Candle Media Sells Hello Sunshine Stake; Witherspoon Buys Back
Reese Witherspoon is buying back Hello Sunshine from Candle Media in partnership with France-based Mediawan, according to Deadline.
Candle Media has sold its majority stake in Hello Sunshine, with Reese Witherspoon buying the production company back in partnership with France-based Mediawan, according to Deadline. Financial terms of the deal were not disclosed.
A veteran financier said the deal likely represents a loss of several hundreds of millions of dollars for Candle Media, which paid a $900 million valuation when it took a majority stake in Hello Sunshine in 2021.
A source said a deal to unload Moonbug, the kids entertainment company behind CoComelon, is not imminent but has been actively explored. Candle Media paid nearly $3 billion to acquire Moonbug.
Restructuring and declining valuations in a consolidating market
Candle Media has cut staff and restructured from a buyer of assets to primarily an operator of them. In 2021, Candle Media launched with $2 billion in backing from Blackstone. In January 2022, its deal for a minority stake in Will Smith's Westbrook was announced.
The media industry is bracing for the Paramount-Warner Bros. Discovery merger under Skydance, a backdrop that has weighed on valuations. Netflix and Disney have also tightened spending, according to the Wall Street Journal.
A Candle Media representative declined comment, and Blackstone did not respond to a request for comment.
Quick answers
Who is buying Hello Sunshine?
Reese Witherspoon is buying the company back from Candle Media in partnership with France-based Mediawan.
What did Candle Media pay for Hello Sunshine?
Candle Media paid a $900 million valuation when it took a majority stake in Hello Sunshine in 2021.
Is Candle Media selling Moonbug?
A source said a deal to unload Moonbug is not imminent but has been actively explored.