollar plus company and

I might be biased but I think she's creating the next Disney. The next Disney. Next Disney, I just wanted to make sure the microphone was on. Yeah, I think she's creating the next Disney. The next Disney. Next Disney, Ryan. I just wanted to make sure the microphone was on. Yeah, I think she's creating the next Disney. I mean, really, it's pretty obvious, right? If you think about it, Disney has a flywheel. Originally, it was built around Mickey Mouse, right? They have movies and then they sell... Are you comparing Paris Hilton to Mickey Mouse? Both iconic IP. Are you going to be wearing Mickey Mouse? Is that going to be a new product line? Yeah. She's way more beautiful and probably a lot smarter than Mickey Mouse. But if you think about it, Dizzy was built around a global IP, which is Mickey Mouse.

Right? Paris is global IP. And then once you've built that machine, you can run other IP through it. You know, Paris just launched a new animated series called Paris and Pups yesterday. So, yeah. I don't know what you guys think, but I think it's the next Dizzy. And female founded and led. Thank you. Paris, why don't know what you guys think, but I think it's the next Izzy and female founded and led. Thank you.

Paris, why don't you decide to start? Yeah, thank you. All right. Tell me about why you decided to start 11.11. What was the sort of state of all your various business units before and what are they under 11.11? How is it different?

I basically just wanted to take all of my businesses to the next level and put them all under one umbrella because with my businesses, I am doing so many different business verticals from television to film, audio, building products, podcasting, the metaverse, the web three projects we're doing, as well as everything in social and basically I do it all and I wanted just to have an entire team that was dedicated to that and to all of my businesses and it's just been incredible what we've accomplished in the past three years and it's very exciting. Speaking of all of your businesses which is the most lucrative?

He's getting personal isn't he? He's getting personal, isn't he? It's got to be podcasting, right? Yeah. I mean, your products have done $4 billion in revenue the last decade, so we'll go with products. It seems like you had stepped back from reality TV for a while. In 2020, you had talked about how you weren't sure if you wanted to have more of your private life out there. But in the last couple of years, you've stepped back into it in a big way with Paris in Love. You're bringing back The Simple Life. There's The Cooking Show. Why the pivot? Why return to this format? That's just where I started out with The Simple Life and being the OG

of reality TV. And I was focused on building my empire and my businesses, and that wasn't really a focus for me. And then after I did my documentary, This Is Paris, I felt that it didn't end in the way that how my life is now, so that's why I decided to do Paris and Love on Peacock and show my love, my wedding, and everything else. And now season two shows me stepping into motherhood and running my businesses and everything I do. So, and then with The Simple Life, obviously, it's such an iconic show. And it's a 20-year

anniversary. Nicole and I have been best friends since we're two years old. So we really wanted to do a reunion show to celebrate our friendship. Compared to the economics of the retail lines, how does, how do the reality shows compare? It's a good question. Yeah, not billions. But I love it because on all these shows, I can also showcase all of my different product lines, my business ventures, everything that I'm doing. I also showcase all of my different product lines, my business ventures, everything that I'm doing. So it all really works well together. Right. I imagine that also just like part of your economic value is your brand. And if your brand is out there more and more TV shows, it gives power to the whole flywheel.

How many people watch This Is Paris? 80 million? That's a lot of people around the world. That's your documentary that came out in 2020. Yes. You've also changed your persona a bit. You've let more of your real self out there. Talk me through that transition. Did you do that strategically?

How did you think about approaching that, like putting more of your real self out there and abandoning a bit the character that you have talked about sort of personifying in the 2000s? The character I built was almost a trauma response to what I went to when I was a teenager, what I went through. And I just created this character almost like a protective shell. And then all of a sudden to get offered The Simple Life, and this was the first of its kind, so I didn't really know what I was getting myself into. And the producers said, we want you to play, you know, the dumb, rich, spoiled airhead. So I played that character. I

had no idea that I would have to continue that on for five seasons. And then, you know, going around the world, doing all the talk shows and interviews and then continuing with the character because that's what everyone knew me for. And I'm also a very shy person. So that was also another reason that I did it. And then with my documentary, that was the first time that I was really real and vulnerable and told people my story, what I'd went through. And yeah, the character comes in and out sometimes. I think it's the more playful, fun side of me. And then I have my serious side as well.

