ProSiebenSat.1 invests in US firm

Germany’s ProSiebenSat.1 Group has taken a 20% stake in Collective Digital Studios (CDS), the US multi-channel network that launched popular web series such as The Annoying Orange and Epic Meal Time.

CDS produces, distributes and markets video content via digital platforms, currently achieving nearly a billion video views per month with 600 channels and more than 100 million subscribers, ProSiebenSat.1 said.

The network also develops formats in a variety of genres, such as action, beauty and lifestyle, comedy, kids and family, and music.

The investment comes from ProSiebenSat.1’s production/distribution group, Red Arrow Entertainment, which oversees 15 international production companies in nine countries.

The goal of the new partnership is to “jointly build one of the world’s leading multi-channel networks and exploit synergies between the companies,” ProSiebenSat.1 said.

Financial details of the deal were not disclosed. ProSiebenSat.1 Group reported record annual results earlier this year. Revenues rose 10.6% to €2.6bn (US$3.6bn), underlying profit increased 6.1% to €790.3m and net income rose 6.8% to €379.7m.

It currently has its own German multi-channel network, Studio71, where its web production activities are bundled. As part of the investment, Studio71 will now receive video content from CDS.

Jan Frouman, MD of Red Arrow Entertainment Group, said the partnership represents a “major strategic step forward” for the company.