Reese Witherspoon is taking Hello Sunshine back from Candle Media at a startling discount from its jaw-dropping $900 million valuation from just five years ago.
The actress and producer partnered with Mediawan to acquire a majority stake in the startup for “low- to mid-eight figures,” according to a person familiar with the deal. At even $50 million, this would represent a 94% drop from the original valuation, although the terms of the latest deal may not fully correlate to the valuation. Either way, it’s a black eye for Candle Media
The stunning drop underscores the risk of betting on celebrities to drive massive enterprises on the strength of their personality and will — something that you see more often with creators these days but remains rare for Hollywood’s elite. Candle Media had hoped the platform and its followers would be a good market for merchandise and other direct-to-consumer revenue streams.
“We were just wrong,” said an individual close to Candle Media.
For Witherspoon, she joins a long list of founders who have taken back control of their business in a bid to revitalize it. She brought along partners to help with her initiative.
“Mediawan has built a global, independent studio by putting creators first. That has always been my vision for Hello Sunshine,” said Witherspoon. “I’m investing alongside Mediawan and joining Pierre-Antoine Capton and his teams because this is the perfect home for this new media landscape. It’s also a homecoming. Peter Chernin and Jesse Jacobs believed in Hello Sunshine from day one. I’m deeply proud of what our incredible team has built, and grateful to Blackstone and Candle Media for their partnership and unwavering support. The best is still ahead.”
Hello Sunshine co-founder Seth Rodsky will join as a director alongside Witherspoon and representatives from Mediawan following the acquisition.
Moelis & Company served as financial advisor to Candle Media. Candle Media and Hello Sunshine were represented by Kirkland & Ellis. Witherspoon was represented by Latham & Watkins. Mediawan was represented by Gibson Dunn.
The Mediawan partnership puts Hello Sunshine among its lineup of global creative companies, giving it access to international formats to mine for future programming.
For Mediawan, the acquisition is part of a broader strategy to build a platform for creative talent by bringing independent production companies under one roof while preserving the creative independence and distinct identities that make them successful. Hello Sunshine joins a growing Mediawan ecosystem that includes Chernin Entertainment, Plan B Entertainment, See-Saw Films, Kinetic Content, Wiedemann & Berg, Palomar, Our Films, Drama Republic, Chapter2, Chi-Fou-Mi and other leading production companies across the U.S., U.K., Europe and beyond.
The combined group is behind globally successful and award-winning titles such as “Adolescence,” “Backrooms,” “F1,” “Slow Horses,” “Call My Agent!,” “Apex,” “Miraculous,” “Love Is Blind,” “New Girl,” “The Greatest Showman” and the “Planet of the Apes” franchise.
Hello Sunshine’s acquisition adds one of the industry’s most distinctive female-forward creative brands to the ecosystem, with a proven track record in premium entertainment, and Reese’s Book Club, which will continue to play a key role with its direct relationship to millions of highly engaged fans and its pipeline of IP. Prominent titles produced by Hello Sunshine include Prime Video’s “Elle,” Apple TV’s “Lucky” and “The Morning Show.”
“Mediawan has thrived by bringing together the best creative companies and giving them the resources, scale and independence to tell great stories,” said Pierre-Antoine Capton, co-founder and CEO of Mediawan Group. “Led by a generational talent in Reese, Hello Sunshine has an extraordinary track record of telling premium stories through film and TV and forming strong connections with audiences through Reese’s Book Club. Bringing these creative brands together, giving producers access to a broader pool of talent, IP and resources, while preserving their independence is what differentiates Mediawan. It strengthens what we can offer both talent and buyers, and Hello Sunshine brings a distinctive creative identity and a direct audience relationship that makes the whole group stronger.”
“Reese and her team have built Hello Sunshine into the premier company for women’s storytelling, which makes it a powerful addition to Mediawan’s unparalleled portfolio,” said Peter Chernin, board member of Mediawan, and Scott Manson, CEO of Mediawan in North America. “We see a tremendous opportunity to pair Reese and her team’s creative vision with Mediawan’s deep understanding of talent and global reach.”
Hello Sunshine was founded in 2016 with backing from Chernin and Jesse Jacobs through The Chernin Group.
