Moonbug Entertainment Ltd., a digital entertainment company that produces content for children, has agreed to be acquired by a recently formed media company run by former Walt Disney Co. executives Kevin Mayer and Tom Staggs and backed by investment capital from Blackstone.
Moonbug’s founders, Chief Executive René Rechtman and Chief Operating Officer John Robson, and existing management team and shareholders, will retain equity stakes in the Mayer-Staggs-Blackstone-backed media company.
New York-based Blackstone didn’t disclose financial terms of the deal or provide the name of the media company.
Founded in 2018, Moonbug is based in London and has a second office in Los Angeles. The company’s shows include “CoComelon,” “Blippi” and “Little Baby Bum.” Its content appears in 27 languages on more than 100 platforms worldwide such as YouTube, Netflix, Hulu, HBO, Amazon and Sky.
Blackstone said “CoComelon” is currently the second-most subscribed YouTube channel with 120 million subscribers globally and the most-watched kids show on Netflix.
The deal is the second acquisition for Mayer and Staggs’ new media company backed by Blackstone, following the acquisition of Hello Sunshine, a media company founded by actress Reese Witherspoon.
“John and I have built a category-leading, digital-first kids entertainment business based on strong values and content that is focused on digital platforms,” Rechtman said in a statement. “Our vision is to build global family franchises, which is wholly aligned with Kevin and Tom’s vision and experience. I have had the pleasure of working with them both earlier in my career and am thrilled to be reunited to build the next global powerhouse of entertainment. You could not find stronger partners in our industry.”
“We have known René and his innovative team for years, including during our time together at Disney, and they have built a perfect example of the type of category-defining business we are looking to bring into our company,” Mayer and Staggs said jointly. “They know how to identify and support brands that are beloved by millions of families across the globe. We and our partners at Blackstone look forward to helping expand Moonbug’s portfolio of titles and further extend its franchises across digital platforms and key licensing and merchandising channels.”
Blackstone said its investment in the venture is being made through funds affiliated with the firm’s flagship private equity business. The firm has made a range of entertainment, digital and content-focused investments across its businesses, including children-focused global theme park operator Merlin Entertainment, water park operator Great Wolf Resorts, music rights organization SESAC, online genealogy platform Ancestrycom and others.
