Candle Media, the private-equity-backed corporate that has invested in corporations based by way of Hollywood stars similar to Reese Witherspoon, has settled on its newest goal: Exile Content material Studio, a manufacturer of Spanish-language movies, TV displays and podcasts.
Candle Media, which is administered by way of Kevin Mayer and Tom Staggs, former senior executives on the Walt Disney Corporate, mentioned on Monday that it used to be obtaining Exile in a cash-and-stock deal. Exile’s control group, which incorporates its founder and leader government, Isaac Lee, will sign up for Candle Media.
Executives from Candle Media and Exile declined to divulge the cost of the deal. The mixed price of Candle Media’s offers, that are bankrolled by way of the personal fairness company Blackstone, up to now overall round $4 billion, in keeping with an individual with wisdom of the industry who spoke at the situation of anonymity as a result of he used to be no longer licensed to speak about the deal.
In an interview, Mr. Staggs mentioned he and Mr. Mayer had zeroed in on Exile since the corporate would lend a hand Candle Media succeed in the rising target market of Spanish audio system, which he mentioned numbered greater than 550 million globally. He mentioned the corporate’s breadth of content material — throughout streaming, conventional tv, podcasts and song — used to be additionally a promoting level.
“We predict it might open up new alternatives for us with creators that we would no longer another way succeed in,” Mr. Staggs mentioned.
Based in 2019, Exile produces TV displays and movies with streaming services and products and TV networks. Its productions come with a scripted sequence for Netflix with Diego Luna, a “Rogue One” celebrity, as a showrunner; the kids’s display “Membership Mundo Children” for Amazon High; and a docuseries at the Spanish football group Actual Madrid for HBO.
In an interview, Mr. Lee mentioned he had already begun running with Moonbug Leisure, the Candle Media corporate that owns the preferred youngsters’s TV display “CoComelon,” to vet concepts for displays he deliberate to introduce. Exile could also be running with Hi Sunshine, the media corporate based by way of Ms. Witherspoon and bought by way of Candle Media, on an as-yet-unannounced mission.
“Integrations normally are very bulky and tough,” Mr. Lee mentioned. “On this case, they’re natural, herbal, they usually paintings extremely smartly.”
Candle Media and Exile started speaking a couple of deal final fall. In November, they reached an settlement at the vast strokes of a buyout, however it didn’t come to fruition for a number of months as a result of Candle Media used to be busy scouting and executing different offers.
Candle Media is probably the most outstanding participant within the private-equity growth that has swept Hollywood in fresh months as buyers search to coins in at the rising call for for streaming content material. Mr. Mayer and Mr. Staggs are having a bet that highbrow assets — the root for primary film franchises, TV displays and books — will grow to be best extra precious as audiences shift to streaming video and enhance creators by way of buying products and virtual items together with NFTs, or nonfungible tokens.
Candle Media may just promote or pass public in a question of years. Non-public fairness corporations typically search to recoup their investments over a duration of a number of years, both via a public providing or by way of promoting to any other corporate in the similar sector.
Along with its obtaining Moonbug and Hi Sunshine, Candle Media has bought a stake in Westbrook, an organization based by way of Will and Jada Pinkett Smith. It has additionally got ATTN:, a media corporate that produces short-form leisure and information content material.
The deal is a reunion of varieties for Mr. Mayer and Mr. Lee, who in 2013 — when Mr. Mayer used to be at Disney and Mr. Lee used to be an government at Univision — collectively introduced a cable channel known as Fusion geared toward English-speaking Latinos. The channel used to be a part of an bold however ill-fated technique orchestrated by way of Mr. Lee to offer Univision a foothold amongst more youthful audiences.
“The only vivid mild there used to be getting to grasp him and dealing with him and working out his philosophy,” Mr. Mayer mentioned.