Candle Media, the private-equity-backed corporate that has invested in corporations based through Hollywood stars akin to Reese Witherspoon, has settled on its newest goal: Exile Content material Studio, a manufacturer of Spanish-language motion pictures, TV presentations and podcasts.
Candle Media, which is administered through Kevin Mayer and Tom Staggs, former senior executives on the Walt Disney Corporate, mentioned on Monday that it was once obtaining Exile in a cash-and-stock deal. Exile’s control crew, which contains its founder and leader government, Isaac Lee, will sign up for Candle Media.
Executives from Candle Media and Exile declined to expose the cost of the deal. The mixed worth of Candle Media’s offers, that are bankrolled through the non-public fairness company Blackstone, thus far general round $4 billion, in line with an individual with wisdom of the trade who spoke at the situation of anonymity as a result of he was once no longer licensed to talk about the deal.
In an interview, Mr. Staggs mentioned he and Mr. Mayer had zeroed in on Exile for the reason that corporate would lend a hand Candle Media succeed in the rising target audience 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 tune — was once additionally a promoting level.
“We expect it will possibly open up new alternatives for us with creators that we’d no longer another way succeed in,” Mr. Staggs mentioned.
Based in 2019, Exile produces TV presentations and movies with streaming services and products and TV networks. Its productions come with a scripted collection for Netflix with Diego Luna, a “Rogue One” superstar, as a showrunner; the youngsters’s display “Membership Mundo Children” for Amazon High; and a docuseries at the Spanish football crew Actual Madrid for HBO.
In an interview, Mr. Lee mentioned he had already begun operating with Moonbug Leisure, the Candle Media corporate that owns the preferred kids’s TV display “CoComelon,” to vet concepts for presentations he deliberate to introduce. Exile may be operating with Hi Sunshine, the media corporate based through Ms. Witherspoon and bought through Candle Media, on an as-yet-unannounced mission.
“Integrations on the whole are very bulky and hard,” 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 was once 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 main film franchises, TV presentations and books — will change into best extra precious as audiences shift to streaming video and enhance creators through buying products and virtual items together with NFTs, or nonfungible tokens.
Candle Media may just promote or cross public in a question of years. Personal fairness corporations typically search to recoup their investments over a length of a number of years, both via a public providing or through 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 through Will and Jada Pinkett Smith. It has additionally received 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 was once at Disney and Mr. Lee was once an government at Univision — collectively introduced a cable channel known as Fusion aimed toward English-speaking Latinos. The channel was once a part of an formidable however ill-fated technique orchestrated through Mr. Lee to present Univision a foothold amongst more youthful audiences.
“The only vibrant mild there was once getting to grasp him and dealing with him and figuring out his philosophy,” Mr. Mayer mentioned.