Manoj Bhargava

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Manoj Bhargava
Born1953 (age 72–73) [1]
Lucknow, India
CitizenshipUnited States
Education Princeton University (dropped out)
OccupationsEntrepreneur, philanthropist
Known for 5-hour Energy

Manoj Bhargava (born 1953) is an Indian American businessman and philanthropist. [2] He is the founder of Innovations Ventures, which produces the 5-hour Energy drink, [3] [4] a product he created and launched in 2004. [5] [6] Bhargava has created a number of other ventures as well, [7] many of which have been based out of a technology park he built in Farmington Hills, Michigan. [4]

Contents

For half of 2023, Bhargava controlled publishing for Sports Illustrated , an arrangement followed by a lawsuit alleging breach of contract and failure to make payments. [8] The U.S. Food and Drug Administration (FDA) has investigated 5-Hour Energy over numerous potentially linked fatalities. Its owner Living Essentials has been sued by dozens of state attorneys general for deceptive advertising, resulting in a $4.3 million penalty in a Washington state case.

Involved in philanthropy, Bhargava joined the Giving Pledge [9] and his Billions in Change organization funds humanitarian projects. [10] He has founded a number of charity organizations, including the Rural India Supporting Trust. [11] As of 2025, his philanthropic activities were the subject of a US federal investigation. [12]

Early life and education

Bhargava was born in Lucknow, Uttar Pradesh, India in 1953. [1] [13] At the age of 14, he moved with his family to the United States, where his father pursued a doctorate at the University of Pennsylvania's Wharton School. [14] [1] After showing an aptitude for mathematics, Bhargava attended The Hill School on a scholarship and enrolled at Princeton University in 1972. He left the university after one year. [13] [15] [7]

In 1974, Bhargava returned to India and spent more than a decade at an ashram named Hanslok, which was associated with Guru Shri Hans Ji Maharaj. [15] [14]

Career

Early projects, Living Essentials (1980s-2011)

Bhargava returned to the United States in the mid-1980s and joined his family's plastics manufacturing business in Indiana. [16] He later acquired and managed several plastics companies, ultimately selling the business in 2006. [7] [17]

He formed Innovative Ventures LLC, his first venture, in 1998. Among its first products was Chaser, an anti-hangover product. He created Living Essentials as an arm of Innovative Ventures to market the product. [4] After attending a natural products trade show in 2003, Bhargava developed a two-ounce caffeinated beverage, naming it 5-hour Energy. He launched the product in 2004. [5] Marketing and distribution were handled by Living Essentials LLC, [18] which was set up as a subsidiary of his company Innovations Ventures. [5] With Bhargava serving as CEO of Living Essentials, [18] the product gained market traction. Living Essentials had estimated retail sales of $1 billion in 2011, [5] [11] and by 2012, Living Essentials, according to Forbes, was "the biggest player by far" in the energy shot market. Much of its retail dominance was attributed to Bhargava successfully pursuing copycat products with lawsuits. [11] In November 2011, Living Essentials won a trademark infringement case it had filed in 2008 against a competitor, one of seven federal cases the company resolved that year. [16] By the early 2010s, Living Essentials had participated in up to 90 court cases against competitors, suppliers and associates. [5] [ failed verification ]

Investment firms and Stage 2 (2007-2015)

With Bhargava as the investment firm's CEO, MicroDose Life Sciences was formed in 2007. The firm made its first investments in 2010. [18] Bhargava confirmed in 2011 that he was building a technology park in Farmington Hills, [4] out of which he launched venture funds [7] such as Plymouth Real Estate Holdings LLC. [7] [16] By 2011, he had founded two venture capital firms: Lifeline Ventures LLC, and ETC Capital LLC. [4] He launched his third investment fund, [16]  Stage 2 Innovations, in May 2011 with $100 million of his own funding. [19] Formed with Tom LaSorda, [11] the manufacturing venture laboratory invests in projects intended to help impoverished communities. [20]

He founded a new private equity firm, Oakland Energy and Water Ventures, in Michigan in March 2014, which operates as a Stage 2 spinoff. [19] Also in 2014, he financed a New York City-based film distribution company, Bleecker Street. [21] By 2015, he had reportedly formed 70 limited liability companies in Michigan overall. [22] By 2015, the 5-Hour Energy brand was operated by Innovation Ventures, Living Essentials, and MicroDose Sales. [22]

Political donations (2009-2015)

By 2015, Bhargava and his companies had become major political donors in the US, contributing at least $5.3 million to state-level political campaigns from 2009 to 2015. This included state attorneys general, their associations, and groups such as the Republican Governors Association, [22] with $2.5 million in 2014. The Center for Public Integrity noted that the timing of the donations coincided with state-level investigations and lawsuits targeting 5-hour Energy. After a New York Times article highlighting contributions to the attorney generals, "Bhargava and his company accused attorneys general of soliciting political contributions from the company while it was being investigated by them." [22]

Living Essentials lawsuits (2010s-2017)

