ProSiebenSat.1 founds global multichannel network, Collective Studio71 Acquisition of majority interest in US company Collective Digital Studio
Studio71 and Collective Digital Studio to be united under a new umbrella brand, Collective Studio71
Munich, July 8, 2015. The ProSiebenSat.1 Group continues to internationalize its online video business, founding Collective Studio71, a globally operating multichannel network (MCN) with locations in Los Angeles, New York, Berlin, and London. To do so, the media company is acquiring a majority interest in Collective Digital Studio (CDS), one of the leading MCNs in the United States, in which ProSiebenSat.1 has already held a minority stake since 2014. Unlike aggregating MCNs, CDS focuses on producing high-quality digital content for a young target audience and ranges among the top five networks in the US. CDS boasts a successful track record for delivering entertainment content for numerous brands, such as Unilever, Procter & Gamble, Toyota, and Sony PlayStation. The acquisition is subject to approval by the competent antitrust regulators in the United States.
Studio71 and Collective Digital Studio united under Collective Studio71
As part of the transaction Studio71, the MCN built up by ProSiebenSat.1 under the direction of Sebastian Weil and Ronald Horstman to be market leader in Germany, and CDS will be merged into the new umbrella company, Collective Studio71. ProSiebenSat.1 is investing US$82.8 million for this purpose, and will hold 75 percent of the equity shares in Collective Studio71.
The two companies share a common philosophy and strategy in their markets. They produce, distribute, and market video content over digital platforms and have outstanding creators in their markets under contract, with popular channels and shows like Lets Play Together, Last Man Standing (both Studio71), Rhett & Link and Video Game High School (both CDS). With over a thousand channels in total, Collective Studio71 currently registers roughly 2 billion video requests per month, putting it among the largest and fastest-growing MCNs worldwide. The new umbrella company will be managed by ProSiebenSat.1 executives Christof Wahl (Chair), Sebastian Weil, and Ronald Horstman as well as CDS founders Reza Izad and Michael Green.
As organizations, CDS will continue to exist for the American market and Studio71 for the European market. Going forward, Collective Studio71 will push to build international talent, produce global Web-only formats, and inorganically expand operations to include additional territories. It will also intensify cooperation with all digital distribution platforms and in the areas of branded entertainment and tool development.
Dr. Christian Wegner, Member of the Executive Board ProSiebenSat.1, said, ProSiebenSat.1 created and built up its own MCN with Studio71, and it has established itself as the largest and most successful network in the German-speaking world. By founding Collective Studio71 we will now instantly be a global player in this attractive growth market.
Christof Wahl, Managing Director of ProSiebenSat.1 Digital and responsible for Digital Entertainment, said, Studio71 and CDS are joined by the same digital DNA: a strong focus on developing innovative Web-only productions and branded entertainment formats, and intensive cultivation for our creators. The added value for our partners has top priority here. By the merger of Studio71 and CDS we will reach a global audience and can thereby offer additional marketing opportunities to advertising customers worldwide. At the same time, we will invest in international talent development so we can also be a preferred partner for the Web stars of tomorrow.
Michael Green, CEO and founder of CDS, said, Through our existing ProSiebenSat.1 partnership, we have been able to greatly increase monetization for our creators in Germany. The combination of our two MCNS, backed by a strong financial foundation, will enable us to leverage opportunities throughout Europe, the Americas, and other territories to establish the first truly global MCN. There will also be a strong focus on bringing in broadcast partners for all these territories worldwide.
About Studio71:
Studio71 is the multichannel network of the ProSiebenSat.1 Group. Headquartered in Berlin, the company was founded in 2013 and has now established itself as the number one in Germany. Studio71 concentrates the broadcasting groups range of Web-only content and its distribution through in-house platforms like MyVideo and through third-party platforms. Germanys leading moving-image marketer is responsible for ad marketing with SevenOne Media. Studio71 produces and aggregates roughly two hundred channels in its network, generating nearly 300 million video views monthly. By developing its own Web-only formats such as Last Man Standing, Lets Play Poker, and The Mansion and numerous branded-entertainment productions for Sony, Axe, and Ubisoft, Studio71 has established itself as one of the leading Web-only specialists in the German-speaking world. It currently has around one hundred partners under contract, including some of the best-known creators in Germany, such as Gronkh or Kelly MissesVlog.
About Collective Digital Studio
Collective Digital Studio (CDS), founded by Michael Green, Reza Izad, Gary Binkow and Dan Weinstein, is a multi-platform digital entertainment company that develops, produces and distributes original entertainment programming. It manages one of the leading YouTube multichannel networks with over 900 channels delivering more than one billion views a month. Founded in 2011, CDS is distinguished for its ability to produce, distribute and market intellectual property across digital and traditional platforms, having pioneered the distribution of premium digital content to television. The company is best known for produc
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ProSiebenSat.1 founds global multichannel network, Collective Studio71 Acquisition of majority interest in US company Collective Digital Studio 
