Success chases Lebron James and his off the court ventures are no different. His media company, founded with Mav Carter, was valued at $725 million after selling a minority stake to an investor group.
The group includes Nike, “Fortnite” creator Epic Games, RedBird Capital Partners (private equity firm) and Fenway Sports Group, the parent company of Boston Red Sox and Liverpool FC.
Founded in 2008, SpringHill has 142 employees who produce TV shows and films and make advertisements for brands including Procter & Gamble and PepsiCo Inc. 50% of their employees are women and 67% are people of color.
It also has an athlete-focused division called Uninterrupted that produces TV shows and podcasts and sells merchandise.
The new funds will be used to build up the company's production capabilities so it can make more original content and invest in new creators. SpringHill is expected to generate over $100 million in revenue over the next 4 quarters, and revenues of $150-$200 million in 2022.
Short Squeez Takeaway: There is deal frenzy happening in the media space as studios look to beef up their production facilities. Amazon started the chain by acquiring MGM Studios in May. Reese Witherspoon’s Hello Sunshine was bought by Blackstone and other smaller studios like A24, Legendary, and Will and Jada Pinkett Smith’s Westbrook Inc. are also rumored to be in deal talks. Let the games (& TV shows) begin.