German-based media company ProSiebenSat.1 has launched a strategic review of Red Arrow Studios with an aim to explore a sale or an industry partnership for the global production and distribution outfit.
A ProSiebenSat.1 spokesperson confirmed to Realscreen that the evaluation has been initiated, with investment bank Morgan Stanley appointed to handle the process. Potential investors have until September 13 to register initial expressions of interest, according to German website DWDL.de who first reported the news.
“We have started a strategic review of Red Arrow Studios – our international content production business. We are evaluating all different kinds of scenarios, and a sale of the business would be just one option of many,” the spokesperson offered via a statement from the company.
Red Arrow Studios is comprised of 20 production companies in seven territories throughout Europe and the U.S, including Married at First Sight (pictured) producer Kinetic Content and Say Yes To The Dress producer Half Yard Productions, as well as Karga Seven Pictures, Left/Right, Dorsey Pictures, Cove Pictures and 44 Blue Productions. Combined, the companies produce more than 215 series and 1,000 hours a year which span across unscripted and scripted productions. The banner also represents global TV and film distributors Red Arrow Studios International and Gravitas Ventures, which hold a combined catalog of 4,000-plus titles.
The exploration of a potential sale, however, would exclude international digital studio Studio71 and the German content production business RedSeven Entertainment.
Based in six countries, Studio71 boasts more than 1,400+ web channels and 10 billion monthly video views. The Munich- and Cologne-based RedSeven, meanwhile, produces entertainment formats in such genres as comedy, clip show, “docutainment”, magazine, show and corporate media.
The strategic analysis comes as a number of senior executives have left the Munich-headquartered business over the past year. In February, Red Arrow Studios chairman and CEO Jan Frouman stepped down from his position after 15 years with parent company ProSiebenSat.1. He was replaced by James Baker. Meanwhile, Red Arrow Studios chief creative officer Michael Schmidt left the company when his management contract concluded at the end of June, and October saw the departure of Henrik Pabst as president of sales arm Red Arrow Studios International after being promoted to the newly created role of chief commercial officer at ProSiebenSat.1′s entertainment segment.