Kevin Mayer believes in the power of brands.
At a recent dinner hosted by 500 Global, the longtime media exec called out a trend that he’s seen remain consistent over the course of his career. Strong brands have resonance with consumers in ways that increase value — and then some.
Mayer pointed to Disney’s multi-billion dollar acquisitions of Pixar and Marvel during his tenure with the company, both of which he said were questioned by investors at the time.
"Brands will always have massive value because brands are, by definition, a very substantial decision making point for consumers.”
Kevin Mayer
Candle Media co-founder and co-CEO
“We knew authority was shifting from producers and distributors to consumers, so we decided the best thing to do was buy the brands that matter,” Mayer said. “Brands will always have massive value because brands are, by definition, a very substantial decision making point for consumers. Am I going to watch this or watch that? Am I going to try this or try that?”
Mayer’s bet on brands has carried over to his latest endeavor as co-founder and co-CEO of Candle Media, which is backed by the private equity firm Blackstone and acquires independent film and TV studios. In 2021, it bought Reese Witherspoon’s studio Hello Sunshine, which focuses on telling stories from a female perspective. Months later, Mayer and team purchased Moonbug Entertainment, makers of the popular kids’ show CoComelon, for a reported $3 billion.
Mayer called CoComelon a “classic flywheel” with its social community (as one of the most popular YouTube channels in the world), its content (as a top Netflix show with a box office movie on the way), and its commerce opportunities with merchandising.
“It’s a juggernaut,” Mayer said. “And we own the whole thing.”
“We invest in tech, but we really help founders build generational brands for category defining businesses,” Mayer said, adding that strong brands can create customer acquisition efficiencies and help reduce churn.
“There’s an emotional connection with consumers that really happens,” he said. “You can describe it intellectually, but until you’ve done it, you really can’t really guide someone down the right path.”
500 GLOBAL PROGRAMS AND EVENTS ARE OPERATED BY 500 STARTUPS INCUBATOR, L.L.C. (TOGETHER WITH ITS AFFILIATES, “500 GLOBAL”) AND THE FUNDS ADVISED BY 500 STARTUPS MANAGEMENT COMPANY, L.L.C. DO NOT PARTICIPATE IN ANY REVENUE GENERATED BY THESE ACTIVITIES.
ALL CONTENT PROVIDED IN THIS BLOG IS PROVIDED FOR GENERAL INFORMATIONAL OR EDUCATIONAL PURPOSES ONLY. 500 GLOBAL M...
500 GLOBAL PROGRAMS AND EVENTS ARE OPERATED BY 500 STARTUPS INCUBATOR, L.L.C. (TOGETHER WITH ITS AFFILIATES, “500 GLOBAL”) AND THE FUNDS ADVISED BY 500 STARTUPS MANAGEMENT COMPANY, L.L.C. DO NOT PARTICIPATE IN ANY REVENUE GENERATED BY THESE ACTIVITIES.
ALL CONTENT PROVIDED IN THIS BLOG IS PROVIDED FOR GENERAL INFORMATIONAL OR EDUCATIONAL PURPOSES ONLY. 500 GLOBAL MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR INFORMATION CONTAINED THEREIN AND WHILE 500 GLOBAL HAS TAKEN REASONABLE STEPS TO ENSURE THAT THE INFORMATION CONTAINED THEREIN IS ACCURATE AND UP-TO-DATE, NO LIABILITY CAN BE ACCEPTED FOR ANY ERROR OR OMISSIONS. UNDER NO CIRCUMSTANCES SHOULD ANY CONTENT PROVIDED IN THIS POST BE CONSTRUED AS INVESTMENT, LEGAL, TAX OR ACCOUNTING ADVICE BY 500 GLOBAL OR ANY OF ITS AFFILIATES.
UNDER NO CIRCUMSTANCES SHOULD ANY INFORMATION OR CONTENT IN THIS POST, BE CONSIDERED AS AN OFFER TO SELL OR SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES. FURTHER, NO CONTENT OR INFORMATION CONTAINED THEREIN IS OR IS INTENDED AS AN OFFER TO PROVIDE ANY INVESTMENT ADVISORY SERVICE OR FINANCIAL ADVICE BY 500 GLOBAL. UNDER NO CIRCUMSTANCES SHOULD ANYTHING THEREIN BE CONSTRUED AS FUND MARKETING MATERIALS BY PROSPECTIVE INVESTORS CONSIDERING AN INVESTMENT INTO ANY 500 GLOBAL INVESTMENT FUND.
