Reese Witherspoon’s Hello Sunshine laid off approximately 50% of its staff Friday after the founder and media partner Mediawan bought back the company for a fraction of its previous valuation.
The company will now focus primarily on film and television projects and the Reese’s Book Club brand, after reportedly eliminating its direct-to-consumer team entirely. The remaining staff includes employees across film and television, the book club, social and digital marketing and partnerships.
The layoffs affect roughly 30 employees. Hello Sunshine declined to comment to TheWrap.
The “Legally Blonde” star teamed up with French media conglomerate Mediawan to buy her company back for “low to mid eight figures” on Oct. 13, according to a person familiar with the terms of the transaction. At the high end of that range, the deal would amount to roughly $50 million.
Blackstone-backed Candle Media acquired the company at a $900 million valuation in 2021. Using $50 million as the estimate, Witherspoon’s buyback would represent a roughly 94% decline from that original valuation.
“We were just wrong,” said an individual close to Candle Media. “This isn’t a great deal in comparison to what we paid. It’s not a great outcome for Blackstone.”
Witherspoon launched Reese’s Book Club, a community of more than 6.2 million book lovers, in 2017. The book club has since evolved into a hub for developing film and television projects.
The layoffs reflect a shift away from direct-to-consumer efforts aimed at turning fans into customers for content and products recommended by Witherspoon.
Hello Sunshine is now one of the production companies under Mediawan’s umbrella. Other companies among Mediawan’s nearly 100 labels include See-Saw Films, Margot Robbie’s LuckyChap International, Misfits Entertainment, Palomar and Our Films. Together, the companies produce more than 450 titles each year, with notable credits including “F1,” “Adolescence,” “Slow Horses,” “The Count of Monte Cristo,” “Miraculous” and “Call My Agent!”
Notable Hello Sunshine titles include Prime Video’s “Elle” and Apple TV’s “Lucky” and “The Morning Show,” as well as HBO’s “Big Little Lies.”
Hello Sunshine was founded in 2016 with backing from The Chernin Group and Jesse Jacobs.
