ProSiebenSat.1, TF1 Group and Mediaset have formed an alliance to co-fund a number of multi-channel networks (MCNs). Both Mediaset and TF1 will invest in Studio71, ProSiebenSat.1’s premium MCN, with shares of 5.5 percent (Mediaset) and 6.1 percent (TF1) at a company valuation of approximately EUR 400 million. ProSiebenSat.1 will retain about 70 percent of the shares in Studio71.
Studio71 was founded in 2013 and has quickly scaled to establish itself as a market leader with around 500 million video views a month in the German-speaking DACH region. By acquiring a majority in the US network “Collective Digital Studio,” which now also trades under the name Studio71, the MCN now reaches about 6 billion video views a month and joined the world’s top five players with a focus on premium channels. The company has offices in five countries and around 200 employees. As a result of the transaction, Studio71 will add offices and teams in Paris and Milan in the near future. The company’s inventory is represented by ProSieben’s SevenOne Media.
As part of the same deal, ProSiebenSat.1 will also acquire a strategic minority interest in “Finder Studios”, a French premium MCN co-founded by TF1. In addition to that ProSiebenSat.1 and Mediaset have also agreed to found a joint venture to launch Studio71 l in the Italian market.
ProSieben also say that Studio71 will aim to tap into additional markets alongside Germany, USA, Canada, Great Britain and Austria, with this partnership leading to the company setting up in France and Italy. Christof Wahl, COO of the ProSiebenSat.1 Group, said, “The partnership with TF1 Group and Mediaset gives us access to key European markets where the online video market is just now really picking up momentum and promising significant potential. With the united marketing power of our media companies, we have an attractive ecosystem with which we can generate additional income and continue Studio71’s digital success story.”
TF1 Group and Mediaset are both members of the “European Media Alliance”, a media network of leading European broadcasters, initiated by ProSiebenSat.1 in 2014 to create common synergies and investment opportunities.