Red Arrow Studios, the content production and distribution arm of ProSiebenSat.1 Group, sells its majority stake of 62.5% in the US film distributor Gravitas Ventures to Anthem Sports & Entertainment, Inc., a global multi-platform media company. US based Gravitas Ventures distributes independent films and documentaries in particular to international digital platforms. The transaction is based on a cash purchase price of USD 73 million and an additional common stock consideration component.
This decision reflects the strategic direction of the ProSiebenSat.1 Group’s Entertainment segment, which is clearly focused on the region of Germany, Austria and Switzerland as its core market. The Group concentrates on the production of local, relevant content, distributing it live and on-demand across all platforms. For creative ideas as well as the production of own content, the production business of Red Arrow Studios plays an important role. With this strategy, ProSiebenSat.1 is consistently expanding the Group’s leading position in the audience and advertising market in the region of Germany, Austria and Switzerland.
Gravitas Ventures has been part of Red Arrow Studios since November 2017 and has further strengthened its development on the independent film distribution market during this time: In 2020, the company generated revenues of EUR 44 million and an adjusted EBIT of around EUR 6 million. The most successful films in the portfolio include, for example, the feature film The Secret: Dare to Dream with Katie Holmes.
Henrik Pabst, member of the Red Arrow Studios Advisory Board & Chief Content Officer of Seven.One Entertainment Group, the entertainment arm of ProSiebenSat.1 Group: “We are consistently pursuing our strategy and placing our focus on local programs. Accordingly, we are clearly aligning our content, channels and entertainment platforms towards synergies and the German speaking region. A global independent film distributor like Gravitas thus has its ideal home rather in a company such as Anthem Sports & Entertainment. We are convinced that Gravitas will add very well to Anthem Sports & Entertainment’s growth plans with its strong content and excellent customer relationships and will continue to develop there. We sincerely thank Gravitas for our years together and wish them all the best in their future journey.”
Leonard Asper, Founder & CEO of Anthem Sports & Entertainment, Inc.: “It has been a pleasure working with the Red Arrow team to make this acquisition possible. Gravitas Ventures is deeply established as a global leader in film and distribution, consistently producing top-quality content that appeals to a broad and diverse audience. Their library will be a vital asset for Anthem’s top properties, many of which are dedicated to delivering a quality cinematic experience to viewers at home or on the go. The expertise of the Gravitas Ventures team will be invaluable as Anthem moves into the digital distribution realm, and we look forward to working with them to expand our collective reach even further with specially developed FAST digital channels that will fully utilize the power of their incredible catalog.”
Nolan Gallagher, Founder & CEO of Gravitas Ventures: “In collaboration with Red Arrow we have been able to expand the size, scope and financial results for our films and documentaries. We look forward to continuing to entertain global audiences as we embark on our new chapter with Anthem.”