Blackstone's $1B bet on Reese Witherspoon flops as profits fall 50% below forecasts: report

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Blackstone's $1B bet on Reese Witherspoon flops as profits fall 50% below forecasts: report
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Backed with ten-figure funding from Blackstone, Candle Media scooped up Reese Witherspoon’s Hello Sunshine and Moonbug Entertainment, though the companies are expected to deliver returns some…

‘You have a baby, in a bar!’ Melanie Lynskey reconnects with ‘Sweet Home Alabama’ kidsTwo ex-Walt Disney executives raised more than $1 billion to build the next hit entertainment hub, but the investment — which was partly funneled to Reese Witherspoon’s media company — has been a major flop, according to a report.

As a result, Candle can expect to only see $140 million to $170 million in earnings. Candle originally expected to rake in $330 million this year. A spokesperson for Blackstone told The Post: “Candle is a highly profitable, high-quality business with world-class talent and creative output that has had significant organic growth since our investments. As with virtually everyone else in this industry, there has been an impact from once-in-a-generation strikes, but we are confident about how well positioned Candle is for further earnings growth going forward.

At the time Mayer, 61, and Staggs, 62, scooped up a half-dozen media assets, there was lots of optimistic buzz about the future of streaming.

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