Does the character still have economic value? Yes, lots. I noticed that in your cooking show, that was a little bit of the premise, like Airhead learns to cook. But were you playing that a bit or are you actually a really sophisticated chef? Well, not like a sophisticated chef. I am a good cook. I like to have fun in the kitchen.

And when I'm doing shows like that, it's all about entertainment. So if you're just being serious, I don't think it's as fun as being playful with it, kind of like how Lucille Ball was in the kitchen. Do you feel like you have to make a decision about when to use that character and when not to? Do you get asked to use that character in certain situations and you choose not to? And in which cases do you turn it down? Yeah, it depends on, you know, what the situation is. When I'm in Washington, D.C., fighting for federal legislation for my bill that we're about to pass. I'm obviously not going to be that character. But then if I'm doing a fun activation with Taco Bell or a fun brand like that, I will play into it. It just depends on the situation. So let's now talk about your business, Carter, M13. I made Carter do this about your business,

so Paris, now it's your turn. Can you describe what M13 is and what Carter's job is? Yes. M13 is the best investment firm in the world. All right, we'll take it. All right. The slogan. Carter is, you are the most brilliant and hardworking man I've ever met in my life. And I'm so inspired by you every single day. And he just, he knows how to spot the unicorns. He just knows. I've learned so much about infesting.

You are kind of a unicorn. I've picked 13 unicorns. Exactly. It's kind of our common ground. I changed the name to M14. This is the 14th unicorn. Yeah, exactly. She's a 101 our common ground. To change the name to M14, this is the 14th unicorn. Yeah, exactly. She's a 101 though, so we'll keep it M13. In what ways, Carter, does Paris influence your business? I mean, she obviously makes me incredibly good at what I do.

I mean, when you think about someone that has a billion dollar plus media company that understands commerce and content. I mean, she's, I'll come up to the bedroom and she'll be playing with her generative AI model. She literally has trained a model on her cookware line and she develops products for Walmart with it. And so, you know, I get a lot of great founders who say, hey, you know, I'm doing something around, you know, social media or content or commerce. But I don't think there's anyone that I could learn from more when it comes to understanding those worlds. And so, you know, it's obviously incredibly valuable. On the subject of AI, Paris, what are your thoughts on this technology? Are you excited about it? Are there elements to it that make you nervous? I'm excited about it. I'm,

just like you said, I've always been an undercover nerd, so I've just been obsessed with technology. And I love with AI that you can just think of an idea and have it just be created right in front of your eyes in seconds. And I think that is an amazing tool for other people to learn where they shouldn't be afraid of it. They should embrace it and learn it because it could just make the workflow happen so much faster, ideation come to life so much faster. And it's just fascinating just seeing everything that's happening. And I've been getting myself mapped and we've created, before I used to travel for over 250 days out of the year for two decades. And now being a mom, I definitely do not want to fly around like that anymore. So I love how I could really create different AI models,

holograms where my AI could be entertaining people around the world while I'm at home with my babies. So there's an AI Paris Hilton that you have deployed out there in the world. She's not out there yet, but we are just putting everything together right now. How, I mean, that's fascinating. How, what, who gets final say over what AI Paris Hilton says and does? Me. So then does that actually cut down on any of your work if you are like approving

everything that, that she says? Well, you have kids, right? You only have to tell the AI model what to say once. With children, you have to do it over and over and over again. For years and years and years. I mean, to give you an example, Paris, the other day, she was using a platform called Pietra, and she had an idea for a ski jacket. And literally using AI, she could go on, design that ski jacket, and literally matched her with a factory. And what did you have? A sample in two days? I mean, right, that might have taken six months in the past. It's fascinating. What do you think about AI photography?

