Logan Paul, co-founder of the beverage company Prime Hydration, has revealed that the company once turned down a private equity investment that could have netted him at least $100 million. In a recent appearance on the PBD Podcast, Paul described the decision to forgo a potential $500 million investment as a significant missed opportunity.
However, Paul's figure is speculative, as Prime remains privately held and no official offer or financial documents have been made public. The comment highlights the difficulty of valuing private companies without transparent financial reporting. In contrast, the recent acquisition of Alani Nu, another creator-driven beverage brand, by Celsius Holdings provides a concrete benchmark for what such deals can look like.
The Prime Missed Opportunity
During the podcast, Paul recounted that private equity firms were prepared to invest $500 million at Prime's peak, but the company chose not to pursue the deal. He estimated that this decision cost him $100 million personally. However, this figure is best viewed as an opportunity cost rather than an actual loss, as the terms of any potential investment—such as price, dilution, and voting rights—were never disclosed.
Prime's rapid growth, which included a reported $1.2 billion in retail sales for 2023, has been widely cited, but retail sales are not equivalent to net revenue. This distinction is crucial for investors trying to assess the company's true value.
Alani Nu: A Real-World Comparison
In 2025, Celsius Holdings announced the acquisition of Alani Nu for $1.8 billion, including $150 million in tax assets, bringing the net price to $1.65 billion. The deal valued Alani Nu at 2.8 times its 2024 revenue of $594.9 million and about 12 times its fully synergized adjusted EBITDA of $137 million.
This transaction provides a clear example of how a creator-driven brand can successfully transition to a larger corporate structure. Since the acquisition, Alani Nu has performed well, generating $732.4 million in revenue in the first half of 2026 and seeing a 55.7% increase in tracked retail sales in the 13 weeks ending June 28. Its U.S. ready-to-drink energy share has grown to approximately 8.7%.
Implications for Investors
While some investors might speculate that Prime's struggles could benefit Celsius, there is no direct evidence of a market share shift. The two brands compete in overlapping but distinct product categories, and Prime has not released audited financial results that would allow for such an analysis.
Moreover, Celsius's own financial performance has been mixed. In the second quarter of 2026, the company's gross margin fell to 48.1%, down from 51.5% a year earlier, and net income dropped 45% to $55.3 million. Management attributed these declines to portfolio mix, transition costs, and increased promotional spending. While Alani Nu is growing, integrating it profitably remains a work in progress.
Key Takeaways
Paul's comments serve as a reminder of the importance of timing in business decisions. For investors, the Alani Nu sale demonstrates the value of tangible transaction data, while Prime's situation underscores the risks of relying on anecdotal estimates. The next decisive developments will likely come from actual financial disclosures or new deals with transparent terms.
