All is not well with Cameo. That’s the app where you can get lesser celebs like disgraced former member of Congress George Santos to record a custom video for you. The company just had a settlement for $600,000 imposed on it. And the platform doesn’t have the cash to pay it off. So the judge involved says it only has to pay $100,000.
Just a reminder that in 2021, Cameo had a $1 billion valuation. In March of this year, its valuation was cut by more than 90% in the mother of all down rounds (a cramdown Series D, according to Fortune).
Cameo was the punchline of jokes even before George Santos came along. Caitlin Jenner commands the highest fees among celebrities who record custom video greetings on the platform. Apparently, she charges $2500 to tell your ex where to go. Or wish them a happy birthday. It’s the same either way for Caitlin.
Calling Cameo an influencer platform for D-list celebrities might be an insult to actual D-listers. But there isn’t a self-respecting D-lister anywhere who wouldn’t take $2500 just to say “Happy Birthday, Brad!”
That said, for all the fanfare (and ridicule) that Cameo has engendered, at one point it was a great business. Or was it just over-valued?
Founded in 2017 by Steven Galanis, Devon Townsend, and Martin Blencowe, Cameo blew up during the pandemic, where people were endlessly scrolling and celebs had to figure out how to make a buck.
People are back out in the world. And they’re still scrolling. And D-list celebs still need income (hello George Santos). But all is not rosy in the land of short custom “celeb” videos.
Shocked, Shocked to Find Advertising on Cameo
The bottom line is that Cameo appears to be broke. Or close to it. This week we learned that Cameo lost a case brought by 30 state attorneys general claiming the platform failed to disclose that celebs were paid to endorse certain products. I mean, did anyone think they weren’t paid?
This resulted in the $600,000 settlement. This led Cameo to submit financial documents to the judge saying it couldn’t pay. These were convincing enough to get the judge to cut Cameo a break.
The settlement also requires Cameo to better disclose these financial arrangements in the future. And if it violates the terms of the settlement, it will be on the hook for the remaining $500K. Better straighten up and fly right, Cameo.
So what happened, Cameo? The company raised gobs of money from the likes of Keiner Perkins, Google Ventures, and Tony Hawk.
The exact reason why Cameo has fallen so far isn’t clear. However one of its core problems was that it initially saw itself as an alternative to the existing talent management system that didn’t really allow celebs to directly engage with fans and make money doing so.
But instead of getting the A-list to make custom content for fans, the D-list lined up around the block. So instead of Tom Hanks, you got second-tier former WWE stars. I guess it’s hard to hang onto your unicorn status with a talent pool like that.
