France’s leading commercial network TF1, and Italian broadcaster Mediaset, have taken minority stakes in Studio71, the media studio and multi-channel network of the ProSiebenSat.1 Group. The companies are putting in a combined investment of 53M euros ($56.4M) at a valuation of approximately 400M euros ($425.7M). ProSiebenSat.1 will retain about 70% of the shares in Studio71. The deal gives Studio71 access to key European markets where the online video market is picking up momentum.
The funds will be used towards additional premium content and IP as well as further territory expansion as Studio71 seeks to become the top global premium digital video network for creators.
As part of the transaction, Studio71 will establish local operations in France and Italy. It will also acquire a strategic minority interest in premium MCN, Finder Studios, of which the TF1 Group is the controlling shareholder; and, it will partner with Mediaset to launch Studio71 in the Italian market. Each entity will feature content from the broadcasters’ most successful TV shows as well as content from Studio71’s top creators.
In Germany, Studio71 brings together ProSiebenSat.1 Group’s TV content including hit shows like Germany’s The Voice, The Voice Kids and Galileo and top online content from leading creators. Headquartered in Los Angeles, Studio71 has offices in Berlin, New York, Toronto and London. The company is looking to replicate its model around the world.
Studio71 was formed by the merger of Collective Digital Studio and ProSiebenSat.1 Group’s Studio71. It is currently the fourth largest MCN in the world generating more than 6B monthly views on YouTube alone. Deals are in place with Facebook, Watchable, Go90, Liberty Global, YouTube Red, ZDF, Canal Plus, Live.me and others. Earlier this year, it entered a multi-picture distribution deal with Paramount’s Worldwide Television Licensing & Distribution and Acquisitions division for films from the studio’s stable of top digital influencers.