US Blackstone Acquires Witherspoon Company for $500 Million

(Photo by WSJ)

[Asia Economy Reporter Yujin Cho] The world's largest private equity firm, US-based Blackstone, has agreed to acquire the media company 'Hello Sunshine,' founded by famous Hollywood actress Reese Witherspoon, the Wall Street Journal (WSJ) reported on the 2nd (local time).

The purchase price is $500 million (approximately 575.5 billion KRW), planned to be paid entirely in cash. Specific contract terms have not been disclosed, and during the acquisition process, Hello Sunshine was valued at $900 million (approximately 1.04 trillion KRW).

Previously entering the media industry, Blackstone plans to launch an online video service (OTT) subsidiary led by Kevin Mayer and Tom Stagg, both former executives at Walt Disney.

Hello Sunshine is the first media company acquired by Blackstone ahead of the launch of its OTT subsidiary.

According to WSJ, Mayer and Stagg are exploring additional acquisitions of content companies capable of competing with existing OTT giants like Netflix.

Witherspoon is expected to retain some equity after the sale and will also be named on the new company's board of directors.

Hello Sunshine was established in 2016 by Witherspoon and American financier Seth Rodsky, producing content such as dramas and films targeting female viewers.

Its notable works include supplying 'Big Little Lies' and 'The Morning Show,' featuring Witherspoon, to HBO, Hulu, and Apple TV. In 2018, it also expanded into cable and satellite broadcasting under the name 'Hello Sunshine Channel.'

WSJ, citing sources, forecasted that the company will turn profitable for the first time this year through new content in children's channels and animation sectors.

Witherspoon, who gained worldwide fame through the 2001 comedy film 'Legally Blonde,' won the Academy Award for Best Actress in 2006 for the movie 'Walk the Line,' which depicted the life of country singer Johnny Cash.