Blackstone is reviewing strategic options for Hello Sunshine, the media company it bought for $900m through Candle Media in 2021.

A potential merger with another media company is under consideration as Blackstone reassesses its holdings in the changing entertainment market.

According to Reuters, discussions are ongoing, though Hello Sunshine is not actively seeking buyers. As media consolidation accelerates and content investment strategies shift, Blackstone and Candle Media executives are looking for ways to expand the company’s scale and profitability.

Hello Sunshine, founded by Reese Witherspoon, produces The Morning Show (Apple TV+) and Daisy Jones & the Six (Amazon). However, streaming platforms have cut content spending, and Hollywood strikes have slowed production. Despite these challenges, Hello Sunshine has remained profitable, thanks to its diversified revenue streams. Its social agency, annual Shine Away event, and Reese’s Book Club continue to generate revenue.

Blackstone-backed Candle Media recently reviewed its media investments and decided to sell ATTN, a digital content company targeting Gen-Z and millennial audiences. Buyers had expressed interest, making the sale a strategic move. Candle Media, structured as a portfolio company, has the flexibility to sell assets or form partnerships when opportunities arise.

As the media industry transforms, Blackstone’s next move with Hello Sunshine could reflect broader trends in private equity’s approach to entertainment investments. Meet and hear more from Blackstone at Italy’s Largest Private Equity Conference in Milan.