Hello Sunshine laid off about 50% of its workers on Friday, October 30. Around 30 people were affected.
On October 13, Reese Witherspoon teamed up with French company Mediawan to buy Hello Sunshine back.
The buyback cost a reported low to mid eight figures. That is far below the 2021 value of $900 million.
Blackstone-backed Candle Media bought in at $900 million in 2021. The resale marks a drop of about 94%.
A person close to Candle Media admitted the loss to TheWrap. It was not a great outcome for Blackstone.
Variety reported at least four rounds of layoffs in two years under Candle Media. The kids unit closed in 2023.
Hello Sunshine will focus on movies, TV shows and Reese's Book Club. The direct-to-consumer team is gone.
Reese's Book Club has more than 6.2 million members. It is now a hub for finding film and TV stories.
The studio made Big Little Lies, The Morning Show and Little Fires Everywhere. Those hits stay in the family.
Mediawan runs nearly 100 labels making 450 titles a year. Hello Sunshine joins that group.
Read the full explainer: what happened, why it matters, and what happens next.
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