The Philip DeFranco Show - MrBeast HUMILIATED Himself & Is Bleeding Millions

Starting point is 00:00:00 Mr. Bees just exposed and humiliated himself, but that may actually be the least of his worries after these new docs came out. The truth about the Taylor Swift-Tervis Kelsey situation and why we didn't cover it yesterday. Where there's Trump, FEMA situation is really terrifying. With information still coming in, the suspect in the Minneapolis shooting has been identified. We're talking about all of that and even more on today's brand new Philip DeFranco show you daily dive into the news, starting with this. Mr. Bees just got humiliated, though that might be the least of his problems right now. Because yesterday, he actually was the one humiliating himself because he crashed out over a small. creator getting ranked higher on the Rolling Stone's most influential creator list.

Starting point is 00:00:33 But then also as if that wasn't bad enough, it got revealed that his company is grossly unprofitable. Like somehow losing over a hundred million dollars a year unprofitable. But starting with Rolling Stone, the list that they have features a wide variety of influential creators that produce essentially every type of content you can imagine. But also obviously, with a title like most influential creators, it begs a question, well, what is the criteria? And according to them, for the list, we defined it as someone born from the internet. Not a celebrity who jumped on after gaining fame in a more traditional way,

Starting point is 00:00:58 who uses their chosen platforms to push conversations forward. So kind of if you think about it, a super vague definition, that gives them a lot of leeway. Which is then why you see a kind of a range of names like Dave Portnoy, Iron Mouse, Asan Piker, Miss Rachel, I Show Speed, and many, many others. And then with all that, you had Mr. Bees coming in at number seven, which you might think would prompt a tweet like, oh, that's cool. Or hell, even if it was negative, maybe how many views do I have to get to be number one? But instead, he decided to take aim at someone on the list above him.

Starting point is 00:01:24 Writing in a now-deleted tweet, according to this list, a guy with one, million followers is more influential than me. What did I do to piss off the Rolling Stones? Which one, I will say, I don't know if Mr. Beas thinks Rolling Stone magazine is actually the band the Rolling Stones. But either way, too, the guy with a million followers is Caleb Hero. And he actually responded to the tweet on Instagram in his own way with a post that showed the tweet and the caption saying, thank you Rolling Stone. It's been an honor. You know, this was such a dumb, petty tweet. My favorite thing wasn't even watching people like writing funny tweets and reacting to it. It was actually seeing some people realize in real time that this wasn't,

Starting point is 00:01:58 like a parody account, this was actually a real thing that he posted. Okay, dude, there's no way Mr. Bees posted that. That's so funny. No, Mr. Bees didn't actually post that, chatters. Calm down. It's, it's, it's, Caleb is, is making a joke. Wait, he did. Oh, my God, he actually did. Oh, my God, he did. Oh, my God. Are you real, dude? Why would you post that? You sound so bitter.

Starting point is 00:02:23 You're Mr. Feast. Why the f*** do you care about where you plan? ended on the Rolling Stone's influential list. I genuinely thought that he would have the wherewithal not to post him shit like that. You also had creators that have had a pass with Mr. Beast, like Rosanna Pancino writing things like, Mr. Beast's masks slipping this much and less than a year has been fascinating to watch.

Starting point is 00:02:43 Sorry, Jimmy, Caleb is something you'll never have, a personality. And that is there were just countless other popular tweets reading things like, Mr. Beast, I cannot respond directly because you blocked me, but I wanted you to know that Caleb is a comedian who makes many laugh, and you were some sort of Willy Wonka Marionette being puppeted by the algorithm. But also, hey, I'll say it wasn't all hate. But some, including creators like XQC, reacting to the list while reading it and saying... Aw, it's still in place.

Starting point is 00:03:05 Caleb Y, chat. If I'm a beast, I'm suing them. I'm going to sue shit up. Imagine being the guy that has the biggest analytics on the internet for the longest time in a row. I'm not trying to delay it, but guys, he's dominating the internet. To be beaten by Caleb, Iran, a guy that I've never seen in my entire life, appearing on a photo with Aiden, makes you lose five points on the top fucking top 10 is what it is. But either way there, you had Mr. Beast eventually deleting his tweet, and when replying to someone about the situation, wrote,

Starting point is 00:03:31 not going to lie, after this, I watched some of his stuff and it's actually good. I deleted the tweet, I don't want the smoke from the shooters. Spare me, please. But then, he also got blasted even more for not apologizing and instead, fearing the backlash. As far as Caleb, it appears that he's just taking the whole thing in stride and joked on his Instagram story, that he's in peace talks with Mr. Beast right now. And also, for his part, Jimmy's been trying to move on. And instead, he's been talking about how excited he is for Beast Game Season 2,

