Discovery and German mediaco Leonine have agreed upon a deal that will see the global company acquire free-to-air, general entertainment channel Tele 5 and add it to the Discovery Germany roster.
In addition to the acquisition, both parties have also set a deal for Discovery Germany to access Leonine’s licensing catalog of fictional content.
The acquisition of Tele 5 will serve to diversify Discovery’s offering in the region. The channel, which draws on mostly scripted content, will join the Discovery Germany portfolio, consisting of DMAX, TLC, Eurosport and HGTV.
“I am very pleased with the expansion of our portfolio into another established brand as well as the long-term content partnership with Leonine,” said Susanne Aigner, managing director of Discovery Germany, in a statement. “Tele 5, with its films and series, complements our multi-platform offer of factual entertainment and sports content with a new fictional component. This enables us to tap new target audience groups and expand our marketing potential with the reach of Tele 5.
‘In addition, the content agreement concluded guarantees long-term access to the fiction library of Leonine,” she added. “This expansion of our portfolio represents an important step in the continuous development of Discovery Germany.”
“Our remaining portfolio in the broadcasting sector is geared to enabling further growth in Leonine’s core business areas while displaying a strong performance, and as such, the three Leonine SVOD channels, Filmtastic, Home of Horror and Arthouse CNMA, as well as our minority stake in RTLZWEI are and will remain a central part of our corporate strategy,” added Markus Frerker, COO of Leonine.
Coupled with its strategic move into the sports broadcasting arena over the past several years, the purchase of a general entertainment channel by Discovery signals more of an effort to diversify its international content offering. Leonine’s sale of the asset and striking of a program supply deal, meanwhile, point towards a strategic aim to spur growth in its three main business segments: production, distribution and licensing.
The acquisition is subject to regulatory approvals.
The news follows last week’s announcement that Paris-headquartered Mediawan is acquiring a minority stake in Leonine, as well as France’s Lagardère Studios and Spain’s Good Mood to form a pan-European production outfit.