Candle Media Restructures, Folding Animation Into Moonbug As Hello Sunshine Chief Sarah Harden Takes Over Rebranded Studio

Blackstone-backed “next generation” entertainment group Candle Media is tightening belts amid the streaming downturn, enacting a series of cost-cutting measures and reorganization of its acquisitions. The outfit will split into two divisions, folding its animation business into CoComelon studio Moonbug (which Candle acquired in November 2021 for nearly $3 billion), while live-action projects are collected under the rebranded Candle Studios.

Sarah Harden, formerly chief of Reese Witherspoon’s Hello Sunshine label (acquired by Candle in August 2021 for $900 million), will head the live-action division rebranded as Candle Studios (also including prodcos Exile, True Stories and Faraway Road). The parent company, established in 2021 by Disney alums Kevin Mayer and Tom Staggs with a $1 billion investment from Blackstone, dissolved Hello Sunshine’s animation division into Moonbug last year.

Candle set up to fill demands of streamers as major studios began damming up their content to reserve for their own platforms, paying hefty sums to acquire popular brands. In an interview with Semafor Tuesday, Mayer said that this angle on approaching streaming buyers was “the one thesis that is holding true, though it’s fraying around the edges slightly.” The co-CEO agreed that Candle had paid “at the top of the market” for its acquisitions. “Have the financials borne out the way we would like, to have to support the prices that we paid? Probably not,” he admitted, adding optimistically, “Talk to us in two or three years.”

A Blackstone spokesperson also told Semafor that one of the biggest impacts on Candle’s financial state were the dual Hollywood strikes by SAG and WGA last year. The company also carries about $1.4 billion in debt, which at 12% is consuming most of its earnings. “We continue to be optimistic about [Candle’s] prospects coming out of the work stoppages and look forward to supporting its growth,” the investor rep noted.

Semafor‘s Ben Smith points out, “Moonbug has almost single-handedly saved [Candle Media]. Despite a drumbeat of questions from the industry about the company’s strategy, properties including CoComelon make Candle a powerhouse in children’s media, a great business on YouTube, and has a solid foothold in streaming.”

Paramount Global Has Applied For A New Trademark Based On SpongeBob SquarePants Called Bikini Bottom News

Paramount, under Viacom International Inc., has applied to register Bikini Bottom News under NICE Class "41 - Education, entertainment, sporting and cultural services", for "Entertainment services, namely, providing a multimedia video segment and online content in the nature of non-downloadable videos". The request was filed on June 25, 2024, and is currently pending approval.

Bikini Bottom News takes it name from the Bikini Bottom News news channel featured in the SpongeBob Universe, which reports events happening in and around Bikini Bottom, with the Realistic Fish Head and Perch Perkins serving as the network's main reporters.

As the name and description suggest, Bikini Bottom News is most likely a SpongeBob SquarePants-themed digital series. Although a launch date has yet to be announced, Bikini Bottom News will most likely form part of Nickelodeon's celebrations to commemorate the 25th anniversary of SpongeBob SquarePants.

Source: NickALive

Paramount And Skydance Are Said To Reach A Deal To Merge

Just weeks after Paramount’s controlling shareholder and Skydance abruptly ended merger talks, the two sides have reached a preliminary deal to create a new Hollywood giant, four people familiar with the negotiations said Tuesday.

The agreement will still have to be approved by a special committee of Paramount’s board of directors, said the people, who spoke on the condition of anonymity as talks resumed.

Paramount — the parent company of CBS, MTV and Nickelodeon — and Skydance, the up-and-coming movie studio that helped produce “Top Gun: Maverick,” called off talks in June just before a scheduled vote on a merger. While the two sides had agreed on economic terms, Shari Redstone, Paramount’s controlling shareholder through its parent company, National Amusements, had clashed with Skydance in the final weeks of negotiations.

But the two sides have continued to talk, and now the Paramount board committee will evaluate whether new terms will be sufficiently palatable for shareholders, some of whom pushed back significantly against the last proposed deal. One likely point of focus will be the extent of protection offered to National Amusements in event of shareholder lawsuits.

In this latest deal, National Amusements’ equity would be valued at $1.75 billion, up slightly from $1.7 billion in the transaction’s last incarnation, three of the people said.

Paramount Global Is In Exclusive Talks To Sell BET For $1.6 Billion

Paramount Global is in exclusive talks to sell its Black Entertainment Television network to buyers that include BET Chief Executive Officer Scott Mills and Chinh Chu, who runs the New York-based private equity firm CC Capital.

