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

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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

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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

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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

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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

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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

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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.’

Paramount Global Is In Talks For A Streaming Merger

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Paramount Global is currently in discussions with other entertainment companies about merging its Paramount+ streaming service with an existing platform. If successful, this could trigger a wave of similar partnerships across the media sector and strengthen the industry as a whole.

The leadership at Paramount Global is actively exploring potential structures for merging Paramount+ with another streaming entity, potentially leading to a co-owned platform. These discussions, which are private, involve various media and tech company executives.

Warner Bros Discovery Inc has shown interest in such a deal, which could strengthen both services by allowing them to better compete with Netflix Inc and Disney’s suite of platforms (Disney+, Hulu, and ESPN) for audience and future content.

Earlier this year, preliminary merger talks were held for a complete deal with Paramount Global, but these discussions did not progress.

Paramount Global is also considering a potential partnership with a technology platform, as revealed by the company's co-CEO Chris McCarthy at an employee town hall on June 25.

A merged streaming service could offer more diverse programming, reducing customer churn and potentially removing Paramount+ losses from Paramount Global’s balance sheet by introducing new ownership.

While the structure for a potential joint venture with Warner Bros. Discovery hasn't been discussed in detail, it is likely that ownership wouldn't be evenly split due to the current nature and finances of the streaming assets.

Max, Warner Bros. Discovery's direct-to-consumer business, boasts about 100 million global subscribers, with 52.7 million based in the U.S. Meanwhile, Paramount+ ended its first quarter with 71 million subscribers.

NBCUniversal, owned by Comcast Corp, has also shown interest in a joint venture with Paramount+. However, these discussions did not progress significantly.

Since late 2019, traditional media companies including Paramount Global, Disney, NBCUniversal, and Warner Bros. Discovery have all launched streaming services, resulting in billions of dollars in losses. The industry consensus suggests there are too many streaming services relative to the number of total paying customers.

If Paramount finalizes a joint venture with either Max or Peacock, it could put pressure on the remaining service to seek a similar deal.

Media companies are now focusing on better monetizing streaming content through bundles and partnerships. For example, Disney and Warner Bros. Discovery have recently become more willing to license some of their content to rival streaming services, such as Netflix, to better monetize shows that aren't adding a lot of new subscribers to their streaming services.

Kartoon Studios To Launch “Winnie-the-Pooh” Megabrand On Amazon Prime Video Alongside Nationwide Retail Program in Partnership with Alliance Entertainment

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Kartoon Studios today announced its most ambitious project in the history of the company, Kartoon Studios’ “Winnie-the-Pooh.” Plans include an animated holiday movie, five holiday specials, and a four year/104 episode series, to premiere on Amazon Prime Video, via Kartoon Channel!’s subscription service on the platform. Concurrently, Alliance Entertainment (NASDAQ:AENT), a leading distributor of physical entertainment that supports major nationwide retailers, including Walmart, Target, Amazon and Barnes & Noble, will debut new merchandise through a nationwide retail program, in conjunction with Kartoon Studios rollout of a global consumer products campaign.

Kartoon Studios’ “Winnie-the-Pooh” is based on the designs and stories of one of the most successful brands of all time, A.A. Milne’s “Winnie-the-Pooh,” a property that has generated over $80 billion in sales over the last four decades and is estimated to currently generate $3-$6 billion per year for The Walt Disney Company. The total lifetime revenues exceed those of “Barbie,” “Harry Potter,” “Star Wars,” “Mickey Mouse,” “Peanuts,” “Ninja Turtles,” “Power Rangers,” “Marvel,” and almost every major brand in the world.

“Disney created an iconic and tremendously successful global brand with ‘Winnie-the-Pooh’ that we have all admired so much over many decades.  When the property went into the public domain, we knew we could only undertake creating Pooh for a new generation if we could bring a completely new, different and unique look that was contemporary, protectable, and gave voice to the characters and stories created by A.A. Milne, as has never been done,” said Kartoon Studios’ Chairman & CEO Andy Heyward. “We are thrilled to launch with Amazon Prime Video and Alliance Entertainment to deliver unique and  exceptional content, as we build out a new iteration of this entertainment brand and ‘Winnie-the-Pooh’-branded consumer products to the global marketplace.”

Pre-production has already begun on the animated holiday movie, set to premiere December 24, 2025, on Amazon Prime Video, through Kartoon Channel!’s subscription distribution agreement with them. Concurrently, the global retail program will kick off with the debut of products featuring an array of special features, distributed through Alliance Entertainment Corporation.

