All3Media is leading the pack in its pursuit of Red Arrow Studios, with the sales process for ProSiebenSat.1’s production arm now entering the final stages.
TBI understands that All3, which is backed by Liberty Global and Discovery Communications, is the leading contender for Red Arrow, which was put up for sale by ProSieben during the summer.
Around six companies are believed to have looked at the German media outfit, which houses the likes of Deep State producer Endor Productions, The Circus firm Left/Right and Old People’s Home For Four-Year-Olds’ CPL Productions, but that number has fallen as the sales process has hotted up.
Sources tell TBI that All3 is now the main suitor, with ProSieben keen to have the sales process wrapped up before Christmas. Some have suggested a deal could be completed in as little as two weeks.
However, while All3 is among the last standing in the battle to acquire Red Arrow Studios – which is also understood to have attracted interest from Sony – there remains doubt whether a deal will progress. Sources have suggested to TBI that the likelihood of an All3 deal stands at around 65%, with the company potentially being taken off the sales block if a deal is not struck with the UK-based operator.
Red Arrow Studios includes 20 production companies including 11 in the US, such as 44 Blue Productions, Kinetic Content and Dorsey Pictures, as well as other businesses in Denmark, Israel and the UK.
However, the outfit is set to be sold without The Taste prodco Redseven Entertainment and multichannel network Studio71, which ProSieben will retain to fuel its domestic outlets in Germany.
A deal with All3 would provide clear synergies for the UK-based production outfit. One of its owners, Discovery Communications, has been a regular customer of Red Arrow, ordering shows including Twisted Sisters, The Zoo: San Diego and Say Yes To The Dress America from prodcos under its umbrella including 44 Blue, Left/Right, Half Yard Productions and Karga Seven Pictures.
Last month, Discovery commissioned Red Arrow’s Kinetic Content to produce Man vs. Bear, an unscripted competition series pitting man against grizzly bear.
There had been ongoing speculation for more than a year that ProSieben was looking to sell Red Arrow prior to confirmation from the German firm earlier this year. At that time, ProSieben told TBI that the business had initiated a “strategic review” of the production division, and that it was evaluating a number of scenarios that could see it looking for partners – including a network partner – or a complete sale.
Any sale would almost certainly impact distribution arm Red Arrow Studios International, which relies on a pipeline of content from the business’s numerous production companies.
Red Arrow Studios and All3 declined to comment.