RTL snags StyleHaul for $107m

European broadcast giant RTL Group has bolstered its online operations by buying a majority stake in multi-channel network StyleHaul for US$107m (€85m).

RTL took a 22% stake in the business in 2013 but this latest outlay will take that share to 94%, with the German broadcaster pledging to invest a further US$20m into StyleHaul to fund the YouTube channels network’s growth plan.

US-based StyleHaul, founded in 2011 by Stephanie Horbaczewski with backing from Machinima founders Allen and Aaron DeBevoise, claims to attract 900 million video views per month through its fashion, beauty and lifestyle programming.

StyleHaul has worked closely with RTL Group’s content production arm, FremantleMedia, whose North American digital studio, Tiny Riot, produces exclusive content for the channels including talkshow The Crew.

The acquisition is part of RTL’s plan to expand its presence in the online video space in North America, where it aims to more than double its views to around 40 billion.

Anke Schäferkordt and Guillaume de Posch, Co-CEOs of RTL Group, said the acquisition was “another major strategic step in developing RTL Group into a global powerhouse in the rapidly growing market for online video.”

They added: “StyleHaul has a first-class management team that built up the only multi-channel network of scale with a clear focus on the fashion and beauty segment, and has a highly engaged audience – a very compelling proposition for major brand advertisers.”

It’s the latest online investment from RTL Group, which put US$36m into Vancouver-based online video company BroadbandTV in 2013 as part of a planned series of investments in the firm.

This latest deal is expected to be completed by the end of November and RTL will now look into acquiring the remaining equity that is owned by StyleHaul’s management and employees.