Starting point is 00:03:52 which just finished filming with its $5 million prize. Which actually brings us to the second, and I think far more interesting story with Mr. Beast, and that is, it's being reported that he's running out of money. And that's not just speculation. Instead, it's coming from a leaked investor deck from earlier this year that was reviewed by Business Insider. With the deck, reportedly revealing that in 2024, Beast Industries earned $224 million from YouTube and other media, which, you know, is a ton of money. But apparently, that was because the company spent $344 million.

Starting point is 00:04:18 So you're looking at a negative difference of $120 million a year, so that's usually a non-starter for most businesses, let alone a social media brand. With Jimmy, possibly realizing he's got a problem on his hands because in May of last year, he brought on Jeffrey Housenbold to help out the corporate side. With then, in September, Housenbold being upgraded to CEO, and Howson Bold does a long successful resume as the former CEO of Shutterfly and a venture capitalist that led SoftBanks $100 billion vision fund. And it appears he has tons of ideas for tackling the insane cause

Starting point is 00:04:43 that Mr. Bees has run up with his production, some of which seem obvious. Things like, for example, Mr. Beast apparently pays retail on like everything. So let's say it's like a video that features Jim equipment. Jimmy is apparently buying that for full value, Which for a creator of that size, doing a production that large, it's almost unheard of. The scene is any amount of branding in a Mr. B's video just being worth a ton for companies, and he should be working out deals for those items. And so in the case of Jim equipment, it'd probably be easy to get that stuff for free

Starting point is 00:05:04 or heavily discounted for just mentioning it in a video. And what's even crazier to learn is that Mr. B's reportedly didn't even have a fully dedicated brands team, like the people that would negotiate those deals. And so Housenbold's new eight-person brand team, they're trying to score these kind of items for free or even have Mr. B's paid to use them in videos. This company also appears to now be renegotiating advertiser rates by as much as 65% with Housenbold saying, we select partners that are authentic and will resonate with our loyal viewers, so we will never work with a cringe product. Sometimes, Jivie has a personal preference,

Starting point is 00:05:30 but we have a choice in who to work with, and the economics must pencil out too. But then even with all value of things, probably not turning around if Jimmy gets to continue spending crazy amounts per video, which appears to be why there is now a buzzkill squad that'll have to force budgets on videos and make sure they stick to those budgets. And so that means, you know, no more spending $29 million for just the sets of the first two episodes of a beast game season and losing tens of millions of dollars on the project. A mistake so massive that even Jimmy said, I'm an idiot. And reportedly, according to one-X staffer, these changes over the past few months have meant that it's getting more corporate, saying people were used to the

Starting point is 00:05:59 Wild West and now you can't run a company this size that way. Now, with all that said, I think it is hyperbolic to say that Mr. Beast is running out of money. Because when you look at it, it appears that the media side's really just the side that's bleeding money. Things like Feastables and other Mr. Beast products, they're actually very profitable for the company and account for about half the revenue. And so to a certain degree, you could argue that all the videos, they're essentially just big ads. Though that said, they obviously want that side to also be profitable and House & Bolt's confident that by this year, things will turn around. In fact, in that same leaked investor deck, it claim that the company is projected to make $317 million in media revenue and

Starting point is 00:06:31 spend just $292 million. But for now, we'll have to wait to see how it plays out. Though I'll say it really does feel like Mr. Beast is too big to fail. Obviously, those could be famous last words, but his weird, petty reaction to the Rolling Stone thing aside, there's really just never been anyone like Mr. Beast in our space, like his bad view videos are 62 million plus. Yeah, whether it be the rolling stone of it all or the business side, I love to know your thoughts and reactions to what we're seeing right now. And then I've got more news for you in just a minute. But first, let me say, I drink lots of water. Partly because I have PKD, polycystic kidney disease, but also because clean water, it impacts everyone's help.

Starting point is 00:07:05 Be it with my kidneys already working overtime, it's a top priority for me. After researching tons of water purifiers, I started using Cove Pure, today's sponsor and the only purifier I trust to do the job. And it's simple, the fewer toxins in your water, the less pressure on your body, especially your kidneys. And a lot of people just don't realize how much harm. harmful stuffs in the water, arsenic, lead, microplastics, even PFAs, aka Forever Chemicals. So yeah, clean water matters for everyone, kidney issues or not. Cove Pure is certified to remove up to 99.9% of harmful contaminants. Pitcher filters only remove 23% of arsenic. Bottled water is not much better.