The group has been discussing an offer of $1.6 billion to $1.7 billion, people familiar with the matter said, asking not to be named revealing information that’s not public. 

Last year, the same group had discussed an offer of a little under $2 billion, Bloomberg reported in December. Chu and Mills are rekindling discussions with Paramount for BET after Shari Redstone, who has a controlling stake in Paramount, walked away from a proposed merger with Skydance Media, the company led by David Ellison. 

Representatives for Paramount and Chu declined to comment. Mills didn’t respond to a request for comment. The shares jumped on the news and were up 4.2% to $10.56 at 2:28 p.m. in New York.

Paramount, which owns CBS, MTV and other networks, had also previously received an offer from media mogul Byron Allen, who put together a $3.5 billion bid last year for both BET and the VH1 channel, and emphasized that BET should be Black-owned. Actor and filmmaker Tyler Perry, who is an investor in the BET+ streaming service, also held discussions about purchasing a stake in the larger enterprise.

The sale process last year was “disrespectful,” Perry said at a Bloomberg event last year. “Don’t try to get me to pay for something that’s not worth anywhere near the value” Paramount said it was, he said at the time.

Founded in 1980 by businessman Robert L. Johnson, BET was sold to Paramount’s predecessor, Viacom, in 2001 for about $3 billion. The network has strong ties to some of the most successful Black entertainment creators, including Perry, Kenya Barris and Rashida Jones, who are investors in the BET Studios production company.

Paramount has said it’s working to cut $500 million in costs to boost profitability. 

Barry Diller's IAC Is Exploring A Bid To Take Control of Paramount Global

Media mogul Barry Diller is taking a look at acquiring National Amusements Inc., the company owned by Shari Redstone and the controlling shareholder of Paramount, CNBC reported on Tuesday.

Diller's IAC, an internet media and publishing company, has signed a nondisclosure agreement and is looking in the data room of National Amusements, Faber said Tuesday. IAC could make a decision in the near term to place a bid on National Amusements, which would give it a controlling stake in Paramount, he said, citing sources.

These discussions come weeks after National Amusements stopped talks with Skydance on a proposed merger with Paramount.

Following months of deal talks with a consortium that included David Ellison's Skydance and private equity firms RedBird Capital and KKR, the deal was called off as it awaited signoff from Redstone. National Amusements, which Redstone controls, holds 77% of class A Paramount shares.

Prior to calling off the proposed merger, National Amusements had agreed to financial terms of the deal. The proposed deal would have seen Redstone receive $2 billion for National Amusements, with Skydance buying out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion. Skydance and RedBird had also agreed to contribute $1.5 billion in cash to Paramount's balance sheet to help reduce debt.

Terms of IAC's potential bid are unknown, but it would likely have to be more than $2 billion, Faber reported Tuesday. The New York Times first reported Diller's interest in Paramount.

While Diller, 82, is currently the chairman of IAC and Expedia, he has a long track record in the media industry, including serving as chairman and CEO of Paramount Pictures in the 1970s and 1980s. He followed Paramount with his post at the head of 20th Century Fox, where he greenlit Fox network programs including "The Simpsons."

Diller has been vocal about the need for legacy media companies such as Paramount to give up on chasing Netflix in the streaming wars and focus on their broadcast and pay-TV networks.

During the Hollywood strikes last summer, he said that despite cord cutting, traditional pay-TV is still profitable — unlike most streaming businesses. He called on legacy media to build up traditional networks again.

Diller tried to acquire Paramount Pictures in the 1990s, but went toe-to-toe with Sumner Redstone, the father of Shari Redstone, who now controls the company.

Since then, Paramount has changed and grown in various ways. The company now comprises the movie studio, as well as the CBS broadcast network, a portfolio of cable TV networks such as MTV and BET plus streaming services Paramount+ and Pluto.

While other suitors have reportedly been interested in owning Paramount, the company has been focused on restructuring its business.

Now led by the so-called Office of the CEO — CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy and Paramount Pictures CEO Brian Robbins — Paramount has concentrated on exploring streaming joint venture opportunities with other media companies, slashing $500 million in costs and divesting noncore assets.

Cartoon Network Africa Partners With E-Waste Recycling Authority To Tackle Growing E-Waste Challenge In South Africa

Cartoon Network Africa, the leading kids' TV channel in South Africa, is partnering with the local E-Waste Recycling Authority (ERA) as part of its Climate Champions initiative. The collaboration aims to educate and empower children about the increasing challenge of electronic waste.

