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Kevin O’Leary’s Brutal Ultimatum Put This Shark Tank Pitch on the Brink

A bathroom product turned into a high-stakes deal fight with Kevin O'Leary over royalties.

By Jordan Major

Edited by Sara Albertelli

Updated Jan. 10, 2026

What looked like a joke pitch about going to the bathroom became one of the most financially aggressive negotiations of the season.

Some Shark Tank pitches succeed and help entrepreneurs get ahead financially because they solve a problem everyone instantly understands, while others work because one Shark sees upside where the rest hesitate. PeeSport landed in the middle of that divide, and its path to a deal came down to a blunt ultimatum, a few cents in royalties, and Kevin O'Leary's willingness to play hardball.

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The pitch

PeeSport is a premium portable urinal designed for men and women, built to turn the panic of needing a bathroom into a quick solution. Founder Henry Snow entered the Tank seeking $150,000 in exchange for a 10% stake in the company. From the start, the pitch forced the Sharks to decide whether this was a novelty item or a high-margin niche product with real distribution potential.

Kevin O'Leary wasted no time challenging the premise. He questioned whether the product was even necessary. "You can just pull over in the desert and get it over with," he said. Henry pushed back, explaining that the product was designed for use cases where pulling over is not an option, including pilots of small planes, Amazon delivery drivers, and long-haul truckers.

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Sales and margins

The conversation quickly shifted to the business fundamentals. PeeSport costs about $3 to manufacture and sells for nearly $40, creating room for strong margins. So far, the product has been sold exclusively through the company's website. Henry shared that sales reached $500,000 last year, generating roughly $130,000 in profit.

Customer acquisition costs sit around $17, while the average order value is $60, numbers that immediately framed PeeSport as a premium direct-to-consumer brand rather than a low-margin impulse product.

With production dialed in, the next phase is scale. He plans to order 100,000 units and expand distribution beyond the website. When O'Leary pressed him on whether that was the real reason for the $150,000 raise, Henry clarified that the capital was meant to unlock distribution growth, not simply increase manufacturing volume.

Royalties to offset risk

O'Leary framed the product through his own investment philosophy rather than personal preference. "I am a premium guy," he said. "I believe in high-end. Even when it comes to peepee toriums like this. I want the premium version." With that framing, he moved quickly to an offer.

O'Leary proposed $150,000 for a 15% stake, paired with a $2 royalty per unit until his investment was repaid. After that, the royalty would drop to 50 cents in perpetuity. It was a familiar O'Leary structure, designed to limit downside risk while preserving long-term upside if the product scaled as planned.

Competition offers shift negotiation

Guest Shark Michael Strahan viewed the product through a different lens. Drawing on experience from long road trips, he said he understood the use case and the appeal. His offer was $150,000 for 17.5% equity, with a $1 per unit royalty until the investment was paid back, after which the royalty would disappear entirely. Henry pushed back immediately, saying he could not go beyond 12% equity.

Strahan favored higher ownership with limited long-term obligation, while O'Leary prioritized downside protection through royalties. O'Leary was unwilling to give that up.

"It has got to have a royalty," O'Leary said. "That is how an investor like me offsets risk. I can be flexible on equity, but not on the royalty." He called it a "classic Shark Tank deal," reinforcing that this was less about headline valuation and more about how risk and reward would be structured over time.

Kevin O'Leary's ultimatum

At that point, O'Leary took control of the conversation. He laid out the math in simple terms. "I have got to sell 75,000 of these before I even get my money back," he said. Then came the line that shifted the negotiation. "You are only going to be on that carpet once. This is your big moment, and you are going to let 50 cents get in the way." He added that his own life would not change if the deal fell apart, but Henry's could change significantly if it went through.

Henry asked whether there was any flexibility on the royalty. O'Leary paused, then delivered his final offer. "This is your last offer. You have to say yes or no," he said. The terms were $150,000 for 12% equity, a $2 royalty per unit until the $150,000 was paid back, and then a reduced royalty of 30 cents per unit in perpetuity.

Henry accepted.

Bottom line

The PeeSport pitch succeeded not because every Shark loved the product, but because one understood how to structure risk around it. The episode offered a clear reminder of what Shark Tank negotiations often come down to. Valuation matters, but deal mechanics matter more.

In the end, Henry did not walk away with the cleanest terms, but he walked away with the ability to build wealth through capital, distribution help, and a partner who believed the upside was worth fighting for, even over 30 cents.

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