Starting point is 00:07:34 One study found over 240,000 microplastic particles and a single liter of bottled water. And cove pure is installation free. I plug it in and it gives me hot or cold water instantly. That's perfect. Wow, that's better than my fridge filter. And I love that I can monitor my water quality in real time and it looks great in my kitchen or wherever I put it. Your body is 60% water and if it's not clean, you're neglecting the foundation that your body runs on. So hey, get complete peace of mind with the water purifier I trust. Scan that QR code or go to covepure.com slash DeFranco to get $200 off. And definitely hurry because that offer won't last. But then getting back into the news, news that started

Starting point is 00:08:06 breaking today as we were filming the rest of today's show is that there was a deadly shooting at the Annunciation Catholic School in Minneapolis, Minnesota. So we'll have more on this later, but the details so far as I'm recording, they're pretty sparse. But what we know is that The gunmen opened fire at the school's gathering for mass this morning, which was meant to mark the first week of school. According to Minneapolis Police Chief Brian O'Hara, at least two students were killed, and another 17 were injured with 14 of those being kids. The two children who are dead were reportedly 8 and 10 years old, and their parents have been notified. Also, as of recording, several of the other victims are in rough shape. Portly of the 11 victims that went to Hennepin Healthcare, 7 are in critical condition, with four of those requiring surgery.

Starting point is 00:08:41 Those kids range from ages 6 to 14. And the reason you're seeing that age range is Enunciation Catholic School serves pre-K, through eighth grade. And with that, you had Chief O'Hara saying, This was a deliberate act of violence against innocent children and other people worshipping. The sheer cruelty and cowardice of firing into a church full of children is absolutely incomprehensible. As for the gunman, Chief O'Hara confirmed that he was identified as 23-year-old Robin Westman, who took his own life at the scene. Westman reportedly had no criminal history and had recently purchased the shotgun rifle and pistol he had on him at the time of the shooting lawfully.

Starting point is 00:09:19 He also said that there was a manifesto from the shooter that appeared to be scheduled to go live on YouTube immediately following the shooting. With that, seemingly including footage of Westman at the scene. But that manifesto quickly being taken down by the FBI and investigators still saying they're working and identifying a precise motive. There was also a rumor that the shooter brought an explosive device, but that was quickly debunked by the chief who said that something like a smoke bomb was found, but no true explosive. We're saying it was more like a firework than anything else. As far as motive and more information, there is an investigation still ongoing. Otherwise, I'm recording this, there's more and more coming in, but we want to give it time to make sure what's true and what's being kind of more speculative. With all this, as far as the responses, we saw Minnesota Governor Tim Wall saying on X that he's been briefed on the situation and saying,

Starting point is 00:09:56 I'm praying for our kids and teachers who first week of school was marred by this horrific act of violence. Senator Amy Klobuchar saying I am heartbroken by the horrific violence at Annunciation Catholic School in Minneapolis this morning. Saying my prayers are with the students, teachers, and families, and I am grateful for the first responders who were on the scene. You also then had Minneapolis Mayor Jacob Fry not playing with a thoughts and prayers conversation saying, don't just say this is about thoughts and prayers right now. These kids were literally praying. It was the first week of school. They were in a church.

Starting point is 00:10:22 And all of this is we know that Donald Trump has been briefed on the shooting with the White House saying they're monitoring updates. But obviously, as we wait for more information to come out and get confirmed, our hearts go out to these kids, their families, and all the staff, and just everyone that's having to go through this horrific tragedy. But then shifting gears from that very heavy news, we should also talk about another thing that you should probably be worried about, though, in a very different space. FEMA employees are now being placed on administrative leave after warning that Trump's overhaul of the agency could lead to another Hurricane Katrina.

Starting point is 00:10:48 Which is saying something because a little reminder because it's been a minute. It was the costliest disaster in U.S. history and one of the deadliest. We're talking 1,833 deaths and 161 billion dollars in property damage. And it was a slow federal response that we saw there that led to the passage

Starting point is 00:11:01 of the post-Katrina emergency management reform act. A law that on Monday, nearly 200 current and former FEMA employees accused the Trump administration of just ignoring. Or they signed a letter called the Katrina Declaration, and they wrote. Our shared commitment to our country, our oaths of office, and our mission of helping people before, during, and after disasters compel us to warn Congress and the American people of the cascading effects of decisions made by the current administration. And then they added that they hope that their warnings would come in time to prevent not only another national catastrophe like Hurricane Katrina, but also the effective dissolution of FEMA itself and the abandonment of the American people such an event would represent. Right. And a big thing to hone in on here is that the employees highlighted specific provisions from the act that they say that the Trump administration is failing to follow. Things like a requirement that FEMA administrators have demonstrated ability in and knowledge of emergency management, which yeah, seems like a plus.

