ProSiebenSat.1 Invests in U.S. Multichannel Network

MUNICH: The ProSiebenSat.1 Group has purchased a 20-percent stake in Collective Digital Studios (CDS), a leading U.S.-based multichannel network.

CDS produces, distributes and markets video content through digital platforms; it currently garners nearly 1 billion video views per month with 600 channels and more than 100 million subscribers. The CDS portfolio includes The Annoying Orange, Epic Meal Time and FreddieWong/Video Game High School. The company also develops formats in a variety of genres such as action, beauty and lifestyle, comedy, kids and family, and music.

The equity stake was purchased by Red Arrow Entertainment.

Dr. Christian Wegner, member of the executive board of ProSiebenSat.1, said: "Digital functions globally. Having established a leading multichannel network in the German-speaking region, we are taking the consequent next step with CDS to create a global player in what is a high-growth sector of the entertainment industry."

Jan Frouman, the group managing director at Red Arrow Entertainment Group, added: "Our partnership with CDS is a major strategic step forward for Red Arrow. Not only will we be expanding our global digital presence in a real and meaningful way, but we will be doing it with a team who knows the space and shares our creative philosophy. We couldn't be more pleased."

Michael Green, chairman of CDS, commented: "With the ProSiebenSat.1 investment, CDS has gained a strategic partner that will enable us to monetize the global reach of our content as well as tap into the Red Arrow distribution system to create additional opportunities for our creative talent. With a fierce commitment to the most talented creators on the platform, a top tier nationwide sales division and global distribution both on and offline, CDS is now poised to become a leading 21st century media company."