3 investors bought 30 YT kids’ channels. → Scaled to $100M EBITDA...
The Icahnist@TheIcahnist
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Mar 08, 2025
~2 min read
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1
3 investors bought 30 YT kids’ channels.
→ Scaled to $100M EBITDA in 3 years
→ 50% margins
→ Sold for $3 BILLION to Blackstone
The ultimate media roll-up playbook👇
→ Scaled to $100M EBITDA in 3 years
→ 50% margins
→ Sold for $3 BILLION to Blackstone
The ultimate media roll-up playbook👇
2
The Opportunity
Back in 2018, Youtube kids content was an absolute cash cow:
- YouTube’s ad revenue was exploding
- Top kids' brands were still owned by original creators
- Hollywood had no idea these assets were valuable
- No one had diversified them beyond YouTube
Translation? Billions in hidden value — just waiting to be unlocked.
Back in 2018, Youtube kids content was an absolute cash cow:
- YouTube’s ad revenue was exploding
- Top kids' brands were still owned by original creators
- Hollywood had no idea these assets were valuable
- No one had diversified them beyond YouTube
Translation? Billions in hidden value — just waiting to be unlocked.
3
The YouTube land grab
Moonbug deployed $400M to buy:
1. Cocomelon — 170M subscribers
2. Blippi — 20M subscribers
3. Little Baby Bum — 40M subscribers
By 2021, Moonbug was pulling in $237M revenue at 50% EBITDA margins.
Moonbug deployed $400M to buy:
1. Cocomelon — 170M subscribers
2. Blippi — 20M subscribers
3. Little Baby Bum — 40M subscribers
By 2021, Moonbug was pulling in $237M revenue at 50% EBITDA margins.
4
Once acquired, Moonbug scaled each brand beyond YouTube:
✔️ Netflix & Disney+ deals 🎥
✔️ Merchandise & licensing 🧸
✔️ Music, video games & theme parks 🎮
This wasn’t just YouTube arbitrage.
It was IP transformation.
✔️ Netflix & Disney+ deals 🎥
✔️ Merchandise & licensing 🧸
✔️ Music, video games & theme parks 🎮
This wasn’t just YouTube arbitrage.
It was IP transformation.
5
By late 2021, Moonbug hit $100M EBITDA.
Enter Candle Media:
- Backed by Blackstone 🏦
- Led by ex-Disney execs 🎬
- Buying media IP like crazy
Candle paid $3B for Moonbug.
At 30x EBITDA, it was one of the richest roll-up exits ever.
Enter Candle Media:
- Backed by Blackstone 🏦
- Led by ex-Disney execs 🎬
- Buying media IP like crazy
Candle paid $3B for Moonbug.
At 30x EBITDA, it was one of the richest roll-up exits ever.
6
The Payouts
CEO Rene Rechtman → $300M
COO John Robson → $300M
Head of M&A Alfred Chubb → $60M
CEO Rene Rechtman → $300M
COO John Robson → $300M
Head of M&A Alfred Chubb → $60M
7
The Playbook
1. Acquire popular kids' content brands.
2. Expand their reach across platforms like Netflix and Disney+.
3. Monetize through merchandising, licensing, music, and video games.
1. Acquire popular kids' content brands.
2. Expand their reach across platforms like Netflix and Disney+.
3. Monetize through merchandising, licensing, music, and video games.
8
Lessons
1️⃣ Online video content is a cash machine – With massive, consistent viewership, monetization opportunities were endless.
2️⃣ In 2018-2020, top kids’ brands were still controlled by their original creators. This meant they were fragmented and ripe for consolidation.
3️⃣ Major studios hadn’t caught on yet – These valuable assets were available at reasonable prices before Hollywood recognized their full potential.
4️⃣ Expanding beyond YouTube unlocked huge upside – By branching into platforms like Netflix, merchandise, video games, and music, they created additional revenue streams and maximized profitability.
1️⃣ Online video content is a cash machine – With massive, consistent viewership, monetization opportunities were endless.
2️⃣ In 2018-2020, top kids’ brands were still controlled by their original creators. This meant they were fragmented and ripe for consolidation.
3️⃣ Major studios hadn’t caught on yet – These valuable assets were available at reasonable prices before Hollywood recognized their full potential.
4️⃣ Expanding beyond YouTube unlocked huge upside – By branching into platforms like Netflix, merchandise, video games, and music, they created additional revenue streams and maximized profitability.