Starting point is 00:11:45 And then another being that the Homeland Security Secretary may not substantially or significantly reduce the authorities, responsibilities, or functions of the agency. It brings us to the guy that's in charge. David Richardson, who you might remember as the guy who told the employees back in June that he didn't know that the U.S. had a hurricane season. And then as far as interference from the Homeland Security Secretary, we've got things like Christine Nome imposing new spending rules that have delayed hundreds of FEMA contracts and seemingly even impacted the agency's response to the flooding in Texas back

Starting point is 00:12:10 in July. And all that is, you remember that the administration has also cut billions of dollars in FEMA grants intended to help communities deal with disasters. Trump even said in June that he wanted to eliminate FEMA after the end of the hurricane season and move emergency management efforts back to the state level. With that take, then, probably making it not that big of a surprise that the acting FEMA press secretary claim that the administration's just working to reduce red tape, inefficiency, and outgated processes across the agency and adding, it is not surprising that some of the same bureaucrats who presided over decades of inefficiency are now objecting to reform. And then with all that, a now unknown number of the nearly 200 people who signed that letter have been put on administrative

Starting point is 00:12:42 leave, which also appears to be something they saw coming. I mean, about 150 female employees who signed the letter purposefully withheld their identities for fear of retaliation, with one even saying that many decided to not sign their names because they were worried about being put on administrative leave, which is also exactly what happened to 144 employees at the EPA after they signed a similar letter criticizing the administration. And notably, while it's not always the top of the news of the day, like people speaking out, this is not new. You've had employees at the NIH, NSF, and NASA all signing similar letters, taking issues with new policy. policies and funding cuts. But for now, at least based off what we're seeing, it seems like

Starting point is 00:13:11 they might just be shouting into the voice. So I figured the least I could do is put a spotlight on it when these things happen, especially because when something horrible does happen and everyone's like, I don't know how it happened. At least we can have a small army of people going, really? Look at this. Proper understanding and blame could be had, even though how much does reality matter these days? I don't know. But the next up and some just general what the fuck news, let's talk about Ryan Borgwart. Because for a few weeks last year, he was dead. Or at least that's what his friends, family, and the authorities thought. Because on August 11 to last year, Ryan told his wife that he was going to go kayaking on Green Lake, roughly 100 miles north in Milwaukee.

Starting point is 00:13:43 But then, the next morning, he was gone, and so his wife reported him missing. And at first, his disappearance was investigated as a possible drowning. They found his overturned kayak, tackle box, and phone. And they launch a massive diving, sonar, and cadaver dog search, spending 58 days searching for a body that just never turned up. And so police, they widened the investigation. With him then discovering some clues that made the whole thing smell fishy. Turns out a few months before, Ryan renewed his passport, he was moving money to a foreign bank, account taking out a life insurance policy.

Starting point is 00:14:10 And then when investigators followed this new trail, it led to a woman from Uzbekistan that Ryan had been talking to online. And it turns out Ryan apparently said he loved this woman, he reversed his vasectomy, then faked his death, devastating his wife and kids to go start a new life with his woman overseas. And on the actual night of his disappearance,

Starting point is 00:14:26 he apparently capsized his kayak through his fishing pole, tackle box phone, wallet, and keys into the lake, and rode an e-bike through the night to Madison before taking a bus to Toronto and then a flight to Paris. With a man making his way to the country of Georgia, where he set up his new life. He got an apartment and a job and he settled in with this new woman. But then all of that leading to November where investigators made contact with Ryan finding him alive and well and they persuaded him to come back to Wisconsin. With him then quickly charged with obstructing

Starting point is 00:14:50 an officer and his wife at 22 years divorced him. Now at first he pleaded not guilty but he ended up changing his plea to no contest which isn't an admission of guilt but for the purpose of sentencing it's treated like it is. But then all of that bringing us to why we're talking about Ryan today and that is that he was just sentenced to 89 days in jail. With a judge seemingly not a fan of Ryan thrown out the prosecutor's plan for just 45 days and sentencing Ryan's one day in jail for every day that he was missing from when police started the search to when they made contact with him. Ryan also agreed to pay $30,000 in restitution to the police department reimbursing them for the money that they spent trying to find him. And the judge saying that this specific sentences

