|[March 27, 2014]
Collective Digital Studio (CDS) Announces Major Investment by Leading German Media Company ProSiebenSat.1
LOS ANGELES & MUNICH --(Business Wire)--
Collective Digital Studio (CDS), a next generation media company,
announced today a significant investment for a minority share of the
company from ProSiebenSat.1, one of Europe's largest media companies.
Focused on empowering creators, growing brands and building audiences,
CDS oversees one of the leading YouTube (News - Alert) multichannel networks with over
600 channels delivering nearly a billion views a month. It pioneered the
distribution of premium online content to television and is best known
for producing the hit web series Video Game High School and TV
shows for The Annoying Orange (News - Alert), Epic Meal Time and F?ED. CDS also boasts
an unparalleled track record for delivering highly successful branded
content initiatives for Fortune 200 brands, including Verizon (News - Alert), Dodge,
Estee Lauder, Unilever, Procter & Gamble, Toyota, Sony PlayStation, and
"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," said Michael Green, Chairman
CDS. "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
In August 2013 ProSiebenSat.1 formed its own multichannel network,
Studio71, where its current web production activities are bundled. With
more than 100 million video views per month, Studio71 has very quickly
established itself as a leading provider of online video content in
Germany. The goal of the new partnership is to jointly build one of the
world's leading multichannel networks and exploit synergies between the
companies. For example, Studio71 will receive video content from CDS and
marketing will be handled in-house by SevenOne Media. Close cooperation
in theareas of technology and business intelligence is also a key
aspect of the partnership.
The purchaser of the stake in CDS is ProSiebenSat.1's
production/distribution group, Red Arrow Entertainment. The
ProSiebenSat.1 subsidiary oversees a group of 15 international
production companies in nine countries, as well as building partnerships
with top creative talent and acting as a leading programming
distribution organization. Red Arrow is significantly expanding its
presence in the digital market and, together with CDS, will back online
talent and develop new content verticals. At the same time, Red Arrow
will provide support for global programming distribution for content
from the venture.
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, Group Managing Director, Red Arrow Entertainment Group
said, "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
CDS was advised by Moelis & Co and represented by Cooley LP.
ProSiebensat.1 was represented by Milbank.
The ProSiebenSat.1 Group is one of the largest independent media
corporations in Europe. Its core business is free TV financed by
advertising. With the stations SAT.1, ProSieben, kabel eins, sixx, SAT.1
Gold and ProSieben MAXX, the company is the number 1 in the German TV
advertising market. In total, the group's stations reach about 42
million TV households in Germany, Austria and Switzerland. A strong
digital and ventures portfolio as well as an international production
network are also part of the ProSiebenSat.1 Group.
ProSiebenSat.1 Media AG was established in 2000, the headquarters are
located in Unterföhring near Munich. The Group is listed and employs
more than 3,000 staff in 12 countries.
About Collective Digital Studio (CDS)
Collective Digital Studio (CDS) is a next generation media company
focused on empowering creators, growing brands and building audiences.
It oversees one of the leading YouTube multichannel networks with over
600 channels delivering nearly a billion views a month. Distinguished
for its ability to produce, distribute and market intellectual property
across multiple platforms, CDS pioneered the distribution of premium
digital content to television and is best known for producing the hit
web series Video Game High School as well as TV shows for The
Annoying Orange, Epic Meal Time and F?ED. It boasts an unparalleled
track record for delivering highly successful branded content
initiatives for Fortune 200 brands, including Verizon, Dodge, Estee
Lauder, Unilever, Procter & Gamble, Toyota, Sony PlayStation, and many
more. CDS' world class sales organization includes offices in New York,
Los Angeles, Detroit and San Francisco.
CDS is a subsidiary of Collective Management Group, a full-service,
multi-media management/production company that is owned by its Founders
and GF Capital Private Equity Fund, LP.
For more information, visit: http://collectivedigitalstudio.com/.
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