Scoop: Tucker Carlson buys out investors in his media company
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Tucker Carlson and his business partner, Neil Patel, recently bought out investors in their media company, Tucker Carlson Network (TCN), a source familiar with the deal tells Axios.
Why it matters: The deal gives the pair complete independence and total control of the company they co-founded in 2023.
- "It's hard to claim you're independent when other people own your company, so we decided not to take investments or loans of any kind," Carlson told Axios in a statement, confirming the deal.
- "Our business is owned by the people who work there. You can disagree with our opinions but you can't say we're paid to have them, and we're proud of that."
Catch up quick: Carlson and Patel raised roughly $15 million for TCN from a group of investors in late 2023 after Carlson parted ways with Fox News.
- The pair have a long history, having co-founded the Daily Caller together in 2010. Patel currently serves as co-founder and CEO of TCN.
- The bulk of the cash raised for TCN came from 1789 Capital, which was founded by banker Omeed Malik to invest in "anti-ESG" companies.
State of play: 1789 Capital's investment is structured as a SAFE (simple agreement for future equity), Axios reported.
- The SAFE structure allowed Carlson to convert his investors' cash into equity if he later chose to raise more money at a set valuation.
Yes, but: When TCN became profitable more quickly than expected, they became less inclined to raise another round. And with no plans to sell the company, a buyout offered liquidity for existing investors.
- Because of TCN's profitability, investors saw a positive return on their investment, according to one source familiar with the transaction.
Between the lines: The success of product investments outside of TCN also gave Carlson and Patel the confidence to buy back their company.
- Carlson and Patel launched a nicotine pouch product called ALP last year as a joint venture with Turning Point Brands, a publicly traded smoking accessories company. TPB's share price has skyrocketed by nearly 30% since ALP's launch announcement in November, reaching an all-time high last month.
- Before launching ALP, Carlson was a supporter of ZYN nicotine pouches, produced by tobacco giant Philip Morris International. He created a rival product after criticizing PMI over political donations made by the company's employees.
What they're saying: "We have had a great start at TCN. We have also started other ventures, including our ALP nicotine pouch brand which has really taken off," Patel said in a statement to Axios.
- "This strong start gave us no need for outside capital and gave us the ability to buy out all of our investors and achieve absolute independence. We are grateful to our investors for backing us at our start and happy to have provided them a strong return on their investments."
What's next: TCN's business is primarily driven by consumer subscriptions, as well as some advertising.
- The company produces a daily show that lives on its owned and operated channels, as well as social media.
- It's also started producing documentaries for subscribers and recently launched a free TV app.