Living Essentials' sales had declined by the early 2010s, [5] with 5-hour Energy involved in legal matters relating to marketing and product safety. After receiving filings citing 5-hour Energy in relation to consumer deaths and serious health incidents, by 2015 the U.S. Food and Drug Administration (FDA) was investigating more than 20 fatalities potentially linked to the product. By that time, attorney generals in several states had also initiated legal action against 5-Hour Energy, alleging deceptive advertising. 33 states had jointly investigated the company. The company also faced consolidated class-action lawsuits from consumers alleging false advertising. [22] In 2017, a Washington state court ruled that 5-hour Energy's advertising had violated consumer protection laws, ordering a fine of $4.3 million. [23] Living Essentials denied wrongdoing but paid the penalties. [22]

In 2018, a group of wholesalers filed an antitrust lawsuit against Living Essentials. The suit alleged that the company provided Costco Wholesale with exclusive discount pricing in violation of U.S. price discrimination laws. In 2024, the U.S. Supreme Court declined to hear an appeal from the company, allowing the lawsuit to proceed. [24]

Media acquisitions (2022-2024)

Through his companies Bridge News LLC [25] and MBX Wyoming, in January 2022 he purchased 90% of Freelancer Television Broadcasting, which owned networks and stations such as NewsNet, WMNN-LD and WXII-LD. [26] [27] In August 2023, Bhargava's Bridge Media Networks acquired a majority stake in The Arena Group, owner of several magazine brands, [28] for $100 million. [29]

In December 2023, Bhargava was named interim CEO of Arena Group, [8] gaining control of the publishing operations for Sports Illustrated. [29] In March 2024, Minute Media took over the licensing agreement with Sports Illustrated from Arena Group, ending Bhargava's association with the magazine after six months. [29] Authentic Brands Group, the owner of Sports Illustrated, sued Bhargava in April 2024 for breach of contract, seeking $50 million in damages. The lawsuit, which described Bhargava as a "gangster" and accused him of making discriminatory remarks, alleged he failed to make millions in licensing payments and had planned to terminate the magazine's staff. [29] In August 2024, NewsNet and its sister network SportsNews ceased operations. [30] [25]

Recent developments (2023-2026)

In 2023, Bhargava launched several hydration drink brands – True Hydration, [31] Cellular Hydration, and Natural Glow Hydration. [32]

Despite the initial fanfare, India West stated in 2024 some of the projects worked on by his Stage 2 venture had "proved impractical", [33] with the electrical bike, for example, expensive and inefficient. The bike and ocean water conversion projects had been dropped by 2024, with the lab focusing instead on products such as its Hans Premium water filtration system. [2]

Vitamin Energy filed a $1 billion lawsuit against Bhargava and Living Essentials in late 2024, alleging monopolistic practices and false advertising regarding the benefits of 5-Hour Energy. This case was ongoing in late 2024. [34]

Philanthropy

Bhargava joined the Giving Pledge, pledging to donate over 90% of his fortune. [35] [9] He has founded a number of charity organizations, such as the Rural India Supporting Trust. [11] Bhargava's Billions in Change initiative, [9] [20] which funds humanitarian projects, [10] was featured in the documentary film Billions in Change in 2015. [9] [20] [36]

Tax evasion investigation

His charitable giving methods have been the subject of investigation. [11] In 2009, he donated 45% of Living Essentials, valued at approximately $1 billion, to the Rural India Supporting Trust, a charity he established. The trust later sold this stake to a separate entity linked to Bhargava in exchange for a $624 million promissory note. This transaction allowed Bhargava to claim a large tax deduction. [11] Investigating the transaction, in 2018 the Internal Revenue Service (IRS) disqualified several hundred million dollars in tax deductions. [33] After federal grand jury requested 12 years of his financial records in 2021, [2] The U.S. Senate Finance Committee was examining the transactions by 2024, [37] focusing on offshore holdings and possibly improperly claimed charitable deductions. Senator Ron Wyden, chair of the Senate Finance Committee, suggested the case could result in one of the largest tax penalties in U.S. history. With Bhargava denying his donations failed to comply with all tax guidelines, the investigation was ongoing as of 2025. [33]

Personal life

Bhargava is married with one child, and lives in Farmington Hills, Michigan. [15]

