Germany’s ProSiebenSat.1 announced Thursday it had struck deals with France’s TF1 and Italy’s Mediaset to expand the reach of its online video production company Studio71.
As part of the alliance, TF1 will take a 6.1 percent stake in Studio71 and Mediaset will take 5.5 percent, valuing the company at some 400 million euros ($426 million).
ProSiebenSat.1 retains about 70 percent of the shares in Studio71, which provides support to creators of video content for websites such as YouTube and MyVideo.
« 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, » ProSiebenSat.1’s chief operating officer Christof Wahl said in a statement.
ProSiebenSat.1 is one of two big television players in Germany alongside the Bertelsmann-owned RTL group, and has annual revenues of around three billion euros.
Studio71, founded in 2013 in Germany, propelled itself into the major leagues of the industry by acquiring a majority of the US network Collective Digital Studio and now boasts about 6 billion video views a month.
« 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, » added Wahl.
As part of the deal, Studio71 will take a minority stake in TF1’s Finder Studios and will form a joint venture with Mediaset in Italy.
Olivier Abecassis, vice president for innovation and digital at the TF1 Group, said: « By becoming the operator of Studio71 France, we are bolstering our presence in multi-platform premium online video, and our status as a key partner for emerging web creatives. »
The deal is subject to approval by regulators.
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© 2017 AFP