Reese Witherspoon’s Hello Sunshine to Sell for $900 Million to Kevin Mayer and Tom Staggs’s New Media Company
Reese Witherspoon’s production company Hello Sunshine is being sold to a media company recently launched by former Disney executives Kevin Mayer and Tom Staggs, two people with knowledge of the deal confirmed to TheWrap. The price tag is approximately $900 million, the individuals said.
The two companies later confirmed the news, but not the price tag, via a press release.
Mayer’s and Staggs’s new company, which does not yet have a name, has the financial backing of Blackstone. The unnamed company purchasing Hello Sunshine is not Mayer’s and Stagg’s special-purpose acquisition company (SPAC). This is the new company’s first investment.
Witherspoon and Hello Sunshine CEO Sarah Harden will join the board of the new entertainment company and continue to operate Hello Sunshine. They (and other executives) will maintain an ownership stake in Hello Sunshine.
When asked about the sky-high value for a production company, one of the individuals close to the deal told TheWrap they are “feeling quite good” about the $900 million valuation.
“Today marks a tremendous moment for Hello Sunshine. I started this company to change the way all women are seen in media. Over the past few years, we have watched our mission thrive through books, TV, film and social platforms,” Witherspoon said in a statement. “Today, we’re taking a huge step forward by partnering with Blackstone, which will enable us to tell even more entertaining, impactful and illuminating stories about women’s lives globally. I couldn’t be more excited about what this means for our future. I am committed to continuing to create opportunity for filmmakers, authors and creators of all backgrounds and experiences to tell their stories in their own way, and to reach more audiences who will see that their stories matter. This is a unique time in our world where the intersection of art, commerce and media makes it possible for these creators to tell their stories and Hello Sunshine is here to put a spotlight on their amazing creations. I am deeply proud of the team that got us to this incredible moment, and I’m thrilled to be working with Blackstone, Kevin, and Tom to grow a next generation media company. They are committed to helping our mission to empower women and the people who celebrate them. One story at a time.”
“We are thrilled to partner with Reese, Sarah, and the entire Hello Sunshine team,” Mayer and Staggs said in a joint statement. “Hello Sunshine is a perfect fit for our vision of a new, next generation entertainment, technology, and commerce company. We seek to empower creators with innovation, capital, and scale to inspire, entertain, and delight global audiences with engaging content, experiences, and products. Our platform will foster a uniquely creator-friendly culture that gives elite talent the resources they need to create and capitalize on their best, most inventive work. We look forward to backing Reese, Sarah, and their world-class team as they continue to produce and identify dynamic, engaging content for years to come.”
Hello Sunshine is the production company behind HBO’s “Big Little Lies,” Hulu’s “Little Fires Everywhere” and Apple TV+ series “The Morning Show.” Witherspoon starred on all three of those shows. Hello Sunshine is also the home to Reese’s Book Club.
One of the Reese’s Book Club selections, “Where the Crawdads Sing,” is being adapted by Hello Sunshine into a 3000 Pictures/Sony movie.
The Wall Street Journal first reported the news of the Hello Sunshine sale. Last month, WSJ reported Hello Sunshine could sell for as much as $1 billion. Apple was among the companies said to be interested.
Other production companies led by stars, including LeBron James’s SpringHill, could be next in line. Bloomberg reported last month that Nike and others are looking at the basketball superstar’s production company at around a $750 million price tag.
Hello Sunshine was founded in 2016 as part of a joint venture with AT&T, which holds a minority stake through its ownership of Otter Media. Along with Witherspoon, Hello Sunshine’s owners include Seth Rodsky and Jim Toth, a former CAA agent who is Witherspoon’s husband.
The Hello Sunshine sale is subject to regulatory approval and customary closing conditions.
Sharon Waxman contributed reporting to this story.
