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Reese Witherspoon's Hello Sunshine to Be Sold to Blackstone-Backed Firm

Hello Sunshine, the media business founded by Reese Witherspoon, announces it agreed to be bought by a company backed by Blackstone.
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Hello Sunshine, the media business founded by Reese Witherspoon, announced Monday that it has agreed to be purchased by a company backed by private-equity firm Blackstone  (BX) - Get Blackstone Group Inc. Class A Report.

Financial terms weren’t revealed, but sources told The Wall Street Journal that the deal values Hello Sunshine at about $900 million.

Blackstone is forking over more than $500 million in cash to buy shares from existing Hello Sunshine investors, including AT&T  (T) - Get AT&T Inc. Report and Emerson Collective, the sources said.

Hello Sunshine, started five years ago, is responsible for such hits as “Big Little Lies” and “The Morning Show.”

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Witherspoon and Hello Sunshine’s existing senior management team, led by Chief Executive Sarah Harden, will continue to oversee Hello Sunshine’s day-to-day operations. They will also remain “significant equity holders in the business,” the companies said.

The unnamed, Blackstone-backed venture making the acquisition will be run by former Walt Disney executives Kevin Mayer and Tom Staggs.

Witherspoon told the Journal in an interview that the sale of Hello Sunshine was a major endorsement of her bet that Hollywood needs more stories told by and for women. 

“I’m going to double down on that mission to hire more female creators from all walks of life and showcase their experiences,” Witherspoon said. “This is a meaningful move in the world because it really means that women’s stories matter.”