Candle Media Sells Its Majority Stake in Hello Sunshine

Candle Media sold its majority stake in Hello Sunshine, the production company founded by Reese Witherspoon, who is buying it back with France-based Mediawan.

The financial terms have not been disclosed, but a financier familiar with the deal estimated that Candle may have lost several hundred million dollars.

Candle bought its stake in 2021 at a $900 million valuation, which was considered high for a company with limited output and no profits.

The sale comes as streaming companies and podcast platforms cut spending, while higher interest rates make borrowing more expensive for private-equity-backed firms.

Candle has cut staff and shifted toward operating its companies rather than mainly buying assets.

Its main remaining asset is Moonbug, which makes CoComelon and is in better financial shape than many peers, but Candle paid nearly $3 billion for it.

A sale of Moonbug has been explored but is not imminent, according to a person familiar with the company’s strategy.