A new media company backed by Blackstone Group is confirmed as the buyer of film production studio Hello Sunshine which was established by Reese Witherspoon and partners. The consideration is thought to be around $900m. Hello Sunshine was founded in 2016 to focus on female-led storytelling. Witherspoon and Hello Sunshine CEO Sarah Harden will remain shareholders in the company.
So far so good, but look at what The Information has to say about the deal: “Hello Sunshine, maker of dramas such as “The Morning Show” for Apple TV+ and “Little Fires Everywhere” on Hulu, generated just $65 million in revenue last year, a figure that is expected to double to around $125 million this year. That means Blackstone and its partners are paying about 7.2 times this year’s projected revenue to buy the firm. That’s a big premium over where publicly traded entertainment companies, such as Lionsgate Entertainment and ViacomCBS, are trading”.