 

As a registered Producer Responsibility Organisation (PRO), ERA is dedicated to improving e-waste recycling in South Africa and is a leader in electronic waste management. The organisation facilitates and implements the country’s regulations on the proper disposal and management of electronic waste, as laid out by South Africa’s Waste Electronic and Electrical Equipment (WEEE) Extended Producer Responsibility (EPR) Regulations, which came into effect in 2021.

 

The partnership comes at a crucial time as South Africa grapples with an escalating e-waste crisis. With only 10% of e-waste currently being recycled, it contributes to landfills quickly reaching capacity. E-waste is the fastest-growing waste stream, growing three times faster than general municipal solid waste.

 

A research survey undertaken by Cartoon Network found that 70% of children aged 6-11 across the EMEA region had not heard of e-waste or were aware but not sure / had no idea what it means. Results from the study show that:

• Majority of kids aged 6-11 yrs. Claim to have heard of e-waste, but in reality, few (30%) know what it means

• Kids in Poland (47%), Turkey (37%) and South Africa (28%) are more familiar with e-waste than peers in the UK (19%) and France (17 %)

• Polish kids (81 %) are notably more likely to link e-waste with the correct definition vs other markets; South Africa (33%), the UK (26%) & France (19%) under-index

• Most kids (87 %) have at least one e-waste item at home, with South Africa being above the index at 97%, with kids’ toys, headphones, and tablets among the top three items

• 64% of kids in South Africa say they store e-waste items at home or throw them away, highlighting the need for education

Through the partnership with ERA, Cartoon Network will use its beloved characters and engaging storytelling to teach children about e-waste, its problems, and how recycling can be a solution. The aim is to inspire children to become e-waste warriors, advocating for recycling in their homes and communities.

 

"Understanding what happens to rubbish is good to learn from childhood. Technology is such a big part of kids’ lives these days and it’s crucial that they understand the importance of recycling e-waste from a young age,” says Ashley du Plooy, CEO at ERA. “Electronics can have a second life - even broken toys with cables or batteries can be transformed into something new! That's because they often have valuable materials. Recycling them correctly also safeguards the environment for future generations."

 

By combining education with entertainment, Cartoon Network Africa and ERA hope to cultivate a generation of environmentally aware children who comprehend the significance of responsible e-waste management.

 

Cartoon Network Climate Champions’ new e-waste video content will air on the Cartoon Network channel and includes a ‘Guide to E-waste’ video that explains what e-waste is, why it’s an important issue and the basics of how we can help tackle it. Cartoon Network will also air e-waste promos, explaining issues around e-waste with a call to action on how kids can get involved in tackling it, and share weekly uploads to its social and YouTube channels to help broaden the reach and drive key e-waste messages home.

 

Monika Oomen, VP of Brand, Communications, and Digital Content Strategy for Kids EMEA at Warner Bros. Discovery, expressed, "In our efforts to engage kids into climate action, the partnership with ERA is a vital addition to our Cartoon Network Climate Champions campaign, by combining Cartoon Network's commitment to engaging storytelling with ERA's expertise in e-waste management, we can reach kids on a platform they love while empower them to become environmental champions.”

 

This comes as annual electronic waste generation is on track to reach a staggering 82 million tonnes globally per year by 2030, including items such as mobile phones, laptops, MP3 players, plugs, and batteries.

 

Cartoon Network’s Climate Champions initiative empowers and inspires young people to act and help the environment. Kids aged 6-12 can become Climate Champions by taking up daily challenges and making a world of difference together. Among the many e-waste challenges available are the ‘Device Rescue Mission,’ where children check their homes for old electronic devices that can be recycled, the ‘No Crossed Wires’ challenge, which involves taking care of chargers by preventing damage from wire tangles, and the ‘Phone Numbers!’ challenge, where kids count the number of mobile phones in their homes, including unused ones.

 

In addition to helping kids understand the extent of the e-waste problem, ERA has a comprehensive list of e-waste recycling drop-off points around the country. Living sustainably with technology means ensuring all ageing and failed electronic products are discarded using trusted e-waste recycling points that prevent the materials from ending in landfills.

For more information on how to become a Cartoon Network Climate Champion, you can visit the Climate Champions website or download the Climate Champions app and discover facts and trivia about e-waste, new quizzes, new voting cards, and new videos featuring real kids talking about the issue of electronic waste, and new e-waste challenges that can ‘Make a World of Difference.’