Maddie James
Candle Media is an American media company based in Los Angeles, co-founded and co-led by former Disney executives Kevin Mayer and Thomas O. Staggs. The company is financially supported by investment firm Blackstone Inc. and owns companies such as Moonbug Entertainment, Hello Sunshine, and Faraway Road Productions. In recent years, Candle Media has spent approximately $4 billion on acquisition deals, including the purchase of Westbrook Inc., ATTN:, and Exile Content Studio. The company has also entered into strategic partnerships with TikTok and Cameo to develop premium content. Despite its success, Candle Media has faced challenges due to high acquisition costs and debt, leading to cost-cutting measures and reorganization.
| Characteristics | Values |
|---|---|
| Co-founders | Kevin A. Mayer and Thomas O. Staggs |
| Current Co-CEOs | Kevin Mayer and Tom Staggs |
| Company Division | Candle Studios (live-action content) and Moonbug (animation) |
| Leaders of the two divisions | Sarah Harden (Candle Studios) and N/A (Moonbug) |
| Financial supporters | Blackstone Inc. |
| Recent acquisitions | ATTN:, Exile Content Studio |
| Recent partnerships | TikTok |
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Kevin Mayer and Tom Staggs co-founded Candle Media
Mayer and Staggs are both former top executives at The Walt Disney Company. Mayer oversaw Disney's international direct-to-consumer business, which included the launch of global streaming platforms Disney+, ESPN+, and Hulu. He also served as CEO of TikTok and COO of its parent company, ByteDance. Staggs, meanwhile, served as Disney's Chief Operating Officer, chairman of Walt Disney Parks and Resorts Worldwide, and Chief Financial Officer for nearly 12 years.
Prior to founding Candle Media, Mayer and Staggs led the blank-check company Forest Road Acquisition Corp. In August 2021, Candle Media began acquiring content companies, starting with Reese Witherspoon's Hello Sunshine. This was followed by the acquisition of Moonbug Entertainment, the children's entertainment company behind shows like CoComelon and Blippi, in November 2021.
Since its founding, Candle Media has continued to make strategic acquisitions and investments, including a minority investment in Will Smith and Jada Pinkett Smith's Westbrook and the acquisition of Faraway Road Productions, ATTN:, and Exile Content Studio. In June 2023, the company entered into a partnership with TikTok to develop premium content, including film, television, and audio productions based on works by authors in the BookTok community.
In 2024, Candle Media reorganized into two divisions: Candle Studios, led by Sarah Harden, which focuses on live-action content, and Moonbug, which houses animation content. The reorganization was done to cut costs, consolidate back offices, and better monetize big-ticket acquisitions. Despite the changes and challenges in the streaming sector, Mayer expressed confidence in Candle Media's future, stating, "Talk to us in two or three years."
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Candle Media's costly acquisitions
Candle Media, the American media company based in Los Angeles, has been on an acquisition spree since its founding in 2021. The company, co-founded by former Disney executives Kevin Mayer and Thomas Staggs, has spent approximately $4 billion on acquisition deals as of 2023.
Candle Media's first acquisition was Reese Witherspoon's Hello Sunshine, which it bought in August 2021. The company then acquired Moonbug Entertainment, a children's entertainment company that produces shows like CoComelon and Blippi, for nearly $3 billion in November 2021. In January 2022, Candle Media acquired Faraway Road Productions, the production company behind the Israeli thriller series Fauda, for an estimated $50 million. The same month, the company also announced a minority investment in Will Smith and Jada Pinkett Smith's Westbrook, taking a stake of over 10%.
In May 2022, Candle Media acquired ATTN: a media company that produces short-form news and topical entertainment content aimed at Gen Z and millennial audiences, for $100 million. The company also announced its intention to acquire Exile Content Studio, a Spanish production studio, in the same month.
Candle Media's acquisitions have been described as "star-studded and very expensive." The company has paid high prices for its deals, assuming that the "streaming hype cycle" would continue. However, in 2024, the company began cutting costs, reorganizing, and reworking its debt. Despite the high prices paid, Moonbug Entertainment has been credited with "single-handedly" saving the company, as properties like CoComelon make Candle Media a powerhouse in children's media.
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The company's reorganisation and cost-cutting
Candle Media, the American media company based in Los Angeles, has been undergoing a period of reorganisation and cost-cutting since 2024. The company, which was founded in 2021 by former Disney executives Kevin Mayer and Thomas O. Staggs, is backed by investment firm Blackstone Inc. and has made several high-profile acquisitions, including Reese Witherspoon's Hello Sunshine and Moonbug Entertainment, the producer of CoComelon.
