Red Arrow Entertainment Group has bought a majority holding in American entertainment firm Half Yard Productions. Red Arrow is the production and distribution unit of German company ProSiebenSat.1, according to Variety.
The exact value of the stake buy was not disclosed, but according to industry sources, the stake is worth over $40 million. Under the terms of the said deal, Half Yard founders Sean Gallagher and Abby Greensfelder will still be the co-Chief Executive Officers (CEOs) of the US firm, the report detailed.
The transaction is an example of big media companies in Europe and the US acquiring small and medium-sized production firms in the unscripted arena. This strategy is designed to beef up content creation and potentially reach new international markets, the report explained.
According to Red Arrow group managing director Jan Frouman, they chose Half Yard because of its founders' strong reputation in successful development of shows and commitment in the unscripted sector. In addition, the deal will give them access to ProSieben's resources which indie firms would not have, the report stated.
The stake sale was handled by investment bank About Corporate Finance, Variety reported.
Join the Conversation