Prank-O Gift Boxes Update | Shark Tank Season 10

Arik Nordby came up with the idea for Prank-O after seeing his nephew open a gift that looked like a toaster oven, but it actually had video games inside. Everyone laughed, and that’s when Arik realized how funny it is to trick someone with a fake box.

After that, he and Ryan Walther decided to create Prank-O, a company that makes joke gift boxes to make gift-giving more fun. Will the sharks get the joke and invest? Let’s find out in our Prank-O update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to Prank-O after Shark Tank.

Arik and Ryan entered Shark Tank Season 10, seeking $640,000 for 8% equity in their gift box brand. After their pitch, they made a deal with Mark Cuban for $640,000 for 25% equity.

In terms of a Prank-O update, the company capitalized on pandemic-related humor by launching timely products like The Toilet Paper Safe, which boosted sales. Further, since airing Prank-O has grown to around $6 million in annual revenue.

Shark:	Result:
Mark Cuban	Accepted deal for $640,000 for 25% equity
Kevin O’Leary	$640,000 for 0% equity, and a $0.38 cent royalty in perpetuity
Daymond John	No offer
Lori Greiner	No offer
Mark Cuban	No offer

Shark Tank Prank-O Pitch

• Entrepreneurs: Arik Nordby and Ryan Walther
• Business: Prank gift boxes
• Ask: $640,000 for 8% equity
• Result: $640,000 for 25% equity
• Shark: Mark Cuban

Ryan and Arik entered Shark Tank to pitch their company, Prank-O, which ultimately makes prank gift boxes for your gift giving.

They opened with a fake pitch for a product called the Snack Hat, a neoprene cap with a magnetic, dishwasher-safe snack tray.

Next, they showed more fake products. Then they handed each shark a prank gift box.

After the demonstration, they revealed the truth. Their real business is Prank-O, a company that sells fake product boxes used for wrapping real gifts.

Each box is printed with a fake, ridiculous product to make the recipient think they’re getting something strange or useless.

The real gift goes inside the box, and the fun comes from watching the reaction when someone opens it. It’s a simple way to add surprise and laughter to gift-giving.

Ryan added that the company had sold over $10 million worth of prank boxes since 2013 and expected to make $2.8 million in 2018.

For their business model, they sell both online and through mass retail. The boxes cost $0.66 to make and sell for $8. The sharks were impressed by the margins.

Ryan shared his background as a founding partner at The Onion, a satirical media company.

Arik said he worked as a freelance graphic designer for 20 years. He got the idea for Prank-O after watching his nephew open a gift disguised in a misleading box.

The biggest prank of all seemed to be the fact that the company had racked up millions of dollars in debt, which was a major concern for the sharks.

Lori Greiner brought up seasonality. Ryan and Arik explained that gifting happens year-round.

They mentioned birthdays, anniversaries, graduations, and holidays as target occasions.

Specifically, Lori, who wasn’t really a big fan of the seasonal business model, dropped out.

Daymond John said the business wasn’t investable and also went out.

Barbara Corcoran said the high debt and lack of profit turned her off, so she passed, too.

Mark Cuban offered $640,000 for 25% equity. After a few moments to think about their offer, Kevin O’Leary decided to take a different approach when making his own unique offer.

He gave a different offer of $640,000 for 0% equity and a $0.38 per unit royalty in perpetuity.

Kevin said he could help grow their direct-to-consumer sales, citing his success with Lovepop, Potato Parcel, and Wicked Good Cupcakes.

Ryan asked if Mark would lower his equity ask to 15%. Mark said no.

They then offered 20% equity and a line of credit, which Mark also rejected. He said the business needed a lot of work, and 25% was non-negotiable.

In the end, Ryan and Arik accepted Mark’s offer.

Keep reading our Prank-O update to find out if this company has pranked its way to success.

Shark Tank Prank-O Update

Our Prank-O update found that the deal with Mark Cuban didn’t close after due diligence. Still, the company didn’t slow down.

During the pandemic, Prank-O saw a sales spike with timely gag boxes like The Toilet Paper Safe and The Toilet Paper Printer.

In 2021, they relaunched their Amazon store and kept expanding their product line.

Further, our Prank-O update found that he company has grown to around $6 million in annual revenue.

Their fake product boxes are available through the Prank-O website and major retailers like Amazon, Target, Walmart, and Urban Outfitters.

It looks like things are headed in the right direction for our next Prank-O update.

In the meantime, you can check out our other company updates from Season 10 Episode 7 by following the links below!

• Hire Santa Update
• Ski-Z Update
• Oatmeals Update

Before you go, be sure to check out our list of all the Shark Tank Season 10 products.