Because now I imagine you can punch into any number of AI tools and get a photo of yourself doing whatever. Like, was that something that you think you would use, like on social media? Definitely. I think it's, you know, I've taken billions of photos, but to be able to do that and just create being in any place wearing any certain type of product is really exciting. How would you communicate that to your fans or would you communicate that to your fans that

this is not an actual image that was taken? It's something that was generated by artificial intelligence. Yeah, I think my fans always love that I've been someone who's always been future thinking and that I've introduced them to a lot of different technologies that they didn't even know about. So I think that's something that my fans look to me for is seeing what's happening in that world and seeing what's going on. So of course, I would always be honest with everything that I do. And I think showing that as well as just showing as part of the business, just how we can work faster with things. After the break, more from our interview with Paris and Carter.

We'll see you next time. or a consultant. You can get customized coverage for your business. Contact a licensed TD Insurance advisor to learn more. Listen closely as a master painter carefully brushes Benjamin Moore Regal Select down the seam of the wall. It's like poetry in motion. Benjamin Moore, see the wall. It's like poetry in motion. Benjamin Moore, See the Love. I want to ask you, Carter, about how your life has changed

ever since meeting Paris. Obviously, it's changed in enormous ways. You're married, you have two kids, but you are also now in the spotlight in a way that you never were before. You're now a character

on the Paris and Love reality show. People recognize you, sometimes, maybe. But tell me about the idea to go on this show. How did you feel when you heard about

this as an opportunity? Yeah. It's a docuseries. It's a dou-series. It's a docu-series. I had to beg him. As she could attest, I would like nothing more to be behind my laptop and my big screen, right? But my wife is a media

personality, so you do things for your wife to support her. Sounds like dishes. I every once in a while pop in and do something with Paris but you know again I probably spend a few hours 10 hours a season popping in and doing stuff but at the end of the day yes when I'm going through the airport I can tell someone knows I'm Paris Hilton's husband because they're typing into their phone and they're looking up at me and they've definitely Googled Paris Hilton's husband.

Has it affected M13 at all? I mean, does it have sort of a higher profile now as a result of this? Thankfully not because of the docu-series, but I think, yeah, in general, like, you know, again, I was very good at my craft before Paris and I started dating and are now married, but yeah, it's helped M13 a ton, right? A ton of founders will come to me and say,

I would love to get this in front of your wife. Again, I have knowledge about sectors that I was less familiar with because of her. I'm sitting here next to you, Ryan, today. And who knows, maybe it wouldn't have been possible if it weren't for her. Probably not. I'm just kidding.

Well, geez, that's mean. Unbelievable. I was kind of being funny about it. At least, you know, this is why I like to stay behind this stage normally. I want to talk about parenting a bit. I have a kid.

You guys have two kids around the same age. So sleep is obviously a big issue. But I want to talk. First, you launched this new franchise yesterday, I think. Tell us about that. It has to do with children's programming. Yes, the new franchise is called Paris and Pups. And it's about me and my little Hilton pets.

And it's an animated series which we are going to develop into TV series as well as products. I'm actually flying to Vegas right after for the expo for it. And I just thought it was the next step was to get more involved in the mommy space and children's space now that I'm a mom. Do you see it more as a business opportunity or just something that you have a personal interest in now that you're a mom? Both. I love it because I love animals. I love cartoons. I'm such a kid at heart as it is. And it's something I've always wanted to do. And I just felt that I wanted to also have something else for my kids to watch because I am now just being a mom doing all this research and learning that all these cartoons are really bad for the development of little children.

