Refinitiv Newscasts - BVTV: Reese’s pieces

Honest

07/09/2023 19:45

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Source: Reuters

Description: “Legally Blonde” star Reese Witherspoon is selling a majority
stake in her Draper James clothing line, two years after Blackstone backed a
buyout of her Hello Sunshine media company. Some celebrity-studded deals work
out well, but many turn fame to shame, explains Sharon Lam.
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Video Transcript:

Hollywood mogul Reese Witherspoon is back on the business marquee. Two years
after the star of the hit movies Legally Blonde and Wild, sold her
female-focused Hello Sunshine Media Company at a $900 million valuation. She
found a buyer for her Southern-inspired clothing and lifestyle brand Draper
James. Private equity firm Consortium Brand Partners has acquired a 70% stake
in the company named for Witherspoon's grandparents. And while some celebrity
studied deals are worthy of the headliners involved, many others have turned
fame into financial shame. Take Diageo for instance. The distiller of Johnnie
Walker Whiskey and Ketel One paid $1 billion for George Clooney's high-end
tequila brand Casamigos in 2017. The investment seems to be worthy of a toast.
Casamigos is now a major driver of Diageo’s sales, and it was the
company's fastest growing tipple in North America in its most recent fiscal
year. Apple too did well by forking over $3 billion for Beats headphones in
2014. Dr. Dre's company has been leveraged to build the iPhone makers
music-streaming and its popular AirPods. Not all deals have worked out so
well. According to media reports, Kylie Jenner and her sister Kim Kardashian
are both seeking to buy back stakes in their respective beauty businesses that
they previously sold to Coty. Pop singer Jessica Simpson reclaimed ownership
of her namesake fashion brand a few years ago after it fell into financial
ruin under a new owner. Jessica Alba's Honest Company, which sells everything
from diapers to lipstick, has been a dud since the 2021 stock market debut.
Even for entertainment luminaries like Witherspoon, it can be hard to make the
financial stars align