FRANKFURT (Reuters) - Red Arrow Entertainment Group, part of Germany’s ProSiebenSat 1 Media (PSMGn.DE), has acquired a majority stake in U.S. film distributor Gravitas Ventures, the Munich-based broadcaster said on Wednesday.
The deal comes as ProSieben battles weak ad revenues in its home market and seeks to bolster the content that it offers via its free-to-air channels and digital platform.
“Partnering together, we will have tremendous capabilities to package and sell films and TV to the growing list of buyers worldwide,” Jan Frouman, chairman and chief executive of Red Arrow said in a statement.
Terms were not disclosed for the deal to buy into Gravitas, described as one of the largest all-rights film distributors in the world with a focus on independently produced films and documentaries for digital, streaming and “over-the-top” internet delivery platforms.
It comes just ahead of ProSieben’s quarterly results.
Analysts expect the company, which has lowered its outlook three times this year for TV advertising in Germany, to report a 3 percent rise in revenues and a slight decline in core revenues.
Reporting by Douglas BusvineEditing by Emma Thomasson, Greg Mahlich