YouTuber Doug DeMuro Just Got a $37 Million Cash Infusion for His Car Auction Site
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Automotive journalist Doug DeMuro has been on the fast track since becoming a YouTube sensation with his car reviews. Now, his fledgling Cars & Bids online-auction platform, is getting a $37 million infusion from the Chernin Group, a leading investment firm. In the words of 34-year-old DeMuro, this is a big deal.
“It’s going to allow us to take Cars & Bids to the next level, let me refocus on making YouTube videos and get the help of a group of people who actually know what they’re doing,” DeMuro tells Robb Report.
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As part of the deal, the Chernin Group (TCG) will take a majority stake in a new company that will combine DeMuro’s YouTube work and Cars & Bids into one venture. It will also place Ro Choy, an expert in business transformation, as CEO.
“For the past three years, I’ve effectively been doing two jobs, building up Cars & Bids while creating videos for YouTube,” says DeMuro. “For us to grow, we needed the help and expertise of TCG, who really understand the business.”
Since launching his YouTube channel in 2013, DeMuro has become the most-watched car reviewer in the US. Famous for his “Quirks and Features” segments and “Doug Score” ratings, his videos have racked up more than 1.7 billion views and an impressive 4.5 million subscribers. In 2019, DeMuro partnered with tech entrepreneur and car enthusiast Blake Machado and developed their online-auction platform, which focuses on buying and selling enthusiast vehicles from the 1980s to today.
With sales of over $230 million, Cars & Bids has become a top destination for those on the hunt for often-unusual late model cars—and a solid rival to the well-established Bring a Trailer collector-car site. What kind of changes will the TCG investment likely bring? More staff for starters, according to DeMuro. The auction team currently totals 18 people, but is actively looking to expand. Also, expect to see DeMuro reviewing more of the vehicles being auctioned on Cars & Bids, especially some of the more quirky offerings.
“I think the current format will largely stay the same. It’s what people seem to love,” says DeMuro, “but I think we’ll add new features to make it easier for bidders to negotiate the site. And I’ll continue to play a part in it.”
Ro Choy takes on the CEO role after holding a similar position with Eaze, a cannabis-on-demand marketplace that went from $20 million to $200 million in sales under his leadership. The passionate car lover also served as CEO of software developer BitTorrent, and was Chief Business Officer at Luxe, an on-demand valet-parking app acquired by Volvo.
As for TCG, it’s an affiliate of a Los Angeles–based private equity firm that specializes in turning-around consumer businesses. Its portfolio includes the likes of sports and pop culture blogs Barstool Sports, Epic Gardening, Food52 and watch-collector website Hodinkee.
“The success of Cars & Bids never fails to astonish me,” says DeMuro. We launched in May 2020, not quite at the start of Covid, but not far behind. My assumption was that it would immediately fail. But by sheer dumb luck, we launched into this unbelievable car market.”
The first automobile to be auctioned? That was DeMuro’s own 2012 Mercedes-Benz E63 AMG station wagon. “The guy who bought it still owns it and regularly sends me photos. It’s hard to believe we’re now past 10,000 auctions.”
High-dollar sales since 2020 have included a 2006 Ford GT for $395,000, a 2002 Lamborghini Murciélago for $417,000 and a Hummer-like 1996 Toyota Mega Cruiser that went for $310,000. For seemingly no special reason, the site currently corners the market for sales of high-profile electric trucks, like the Hummer EV, Rivian R1T and Ford Lightning.
So, with investment cash in the bank, what car did DeMuro rush to buy as a reward to himself? “I wanted my absolute dream car, a Porsche Carrera GT,” admits DeMuro. “Instead, and this is kind of embarrassing, I bought a 2022 Mercedes E450 Wagon, and not even an AMG. It’s what parenthood does to you.”
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