After arriving on the digital media scene in 2021, Candle Media made a splash by spending billions to acquire big-name media properties. That shopping spree has allowed Candle to assemble a strong portfolio, but the company’s bottom line may not meet expectations in 2023. According to a report from Bloomberg, Candle could miss earnings targets by 50% thanks to unforeseen slowdowns that have affected the company’s biggest subsidiaries.
The report indicated that Candle’s yearly profit will end up somewhere between $140 million and $170 million. That would be short of previous predictions, including a $330 million estimate and a more conservative figure supplied by Blackstone. The banking firm has supplied Candle with a ten-digit investment to support its acquisitions.
Candle’s two biggest properties are largely responsible for its financial shortcomings, according to Bloomberg. One of the company’s first acquisitions, Reese Witherspoon’s Hello Sunshine, is projected to deliver just 10% of its expected yearly earnings. Moonbug, the owner of kid-friendly entertainment sensation CoComelon, is only expected to reach 30% of its projected earnings after joining Candle in a $3 billion deal.
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The founders of Candle, former Disney execs Tom Staggs and Kevin Mayer, established their venture with multiple platforms and formats in mind. Despite those hefty ambitions, Mayer (who briefly served as the CEO of TikTok) admitted that “unprecedented” obstacles have created headwinds for Candle. In an interview with Bloomberg, he cited the WGA strike and flagging YouTube ad revenue as two of those roadblocks.
“It was a disappointing year for sure,” Mayer told Bloomberg. “But we like our position.” Big projects in the works at Candle include a CoComelon movie and retail partnerships with brands like Squishmallows.
Staggs and Mayer have returned to Disney in advisory roles, but they’re not abandoning their company — and neither is its primary backer. “Candle is a highly profitable, high-quality business with world-class talent and creative output that has had significant organic growth since our investments,” a Blackstone spokesperson said in a statement. “As with virtually everyone else in this industry there has been an impact from once-in-a-generation strikes and the broader economic environment.”