So I want to definitely have that in mind when we are doing this. Interesting. So you're going to try to make programming that's like a little bit less stimulating? Yeah, what were you saying? You're going to have an education consultant on it? Yeah, I think I'm going to have like an education consultant on top of it as well, just so that I can develop cartoons for children to watch and have their minds expand more. How do you think about technology and kids? I mean, do you think, have you thought, I mean,

I know we were a long ways off from this, but have you thought about when you'll give them a smartphone, when you'll give them, or if you'll give them social media accounts? No. I hope that they are nerds like their dad and don't want anything to do with that. So I'm going to try to not have them have a phone for a while because I think it's just some of these kids are just getting phones at way too young of an age. And there's just so many things online that I wouldn't even want my children to be exposed to. So I'm going to I never thought I would say this, but I'm going to be the strict mom. So I'm going to, I never thought I would say this, but I'm going to be the strict mom. By the way, Ryan, I think it's so cute.

You think it's just going to be social media when our kids are, you know, 15 years from now. They'll hologram in their friends. They'll be, you know, broadcast into a gaming environment. If it gets them into the same room, I guess that would be good at least, you know. Have you thought, like, how have you guys thought about including your kids in your businesses? Paris, you know, it's funny, like, we talked about it a lot when Phoenix and London were born. I think Paris's natural inclination, because she's always shared her life with the public, is to share that life and people like it so much. I think we're going to have to think a lot about it as the kids get older and what do we want and what is in the best interest of the kids and their safety. But I know in the short term, I'm going to guess they're going to be really cute baby

and infant models when you launch kids clothing. Yes. So Paris, when you think about the future, what are the trends that you are interested in or most excited about? Are there new things? Are they sort of the same things we've been seeing the past few years? I'm really excited about digital wearables. I am obsessed with the new Meadow Ray-Ban smart sunglasses. I've just been wearing them the past couple weeks, and I love that they're hands-free, and you can just capture just all the memories, and it's just, it's so different than, you know,

taking out your film and filming. So it's just like getting these really amazing home videos with the kids and being together on Easter in St. Barts and the water, and just, I love, I love anything where you can really merge together technology and fashion. Mm-hmm. Where do you see your business in 10 years?

Tell them the next Disney, Paris. Yes, next Disney. And who knows, maybe a Paris Hilton theme park. Maybe we should start with hotels, but we don't want to talk about that. Oh, yeah, hotels too, obviously. That's something that I'm really excited about because I've always wanted to follow into my family's footsteps and create my own hotels.

So that's something that we are working on as well. Thinking of that? Yeah. Exactly. And, yeah, just continuing to grow everything with all of the IP and all of the different television that we're doing. A24 just bought the rights to my memoir, so I will be creating a television series with them,

which will be out next year, which I'm really excited for. How much editorial control will you have over that? All. All. If people want to work with me, then that's how it goes. I like that. Is that difficult though sometimes or is it just like, no? No, because people want to work with me so they'll understand the terms. Same question to you, Carter. Where do you see your business in 10 years? Yeah, I think,

you know, we have a very unique venture firm in M13 is that everyone's an operator by background and we invest in great founders. But then we have three times as many full-time operators for every investor to help these companies because, you know, the stat in tech is you or I have a greater likelihood to be an NBA basketball player than to found a billion dollar plus company, right? So it's hard. You know, if you had asked me five years ago, where do I see the future? I'm not sure I would have known. I think our goal is just to build a great, great venture capital firm, back great founders and, you know, leave the world a little better than we found it. Great. Paris, Carter, this was the world a little better than we found it.

Great. Paris, Carter, this was excellent. Thank you so much for joining us. Thank you. Thank you, everyone. That's all for today, Thursday, May 23rd. The Journal is a co-production of Spotify and The Wall Street Journal. If you want to see more interviews from the Future of Everything Festival, like with the actress Awkwafina or FTC chair Lena Kahn, subscribers can find them at wsj.com slash future24.

That's wsj.com slash future24. Thanks for listening. See you tomorrow.