Starting point is 00:15:21 meant as a deterrent for anyone else thinking of faking their own debt. Which honestly, up until this moment, I didn't think that there was a need for there to be a deterrent. You know, with all that, as crazy and involved as this story is, it's also not the most surprising. Because like, how many people do you know? They jump through 25 more steps than just dealing with their issues head on. And I'm just left thinking, don't be stupid. Stupid? If you're not happy, just leave. But then, finally today, let's end with congratulations and do one more thing. Starting with congratulations to Alyssa G. Seek's latest weekly winner and Alyssa's using her winnings to go C-17. For the rest of you all, that's right. Seek is still given away $500 in tickets and you should definitely answer today if you

Starting point is 00:16:01 haven't already. I mean, imagine being the next winner and snagging $500 towards seeing your favorite sporting event or play, I mean, it's like over 70,000 events to choose from. And all you gotta do is add code PDS to your seekie gap profile for a chance of the weekly $500 prize, no purchase necessary. But then today's one more thing is that yesterday I got hit up a ton on the text line. People saying, why didn't you talk about Travis Kelsey and Taylor Swift getting engaged? My general response is, hey, bless him, I wish him the best, but I just didn't care. That's not to shade the people that do. Love the Swifties.

Starting point is 00:16:29 I watched a full new Heights podcast that Taylor Swift was on right with my wife. The entire time she's like, I bet they're already engaged. already engaged. I bet they're already engaged. So yeah, there it put a smile on my face to be the one that broke the news to her. When it comes to Taylor Swift and also her relationship with Travis Kelsey, the thing that is interesting and I will talk about is the focus on them. Like it goes beyond parasocial stuff. It gets into the corporate and capitalistic worlds. I mean, you've got things like prediction markets actually had odds on would they get engaged before the end of the year. It's yesterday with the news break and a lot of people won and lost money. Also yesterday was weird because it was like brand account Super Bowl. Like Buffalo Wild Wings offered to cater their wedding. Chili's grilling. Bar was like, hey, we'll do the engagement party. Publix offered to provide the cake and Annie Ann's offered to be the flower girl. And hey, at least Krispy Cream gave out free donuts last night from 5 to 7 p.m. I don't know. I guess I'm just an old

Starting point is 00:17:14 man. I'm not even shouting at a cloud. I'm just an old man. I'm like, I don't want to hear the sentence. Did you see what the cheesecake factory in the Empire State Building said about Taylor Swift's engagement? No, but I saw what Shrek said. We also saw a reaction from the man that is a part of every single story of our lives or at least

Starting point is 00:17:30 the next three and a half years. And that is that Donald Trump, who in September, declared in all caps, I hate Taylor Swift, now said. I think he's a great player. I think he's a great guy. I think that she's a terrific person. So I wish them a lot of love. But hey, all of that said, I'll leave it with two things.

Starting point is 00:17:48 One, they both seem fantastic. I wish them nothing but the best. And two, sending thoughts and prayers to my guys out there and relationships three plus years with women that really want to get married. Because my guy, I know she's looking at you different today. And then that, it's really got me thinking, And are we going to see a rise in proposals over the next year? And then maybe because some people are going to push a little early an increase and then divorces several years from there.

Starting point is 00:18:13 Oh, wait. I also forgot. I forgot about this big-headed bastard. Weirdo Charlie Kirk went on a little rant where around this engagement, he ended up on. Reject feminism. Submit to your husband, Taylor. You're not in charge. And the thing is, it's not like he's a singular weirdo.

Starting point is 00:18:28 Like, it boggles my mind that there are a number of young men that think like this is what masculinity looks like. Like, if you don't treat your woman at, like, your property or your dog, you're somehow, like, bitch-made. It's a sad state of affairs that women have to deal with shit like that, and then guys have to be unnecessarily grouped in with assholes like that. But that, my friend, is the end of today's show. Tap or click right here to watch your newest episode of my podcast, or tap or click right here to watch the most recent Philip DeFranco show. If you've got links in the description for you for either of those,

Starting point is 00:18:54 for YouTube, Spotify, Apple Podcasts, or wherever you most enjoy getting filled in. Thank you for watching. I love yo faces, and I'll see you right back here tomorrow.

The Philip DeFranco Show - MrBeast HUMILIATED Himself & Is Bleeding Millions

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