Kartoon Studios’ “Winnie-the-Pooh” animated content is being developed with a unique ‘yarn- based’ design and palette for the characters and backgrounds, along with original modern stories inspired by Milne’s beloved classic books. The beautifully imagined yarn gives the characters a depth and warmth.  Additionally, the stories will be told in a ‘Seussian style’ rhyme to provide an enriched dimension to the stories.

“In designing Kartoon Studios’ ‘Winnie-The-Pooh,’ we combined the best of both AI and human creativity to arrive at the unique look of the characters and backgrounds that could not have been imaginable prior to the advent of AI in our industry,” commented Heyward.  “Our use of our AI platform will enable us to bring a level of efficiency, speed-to-market, and creativity, to the production heretofore not possible,” said Heyward. “At a time when our world can be confusing for children, Pooh is an oasis of goodness, grounded in family, friendship, kindness, and love.  Those are the exact values our version of Pooh will showcase as we focus on building Kartoon Studios’ “Winnie-The-Pooh” into a long-term global megabrand, through which the simple and comforting values A.A. Milne originally imagined, will endure forever.”

Heyward added: “We think this is a generational opportunity to capitalize on one of the greatest properties ever created, with a proven track record.  Audiences around the world are demanding healthy, positive, family-friendly stories that will inspire and entertain kids, alongside a new line of products, from toys to books, videos to apparel, and more, that are steeped in these enriching values.”

The series is being financed through Joint Venture Production financing of $30 million provided by WTP SPV 1, a subsidiary of Catalyst Venture Partners.  It is non-dilutive, production financing.

Steven A. Horowitz, Sr. Managing Director  of WTP SPV and its parent company, Catalyst Venture Partners, stated: “We have committed to provide $30 million to the Special Purpose Joint Venture for this exciting new version of A.A. Milne’s ‘Winnie the Pooh’ from Kartoon Studios, which is non-dilutive to any of TOON’s existing stakeholders.  Being able to participate in a timeless and proven children’s classic such as Milne’s ‘Winnie-The-Pooh,’ through the production of original animated content and the licensing of consumer products from those proprietary character designs and stories, is a unique opportunity we are very excited about.  Andy Heyward and the team at Kartoon Studios have a long history of producing hit properties for children.  An all-star array of award-winning talent across development, production, marketing, consumer products, and distribution has been assembled to manage the brand launch, and we are excited to be a part of what we are confident will be a hugely profitable and enduring business.”

“Capitalizing on the enormous equity inherent in A.A. Milne’s ‘Winnie-The-Pooh,’ the unique designs and storytelling, as well as the production efficiency by harnessing AI, Kartoon Studios’ new iteration of the timeless brand will have an exceptional array of attributes that we believe can lead to extraordinary profitability for the company,” stated Heyward.    

Former Hawaii Five-O And Magnum Pi Star Taylor Willy Has Died

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Wily’s death was confirmed by KITV 4 Island News in Hawaii. Musician Lina Girl Langi, who had been close friends of Wily and his loved ones, announced the news on her lifestyle show, “Island Life Live.”

“It is with a heavy heart that I share the news of the passing of a Hawaii celebrity who was also a family friend,” Langi shared on the broadcast on Thursday. “Taylor Wily, former wrestler, MMA fighter and actor passed away today in Hurricane, Utah.”

She added: “He would look physically menacing until you just folded right into a hug, and that was it. My heart is breaking.” 

Her co-host, Davey D, described Wily as one of the “kindest” and “gentlest souls.”

His cause of death has not been revealed.

Wily — whose real name was Teila Tuli — played Kamekona on the CBS drama for 171 episodes for 10 seasons between 2010 and 2020. He reprised his role for seven episodes in “Magnum P.I.”

Born in Honolulu, Hawaii, in 1968, Wily also appeared in the 2008 romantic comedy “Forgetting Sarah Marshall,” which starred Jason Segel, Kristen Bell and Paul Rudd. Other credits included “Radical,” “MacGyver,” “North Shore” and “Marker.”

Off-screen, Wily was a sumo wrestler under the name “Takamishu.”

According to TV Insider, he won his first 14 matches before becoming the first foreign-born wrestler to win the championship in the third-highest makushita division. In 2000, he lost to fighter Gerard Gordeau in the Ultimate Fighting Championship.

He is survived by his wife, Halona, and their two children.