Los Angeles-based indie studio and Lore producer Propagate Content has secured a significant financial investment from boutique merchant banking firm The Raine Group.
Propagate will use the unspecified investment to expand its worldwide production, distribution and digital businesses through the launch of targeted acquisitions and new ventures including the launch of a branded content studio division and podcast network.
The producer will also look to accelerate its growth into markets across Latin America, Asia, India and the Middle East by partnering with local production communities to develop, produce and distribute original formats.
With this investment, The Raine Group joins A+E Networks as the principal investors in Propagate. The global banking firm has previously taken financial stakes in Vice Media, Imagine Entertainment, Matt Stone and Trey Parker’s Important Studios and action sports company Nitro Circus.
Raine’s co-founder Joe Ravitch and Erik Hodge, who heads Raine’s entertainment practice, will join the Propagate board.
Launched in 2015 by Howard T. Owens (pictured) and Ben Silverman with an equity investment from A+E Networks, Propagate has become a major indie studio with 17 series in production and 40 projects in development at more than 21 networks and streaming services, including Apple’s first series, Planet of the Apps and Amazon’s podcast-to-television horror series Lore.
The deal follows a wave of recent news from Propagate, which last October launched a production outfit with musician Zac Brown; inked a global production and distribution partnership with Bruce Nash and his prodco Nash Entertainment; launched a production studio with Charles Wachter; penned a partnership deal with post-cable TV network Cheddar; and in March secured a first-look partnership with Colombian network Caracol Televisión in the U.S., weeks after launching its international distribution division.
“Over the past few years we have seen massive shifts in the media industry that have changed the way production companies have traditionally done business,” said Silverman and Owens in a joint statement. “The world of media and technology continues to evolve rapidly, and we want to have the capital and partners in place to help us grow even faster allowing us to continue to deliver premium content to audiences around the world.”
“We see the future of storytelling as global, and Howard and Ben have a great record of approaching the world that way, building and distributing multinational formats with great success,” added Ravitch.