Deadpool actor1/3/2023 ![]() ![]() ![]() New brands come into favor, fall out of favor, and go bankrupt all the time. For example: What happens if a consumer doesn't buy a second bottle? What if instead of a bottle of Aviation, they go on to try the next novelty alcohol instead, and the 100% sales growth Aviation saw last year starts to slow?Ĭonsumers can be fickle with their discretionary spending, after all. Aviation, for example, enjoyed better than 100% sales growth the year after Reynolds bought into it.Īlmost certainly, part of that growth came from consumers intrigued by Reynolds' involvement in the project and willing to buy a bottle to see what all the fuss was about.īut even so, I think there are lessons investors can learn from Reynolds' investments. Moreover, Reynolds is able to leverage the star power of his name to grow the value of the brands he invests in. Both Aviation and Mint were, after all, private companies, and few ordinary investors have access to those kinds of opportunities. Granted, not everyone can make these kinds of investments. What investors can learn from Ryan Reynolds If this is how things play out, Mint may become Reynolds' next winning investment. In November last year, Reynolds revealed he had purchased a large interest (reportedly more than 25%) in discount prepaid cellphone service provider Mint Mobile.Įven Reynolds acknowledged that his move into wireless telephony is a bit "unconventional." So why make the switch from premium gin to prepaid cell service?Īs Reynolds said in the company's announcement at the time, "the average American is paying 65 dollars a month" for telephone service that is "most essential." But by piggybacking aboard the cell network of T-Mobile US ( NASDAQ:TMUS), and T-Mobile's infrastructure to carry Mint's service, Mint Mobile is able to provide "premium wireless" service to its customers for as little as $15 a month.Ī rate that low could help Mint steal market share among budget-conscious consumers and outgrow bigger rivals such as AT&T, Verizon, and T-Mobile itself. From premium gin to plebeian phone serviceĮven before the Aviation Gin sale was announced - perhaps even before negotiations had begun - Reynolds was already working on a second major investment, and this one headed in an entirely different direction. But even if he owned as little as 10% of the company (for example), $610 million divided by 10 would still be a lot of money - certainly more money than the $2 million he was paid for starring in Deadpool.Īnd Reynolds didn't stop there. Now, because Reynolds' initial investment in Aviation Gin was never disclosed, and because we likewise don't know what percentage of Aviation Gin he acquired for that investment, it's impossible to say precisely how much of the $610 million will be going into Reynolds' pocket. ![]()
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