Hello Sunshine, a media company owned by actress Reese Witherspoon, is to be sold to a venture firm backed by Blackstone Group (NYSE: BX). The move is part of an initiative geared towards building an independent entertainment company for Hollywood’s streaming age. Financial details regarding the deal have yet to be disclosed, though a person familiar with the matter valued the company at USD900 Million.
The firm, backed by Blackstone, will be led by entertainment executives Kevin Mayer and Tom Staggs, with Hello Sunshine as its first purchase. Nevertheless, Ms. Whitherspoon along with Hello Sunshine chief Executive Sarah Harden are set to join the new company’s board and will continue to run Hello Sunshine.
“Our platform will foster a uniquely creator-friendly culture that gives elite talent the resources they need to create and capitalize on their best, most inventive work. We look forward to backing Reese, Sarah, and their world-class team as they continue to produce and identify dynamic, engaging content for years to come,” Mayer and Staggs said in a release.
According to The Wall Street Journal, Blackstone is spending USD500 Million to purchase shares from existing Hello Sunshine investors such as AT&T and Emerson Collective. However, Witherspoon and several other Hello Sunshine executives and investors are set to keep ownership stakes within the new company.
“Today, we’re taking a huge step forward by partnering with Blackstone, which will enable us to tell even more entertaining, impactful and illuminating stories about women’s lives globally. I couldn’t be more excited about what this means for our future,” Witherspoon said in a release.