Fortnite: SypherPK explains why Ninja could have declined a $60 million deal from Facebook

(Image Credit: @SypherPK)

Back when Facebook Gaming bought out Microsoft’s streaming platform, Mixer, it was reported that the Fortnite pro Ninja declined a $60 million deal to stream on their platform. Originally it was uncertain why Ninja would have declined this deal, now a fellow Fortnite streamer, SypherPK, provides some insight.

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Facebook offers $60 million to Fortnite pro Ninja

I love my community and what we built together on Mixer. I have some decisions to make and will be thinking about you all as I make them.

— Ninja (@Ninja) June 22, 2020

The reason for this massive offer was that Ninja previously had a contract with Mixer to stream exclusively through that platform, whether Fortnite or other games. When Facebook Gaming purchased Mixer, they were then under obligation to purchase the contracts Mixer had with other streamers, or Mixer would have to pay their contracts in full.

Since both Ninja declined a new contract through Facebook Gaming, Mixer was forced to pay the whole $30 million contract up front.

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Why decline a $60 million contract?

Originally, it was believed that Ninja might have declined the contract to stream through Facebook Gaming simply out of a desire to have his full contract’s payout paid early. $30 million is a large sum of money for almost anyone, and having the opportunity to get that paid out right away sounds like a good deal.

As a streamer, Ninja was likely going to stream Fortnite and Valorant regardless of whether he was under contract or not. But if Ninja only cared about the payout, why would he turn down the chance to double it for a year’s worth of work that he likely already intended to put in.

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SypherPK offers a Fortnite streamer’s insight

I slept in, going live within the hour 👹

— SypherPK (@SypherPK) July 21, 2020

SypherPK’s suggestion is that Ninja and his team turned down the contract because they believed the $60 million deal was not worth the potential damage it could do to Ninja’s brand. Ninja had already taken a large hit to his brand when he made the switch to Mixer, SypherPK pointed out, and he may have been hesitant to do that again with another switch to Facebook Gaming.

$60 million might be a lot for a year’s worth of work, but if it damages the brand then Ninja likely wouldn’t be able to negotiate a similar deal the year after. In this case, it makes the choice to decline the contract sound like a business decision, turning down a high payout now in the hopes of building up a large payout in the future.

The added $30 million will likely be put towards building up Ninja as a brand, according to SypherPK, as he continues to grow his Fortnite and Valorant audiences.

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What does this mean for the future of Ninja?

FIRST YOUTUBE STREAM EVER THIS IS LIT https://t.co/r3BxaPPabY

— Ninja (@Ninja) July 8, 2020

Ninja has since resumed streaming on YouTube. If we assume that Ninja is more than just a personality, and that he is the rational head of a brand and business, then it is likely that Ninja is currently seeking an exclusive contract even as he continues to build his brand.

Moving to YouTube is likely a good move for his brand simply because of its Fortnite community and viewership, but we can speculate that Ninja is seeking a contract to stream on Twitch. Twitch is still the top platform for streamers to go to in order to build up their brands, and Fortnite still pulls in top numbers over there. It’s the biggest streaming platform by far, and of the three largest streaming platforms it is still the only one dedicated to streaming over other content.

Twitch likely also holds a special place for Ninja as it is where he got his start with Twitch's Fortnite community. If he is seeking a contract with Twitch, however, then it makes sense that he would stream on YouTube or other platforms for now, as Twitch would not likely seek a contract with Ninja if he were already streaming through their platform.

By streaming through YouTube, Ninja encourages Twitch to seek a contract both to acquire his talents, and to remove his presence on a competitor’s platform. Whether or not this is how it will play out, however, we can only wait to find out.