The reorganisation comes as a response to broader changes in the streaming sector, as well as the impact of the Hollywood strikes, which frozen production for many studios, and the escalating costs of its debt, which is held by some of Wall Street's biggest lenders. The company has also faced questions from the industry about its strategy and the high prices it paid for its deals.
As part of the reorganisation, Candle Media has restructured its operations, dividing into two divisions: animation and live-action content businesses. The animated series will be folded into the company's children's media company, Moonbug Entertainment, while a second division, Candle Studios, will encompass live-action content. The live-action division will be led by Sarah Harden, the CEO of Hello Sunshine, who will retain her title at Witherspoon's company.
The new studios division will share back-end operations with Candle Media, including business affairs, legal affairs, production services, facilities, and equipment. It will also coordinate its sales and distribution efforts to target domestic and international buyers. The reorganisation is not a prelude to a sale, according to the company executives, but rather an effort to cut costs and consolidate back offices to save money.
In addition to the reorganisation, Candle Media has also been working to monetise its big-ticket acquisitions and develop new avenues for growth. The company has also formed a strategic partnership with TikTok, where Mayer previously served as CEO, to develop premium content, including film, television, and audio productions based on works by authors in the BookTok community.
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Moonbug Entertainment acquisition
Candle Media, an American media company based in Los Angeles, is financially supported by the investment firm Blackstone Inc. and was co-founded by former Disney executives Kevin A. Mayer and Thomas O. Staggs. In November 2021, Candle Media acquired Moonbug Entertainment, a children's entertainment company that has produced popular shows like CoComelon and Blippi. The acquisition deal was valued at nearly $3 billion.
Moonbug Entertainment, formerly a film and television company founded in 1992, has become a valuable asset for Candle Media. Its properties, including CoComelon, have solidified Candle Media's position in children's media and provided a strong presence on YouTube and streaming platforms. This acquisition has been particularly significant for Candle Media, with Moonbug described as having "almost single-handedly saved it" amidst a challenging financial period for the company.
Following the acquisition, Candle Media reorganised its structure in 2024, consolidating its animation business under Moonbug Entertainment while placing its live-action projects under the rebranded Candle Studios, led by Sarah Harden, formerly of Reese Witherspoon's Hello Sunshine label. This reorganisation was part of a broader effort to cut costs and streamline operations, as Candle Media had paid high prices for its acquisitions during the peak of the streaming hype cycle.
Despite the challenges, Candle Media continues to forge strategic partnerships, such as its collaboration with TikTok, where Mayer previously served as CEO. The partnership involves developing film, television, and audio productions based on works by authors in the BookTok community.
Overall, the acquisition of Moonbug Entertainment by Candle Media has had a significant impact on the company's direction and strategy, allowing it to establish a strong foothold in the children's media space.
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Blackstone's backing of Candle Media
Blackstone's investment capital fuelled Candle Media's rapid expansion and entry into the competitive streaming landscape. The company spent approximately $4 billion on acquisition deals, including high-profile purchases such as Reese Witherspoon's Hello Sunshine, Moonbug Entertainment, and stakes in Will and Jada Pinkett Smith's Westbrook Inc. These acquisitions positioned Candle Media as a powerhouse in children's media, leveraging popular shows like CoComelon and Blippi.
However, the high prices paid during the peak of the streaming hype cycle led to escalating debt for Candle Media. By the end of 2023, the company's debt was estimated at $1 billion, impacting its profitability. As a result, in 2024, Candle Media announced cost-cutting measures and reorganisation. Despite the challenges, Mayer expressed optimism, stating, "Talk to us in two or three years."
The reorganisation involved restructuring its operations and consolidating production businesses into two verticals: live-action production, led by Sarah Harden, CEO of Hello Sunshine; and animation, housed solely within Candle's profitable Moonbug label. This strategic shift aimed to enhance collaboration, drive synergies, and better monetise big-ticket acquisitions.
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Frequently asked questions
Candle Media is owned by former Disney executives Kevin A. Mayer and Thomas O. Staggs, who are also the co-founders and co-CEOs.
Candle Media is a media company that acquires other media companies. It has spent approximately $4 billion on acquisition deals to date.
Candle Media is financially supported by the private equity investment firm Blackstone Inc.
