After two leaders quit, Kevin Hart becomes his company's CEO
What's the story
Renowned actor-comedian Kevin Hart has reportedly taken over as the CEO of his entertainment company, Hartbeat Productions.
The move comes after two CEOs left the company in 15 months and nearly 20 employees were laid off—about a quarter of its workforce.
The departures were amicable but were due to disagreements over the company's strategic direction, per Bloomberg News.
Industry challenges
Hartbeat Productions grapples with Hollywood's austerity measures
Like several independent production companies, Hartbeat Productions is also dealing with Hollywood's current austerity measures.
Major studios and networks are cutting back on project investments, putting pressure on such companies.
However, despite the challenges, Hartbeat remains profitable and is reportedly positioned better than many of its peers.
Hartbeat was among a select group of celebrity-owned companies that gained momentum during the streaming boom, leveraging their founders' star power to secure significant valuations.
Valuation challenge
Hartbeat's high valuation and profitability amid industry downturn
In 2022, Hartbeat raised $100 million from Abry Partners at a $650 million valuation.
However, now the company is too large to survive on producer fees but too small to enjoy significant ownership of its content, reported NYPost.
Despite its profitability, Hartbeat is challenged with justifying its high valuation amid reduced industry spending and tougher market conditions.
Media expansion
Hart's diversified media empire under Hartbeat Productions
Hart has been a prolific actor, comedian, and entrepreneur with ambitions beyond producing film and TV projects.
He launched Laugh Out Loud, a digital comedy platform, and further expanded into advertising with major clients like Lyft and Procter & Gamble.
In 2022, he consolidated his multiple ventures under the Hartbeat banner.
Despite efforts to diversify its business lines under CEO Thai Randolph's leadership, the company's growth coincided with Hollywood's economic slowdown.
Leadership transition
Hartbeat's leadership changes and future prospects
By late 2023, Hart had split from Randolph and downsized the advertising division.
In early 2024, former Warner Bros. executive Jay Levine came on board to steady the ship.
However, Levine and other top executives recently announced their exits, leaving Hart at a crossroads.
With most of Hartbeat's core team still in place, it remains to be seen whether Hart will seek a merger, downsize operations, or explore new avenues for growth.