In today’s age of streaming content, companies from all sects of entertainment are more than willing to spend millions upon billions to obtain intellectual properties and production houses.
Backed by private equity firm Blackstone, the still-unnamed media company of Tom Staggs and Kevin Mayers has made its second acquisition to date. The duo of former Disney executives recently purchased children’s entertainment company Moonbug Entertainment Ltd. Moonbug produces highly acclaimed shows for young audiences like CoComelon and Blippi.
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While official numbers have yet to be disclosed to the public, it’s said that the acquisition cost the pair around $3 billion.
Per Business Wire, Moonbug’s founders René Rechtman and John Robson will retain an equity stake in Mayer and Staggs’ company alongside existing management and shareholders. Moonbug’s shows are streamed and aired on over 100 different platforms. Its kid-friendly content has been translated into 27 different languages. Currently, the CoComelon YouTube channel has the second-largest amount of substitutions on the platform.
“John and I have built a category-leading, digital-first kids entertainment business based on strong values and content that is focused on digital platforms. Our vision is to build global family franchises, which is wholly aligned with Kevin and Tom’s vision and experience,” says Robson, “I have had the pleasure of working with them both earlier in my career and am thrilled to be reunited to build the next global powerhouse of entertainment. You could not find stronger partners in our industry.”
Previously, Mayer and Staggs spent $900 million to acquire Reese Witherspoon’s production company, Hello Sunshine. The deal included similar agreements as this most recent acquisition, with Witherspoon maintaining a level of control with the company’s ventures and having a seat in board meetings.
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“We have known René and his innovative team for years, including during our time together at Disney, and they have built a perfect example of the type of category-defining business we are looking to bring into our company. They know how to identify and support brands that are beloved by millions of families across the globe,” the former Disney duo expresses, “We and our partners at Blackstone look forward to helping expand Moonbug’s portfolio of titles and further extend its franchises across digital platforms and key licensing and merchandising channels.”
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Sources: Bloomberg, Business Wire, Hollywood Reporter
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