Reece Witherspoon outfit cost $900m in 2021
Asset management giant Blackstone, backer of US-based Candle Media, is exploring options for Reece Witherspoon’s Hello Sunshine.
The Morning Show producer saw rapid growth that culminated in a $900m (£695.3m) acquisition in 2021 by Candle Media, which also spent $3bn (£2.3bn) on CoComelon owner Moonbug Entertainment, as well as investing in Exile Content Studio in Spain and Faraway Road Productions in Israel.
The deals were struck prior to the 2022 streamer pull-back in spending and the US writers’ strike, however, which has stymied growth over recent years across the sector. The situation has prompted Blackstone and Candle Media execs to consider their options for Hello Sunshine.
Unnamed sources told Reuters, which broke the news, that Candle Media and Blackstone are looking to provide the company with greater potential to scale, with a merging with another studio among ideas considered.
The news agency added that Blackstone is not actively soliciting offers for the company, which produces across most genres and for a raft of platforms.
Its US unscripted catalogue includes Making the Cut for Amazon Prime Video, Get Organised for Netflix and unscripted romantic feature Meet Me In Paris for Roku.
On the scripted side, offerings include Big Little Lies, Little Fires Everywhere and Daisy Jones and the Six for Prime Video.
The firm also opened a UK division in 2022 that has been behind shows such as Bricking It for Channel 4.
Hello Sunshine also operates an in-house social agency named Solar and is behind Reese’s Book Club, operations that have helped the company remain profitable, Reuters said.
The news comes after Blackstone sold Candle Media’s shortform outfit ATTN, and a year since it reorganised operations at Candle Media, creating Candle Studios, run by Hello Sunshine chief exec Sarah Harden, and kids-focused Moonbug Entertainment.
In response to the report, a Candle Media spokesperson said: “While we don’t comment on deal speculation, we regularly explore strategic opportunities to drive growth, maximize value, and remain adaptable in a rapidly evolving industry.”
Consolidation has been a constant across the industry over the past 12 months, as groups look for scale amid market uncertainty. All3Media and ITV Studios are exploring a potential merger, while RTL Group is looking at a merger for its production and distribution giant Fremantle.
Broadcast International also broke news that French giant Federation is exploring its options, while Slow Horses producer See-Saw Films, which Broadcast revealed was for sale late last year, was recently acquired by French group Mediawan.
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