Kevin Hart, one of the most successful stand-up comedians and actors of his generation, has always been entrepreneurial. However, a year of chaos and conflict at his media company, Hartbeat, has raised questions about its future.
The Authentic Brands Group Deal
When Hart announced in January that he had licensed his name to Authentic Brands Group, he remained silent on a key detail: the future of his namesake media company. The deal gave Hart money to buy out his private equity partner over time and regain control of his name, image, and likeness. However, his endorsement deals, once a pillar of Hartbeat's business, will now be handled by Authentic.
Decline of Hartbeat
Once valued at about US$650 million, Hartbeat has shriveled over the past few years. The company enacted its latest round of job cuts in December, firing the heads of its scripted TV division, as well as employees in marketing, social media, and brand partnerships. Earlier this year, it let go of the leaders of its podcast division and later sued them for breach of contract.
Hart has withdrawn from the company, leaving day-to-day management to a small group of executives. Staff meetings have been cancelled, development of new film and TV projects has slowed, and a slate of new podcasts was pitched but never produced.
Challenges in Hollywood
Hartbeat's struggles reflect the challenging environment for many Hollywood production companies as media giants merge and cut spending. The company is a cautionary tale in the age of the celebrity media mogul. Financial firms have poured money into media companies led by high-profile figures, believing they could use their notoriety to build valuable businesses. Yet even seemingly successful ones have had a hard time.
Hartbeat, like many of its peers, has suffered from mismanagement and grappled with the tension between the needs of the star and his company. Hart, one of the hardest-working people in Hollywood, tired of subsidizing a company that relied so much on him.
Hart declined to comment for this story, which is based on conversations with several current and former employees. On Sunday night, Hart, who hosted the widely viewed roast of NFL great Tom Brady two years ago, was the subject of his own roast on Netflix.
