By Daybreak Chmielewski and Chibuike Oguh

(Reuters) – An organization backed by Blackstone Group (NYSE:) and led by former Walt Disney (NYSE:) Co executives Kevin Mayer and Tom Staggs is nearing a deal to purchase Moonbug Leisure for roughly $3 billion, three individuals conversant in the matter mentioned.

The deal for the media home behind kids’s leisure present “CoComelon” might be introduced as quickly as this week, the sources mentioned on Wednesday, requesting anonymity because the talks are confidential.

Underneath the phrases of the proposed deal, the Blackstone-led group can pay Moonbug $2.75 billion upfront. The remaining $300 million will likely be paid based mostly on the corporate’s efficiency, the sources mentioned.

They, nevertheless, cautioned that the deal phrases and the timing of the announcement might change.

Moonbug didn’t instantly reply to Reuters request for remark. Blackstone declined to remark. The Info first reported in regards to the talks between Blackstone and Moonbug.

The Blackstone-backed group had in August struck a deal to purchase Academy award-winning actress Reese Witherspoon’s media firm, Hi there Sunshine, for an undisclosed sum.

Based in 2018, Moonbug has created content material for youngsters together with “Little Child Bum” and “Blippi”, whereas its hit present “CoComelon” has greater than 100 million YouTube subscribers.

Because the chief technique officer at Disney, Mayer oversaw acquisitions of firms like twenty first Century Fox, Pixar, Marvel, and Lucasfilm at Disney and spearheaded the launch of Walt Disney Co’s streaming service Disney+. He was additionally the previous chief govt at TikTok.

The deal, ought to it shut, suits with the mannequin Staggs and Mayer have laid out for his or her new media firm. Moonbug’s kids’s exhibits are widespread on YouTube and Netflix (NASDAQ:) and its well-known characters might assist licensing and merchandising.