Just a few weeks ago, a Blackstone-backed media vehicle acquired Reese Witherspoon's Hello Sunshine for $900 million. Before that, Amazon acquired MGM for $8.5 billion. The list of studio M&A deals and rumors is a long one, with buyers ranging from streaming platforms and traditional media to CPG and blue chip private equity firms.

In this episode, Chris and Andrew discuss the recent high-priced M&A, media valuations on a standalone VS streamer-integrated basis, private equity's perceived market timing, where the next big talent deals may happen, and new content buyers like FAST platforms, Apple, and Nike.

(and apologies, we had a technical snafu so the recording quality is a bit subpar)

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EPISODE TRANSCRIPT:

Chris Erwin:

So Andrew, I've been reading a lot of headlines lately about all of the capital investment and M&A of different production and media companies. It actually reminds me of when I first got into the digital space back in 2012, 2013. But we'll talk about that parallel a little bit later on. There's a few deals, I think, worth highlighting, but are you reading the same headlines that I am?

Andrew Cohen:

Yeah, it's crazy. We've seen a bunch of acquisitions, investments, and then even a lot of rumored ones and the numbers are eye-popping. So it's...

Chris Erwin:

Let's go through a few of these deals. As always, there's a laundry list. But most recently, Hello Sunshine was acquired for $900 million by a Blackstone-backed media venture. And of note, that venture, I think, has Kevin Mayer and Tom Staggs, they're helping to spearhead it. We saw Amazon acquire MGM for around $8.5 billion, and it's actually, I think 28 times EBITDA, wild. A24, supposedly rumored to be exploring a sale for around $3 billion. Also SpringHill, spearheaded by famed athlete LeBron James, seeking a sale for around three-quarters of a million. And the list goes on. You got Imagine with Ron Howard and Brian Grazer, Legendary Entertainment, Lionsgate Spyglass, et cetera. Any other big deals I'm missing?

Andrew Cohen:

I'm sure there are. Especially if you span back over the past year or two, seeing things like Crunchyroll being acquired by Sony for almost $2 billion. STX sold for almost $1 billion last year, and there's a lot more. We're seeing these every week and it's definitely made me sit back and wonder why.

Chris Erwin:

Quick clarification. Was STX sold or they've just raise...

Hello Sunshine Sells for $900M and High-Priced Studio M&A

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