Studio71, a US-based online media subsidiary of broadcaster ProsiebenSat.1, received €53m ($56m) in funding on Thursday from broadcasting companies TF1 Group and Mediaset.
As part of the transaction, Studio71 will receive a strategic minority stake in Finder Studios, a multi-channel network owned by TF1.
The deal valued Studio71 at approximately $425m and came a day after the company announced a strategic partnership with social commerce tools developer MagicLinks. The agreement will enable Studio71’s users to easily monetise their content.
Studio71 operates a multi-channel network that produces content for platforms such as video streaming service YouTube, ephemeral photo sharing platform Snapchat, microblogging platform Twitter, photo sharing service Instagram and social media site Facebook.
The company’s users include a large array of popular online creators as well as actor Dwayne Johnson. It has also licensed content from TV broadcasters ZDF and Canal Plus, media company Liberty Global and other partners.
ProsiebenSat.1 retains a 70% stake in Studio71 following the investment, which will be used to add additional premium content and intellectual property to its output, and to expand into more territories. Mediaset will assist with its entry into the Italian market.
Reza Izad, chief executive of Studio71, said: “We strive to partner with other forward-thinking media companies to create and distribute the world’s best content.
“Through these partnerships with TF1 and Mediaset, we are expanding the Studio71 brand into new markets, offering consumers the best in TV and digital where they want it and providing advertisers access to highly engaged audiences across all digital and social media touchpoints.
“We are eager to replicate this model around the world, further bolstering our strong foothold in the US and Europe.”