Candle Media, the private equity-backed company that has invested in companies founded by Hollywood stars like Reese Witherspoon, has picked its latest target: Exile Content Studio, a producer of Spanish-language films, TV shows and podcasts.
Candle Media, which is led by Kevin Mayer and Tom Staggs, former senior executives of the Walt Disney Company, said Monday it was acquiring Exile in a cash-and-stock deal. Exile’s management team, which includes founder and chief executive, Isaac Lee, will join Candle Media.
Candle Media and Exile executives declined to disclose the price of the deal. The combined value of Candle Media’s deals, which are being funded by the private equity firm Blackstone, is about $4 billion to date, according to a person with knowledge of the company who spoke on condition of anonymity because he was not authorized. was to discuss the deal.
In an interview, Mr. Staggs that he and Mr. Mayer had focused on Exile because the company would help Candle Media reach the growing audience of Hispanic speakers, which he said numbered more than 550 million worldwide. He said the size of the company’s content — via streaming, traditional television, podcasts and music — was also a selling point.
“We think it can open up new opportunities for us with creators that we might not otherwise reach,” said Mr Staggs.
Founded in 2019, Exile produces TV shows and movies with streaming services and TV networks. Productions include a scripted series for Netflix with “Rogue One” star Diego Luna as showrunner; the children’s show “Club Mundo Kids” for Amazon Prime; and a docuseries about the Spanish soccer team Real Madrid for HBO.
In an interview, Mr. Lee said he had already started working with Moonbug Entertainment, the Candle Media company that owns the hit children’s TV show “CoComelon,” to explore ideas for shows he planned to introduce. Exile is also collaborating with Hello Sunshine, the media company founded by Mrs. Witherspoon and bought by Candle Media, on an unannounced project.
“Integrations in general are very cumbersome and difficult,” said Mr. Lee. “In this case, they’re organic, natural, and they work incredibly well.”
Candle Media and Exile started talking about a deal last fall. In November, they reached an agreement on the broad outline of a buyout, but it only came about a few months after Candle Media was busy scouting and executing other deals.
Candle Media is the most prominent player in the private equity boom that has plagued Hollywood in recent months as investors try to capitalize on the growing demand for streaming content. Mr. Mayer and Mr. Staggs are betting that intellectual property — the foundation for major movie franchises, TV shows and books — will only grow in value as audiences shift to streaming video and support creators by purchasing merchandise and digital goods, including NFTs, or non-replaceable Coins.
Candle Media could sell or go public within a few years. Private equity firms usually try to recoup their investments over a period of several years, either through a public offering or by selling them to another company in the same industry.
In addition to acquiring Moonbug and Hello Sunshine, Candle Media has acquired a stake in Westbrook, a company founded by Will and Jada Pinkett Smith. It also acquired ATTN:, a media company that produces short entertainment and news content.
The deal is sort of a reunion for Mr. Mayer and Mr. Lee, who in 2013 – then Mr. Mayer worked at Disney and Mr. Lee executive at Univision – co-launched a cable channel called Fusion, aimed at English-speaking Latinos. † The channel was part of an ambitious but ill-fated strategy by Mr. Lee was orchestrated to give Univision a foothold with a younger audience.
“The only bright light was getting to know him and working with him and understanding his philosophy,” said Mr. mayer.
