Before Shaquille O’Neal Turned Spokesperson for a $1 Billion Company, Mark Cuban Coldly Rejected the Product on Shark Tank

Shaquille O’Neal has made a name for himself as an investor because of his risk-taking nature on novel technologies. One of the major examples of rolling the dice is when he invested in Ring in 2016. In 2013, the founder of Ring Jamie Siminoff took the idea of a wifi video doorbell to Shark Tank back when he had named his company Doorbot. However, Mark Cuban and other Sharks except Kevin O’Leary were not fond of this pitch.

Siminoff who was struggling to get funds for his company went to Shark Tank seeking $700,000 for a 10% stake. Entrepreneur Lori Greiner opined that the product at the time didn’t have enough to “distinguish” itself from other products. Cuban opined that he saw “no progression” in terms of monetary value and didn’t believe that it would grow from $7 million to $80 or $90 million. While relaying this reason, the Dallas Mavericks owner declared that he is “out“.

Meanwhile, O’Leary offered $700k for a 10% royalty which dropped to 7% after he had recouped $700k. He also wanted 5% equity. However, Siminoff didn’t accept the offer and pitched that he’d take $700k as a loan on 10% interest while allowing the Shark a 3% equity. Things didn’t work out and Siminoff walked out without drawing any monetary value from the pitch in which he invested around $10,000.

In 2016, O’Neal didn’t shy away from investing in emerging security companies. Shaq took the step of investing in Ring after advice from Jeff Bezos, who has been a constant guide for the big fella in his business venture. Then in 2019, Bezos’ Amazon bought the company for $1 billion and Siminhoff exited the company in 2023 to explore other horizons. 

Shaquille O’Neal’s relationship with money and investment

Apart from listening to Bezos, O’Neal is actively involved in various high-profile business circles. Therefore, he is open to ideas and knows what are the emerging trends first-up. This approach of building equity rather than seeking quick cash was inspired by Magic Johnson. Then in his Los Angeles Laker days, he was interacting with pioneers in investment day in and day out. He invested in Google during its infancy while he has also acquired stakes in Forever 21 and Lyft to name a few. 

In 2017, O’Neal revealed that he had not always been a smart and keen investor. During his early NBA years, he would splurge on expensive cars, rings, and jewellery just after receiving a check. He once spent $1 million in a day after getting a check from a trading company. However, his bank manager cautioned against such spending and kept a close tab on his expenses. This is when The Big Aristotle hired a business manager and engaged in business circles. This helped him create a blueprint for upcoming athletes and his peers alike.