YouTube megastar MrBeast announced Monday that his company Beast Industries will acquire Step, a banking app for teens.
Step, which has raised $500 million in funding and grown to over 7 million users, provides financial services to Gen Z that help them build credit, save, and invest. The company has attracted high-profile investors such as Charli D’Amelio, Will Smith, The Chainsmokers and Stephen Curry, as well as venture firms such as General Catalyst, Cotoo and payments company Stripe.
If the company wants to keep its fintech products in front of young people, it would be wise to partner with Gen Z genius Mr. Beast. MrBeast (real name Jimmy Donaldson) is YouTube’s most subscribed creator with over 466 million subscribers, but his ambitions go beyond flashy videos.
“When I was a kid, no one taught me about investing, building credit, or managing money,” the 27-year-old said. “I want to give millions of young people the economic foundation that I never had.”
The acquisition makes sense given that pitch documents leaked last year indicated it was an area of interest for Beast Industries. The company is also reportedly interested in launching a mobile virtual network operator (MVNO), a low-cost cell phone plan similar to Ryan Reynolds’ Mint Mobile.
Like other top creators, Beast Industries’ business extends far beyond YouTube ad revenue. (In fact, the company reinvests much of that money into content.) Leaked documents reported by Bloomberg show that the company’s cash cow is its chocolate brand Feastables, which is more profitable than its YouTube channel MrBeast and its Prime Video show Beast Games. Some of his other businesses have struggled, including Lunchly and MrBeast Burger.
“We are excited about how this acquisition strengthens our platform and brings even more innovative products to Step’s customers,” Step founder and CEO CJ McDonald said in a statement.