References

  1. 1 2 3 "Manoj Bhargava, richest Indian in US commits 90% earnings to charity". The Economic Times . 10 April 2012. Archived from the original on 23 September 2012.
  2. 1 2 3 Patrick, Margot (14 October 2024). "He Was a Monk, Then a Billionaire and Now an Alleged Tax Cheat" . The Wall Street Journal . Retrieved 15 October 2024.
  3. ↑ "Manoj Bhargava, Founder and CEO, Innovation Ventures LLC and Living Essentials LLC". Smart Business. 1 July 2012. Retrieved 24 January 2016.
  4. 1 2 3 4 5 Duggan, Daniel; Walsh, Dustin (29 May 2011). "Energy Drink King Behind $100m Fund: Bhargava Sets Up Tech Park For New Firms". Crain's Detroit Business. Retrieved 24 January 2016.
  5. 1 2 3 4 5 6 Ben Wieder (26 March 2015). "The political kingmaker nobody knows". Center for Public Integrity .
  6. ↑ O'Connor, Clare (8 February 2012). "The Mystery Monk Making Billions With 5-Hour Energy". Forbes .
  7. 1 2 3 4 5 Duggan, Daniel (19 February 2012). "Wizard of odds". Crains Detroit.
  8. 1 2 Josh, Taylor (12 December 2023). "Arena Group fires CEO in wake of Sports Illustrated AI articles scandal". The Guardian.
  9. 1 2 3 4 Ilan, Mochari (15 October 2015). "Inside the Mind of the Billionaire Who Built the 5-Hour Energy Empire". Inc Magazine. Retrieved 22 November 2015.
  10. 1 2 Ilan Mochari (15 October 2015). "Inside the Mind of the Billionaire Who Built the 5-Hour Energy Empire". Inc. Retrieved 24 January 2016.
  11. 1 2 3 4 5 6 7 "The Secret Sauce in 5-Hour Energy". www.forbesindia.com.
  12. ↑ Javers, Eamon (21 March 2024). "5-hour Energy billionaire named in Senate Swiss bank tax probe". CNBC . Retrieved 15 October 2024.
  13. 1 2 Murphy, Eamon (9 February 2012). "5-Hour Energy: A Success Equal Parts Caffeine, Chemistry and Meditation". DailyFinance.
  14. 1 2 Staff writer (11 October 2015). "Dropout, Monk and billionaire". Sunday Times of India.
  15. 1 2 3 "Profile". Forbes .
  16. 1 2 3 4 "Newsmakers of the Year 2011". Crains Detroit Business . 1 January 2012.
  17. ↑ Frank Esposito (4 June 2007). "Spell purchases Prime PVC". Plastics News.
  18. 1 2 3 Gormley, Brian (19 May 2010). "With Tempting Idea For Start-Ups, MicroDose Makes First Two Deals". Wall Street Journal.
  19. 1 2 Tom Henderson (4 March 2014). "Bhargava Funds Company to Invest in Water, Energy Deals". Crain's Detroit Business. Retrieved 24 January 2016.
  20. 1 2 3 Koch, Wendy. "Creator of 5-hour Energy Wants to Power the World's Homes—With Bikes". National Geographic . No. Oct 6, 2015. Archived from the original on 7 October 2015. Retrieved 22 November 2015.
  21. ↑ Cheney, Alexandra (13 August 2014). "Ex-Focus Features Chief Launches Distribution Company". Variety. Retrieved 11 April 2016.
  22. 1 2 3 4 5 6 Wieder, Ben (26 March 2015). "The political kingmaker nobody knows".
  23. ↑ "AG: 5-hour ENERGY® makers ordered to pay nearly $4.3 million for consumer violations | Washington State". www.atg.wa.gov.
  24. ↑ https://www.reuters.com/legal/government/us-supreme-court-wont-hear-5-hour-energy-drink-pricing-case-2024-10-07/
  25. 1 2 Manes, Nick (2 August 2024). "5-hour Energy founder shuts down news network he bought 2 years ago, laying off 80". Crain's Detroit Business . Retrieved 2 August 2024.
  26. ↑ "Assignee Parties Addendum". WXII-LD FCC Filing. Retrieved 23 January 2022.
  27. ↑ "MI News 26 Founder Starting National News Network". TVNewsTalk.net. 23 January 2022. Retrieved 23 January 2022.
  28. ↑ Venta, Lance (14 August 2023). "5-Hour Energy Founder Expands Media Holdings Including Audacy & Cumulus Stakes - RadioInsight" . Retrieved 15 August 2023.
  29. 1 2 3 4 Dugan, Kevin T. (1 April 2024). "Sports Illustrated's Ex-Publisher Was a Transphobic 'Gangster': Suit". Intelligencer.
  30. ↑ "Michigan-Based Newsnet Ceases Operations". Michigan Association of Broadcasters . 9 August 2024. Retrieved 11 August 2025.
  31. ↑ Buss, Dale (1 July 2023). "A Category Pioneer Stays Energized". Institute of Food Technologists. Retrieved 6 November 2023.
  32. ↑ "Natural Glow Hydration". Natural Glow Hydration. August 2023. Retrieved 6 November 2023.
  33. 1 2 3 Author, The (29 October 2024). "5-Hour Energy Drink Boss, Manoj Bhargava, Under Investigation For Fraud".{{cite web}}: |last= has generic name (help)
  34. ↑ https://www.reuters.com/legal/litigation/5-hour-energy-sued-by-rival-drink-maker-over-market-dominance-2024-11-25/
  35. ↑ "Current Pledgers". The Giving Pledge. Retrieved 29 July 2015.
  36. ↑ Kumar, Bhaswar (22 October 2015). "Manoj Bhargava's crusade: From energy drinks to limitless energy". Business Standard . Retrieved 22 November 2015.
  37. ↑ Cioffi, Chris; Voreacos, David (21 March 2024). "5-Hour Energy Founder, Swiss Bank Focus of Senate Tax Probe". Bloomberg News . Retrieved 15 October 2024.
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