Exclusive: All3Media’s deal for Red Arrow Studios back on

Deep State

All3Media’s pursuit to acquire Red Arrow Studios is understood to be back on course after ProSiebenSat.1 paused the sales process of its global production and distribution division late last year.

The German company triggered a strategic review of Red Arrow in September, prompting a number of companies including Sony Pictures Television, AMC and All3 to take a look at acquiring the Say Yes To The Dress producer, with private equity firms also linked.

All3 and AMC emerged as leading contenders but plans to have the sales process wrapped up before Christmas stalled, with the company’s valuation of around €325m ($390m) deemed by some to be too steep.

Max Conze

ProSieben then formally postponed the sales process in December, announcing that it was considering its options. That came a month after the German broadcast giant revealed that Red Arrow’s revenues had soared by almost a quarter over the previous three months, helping to offset a fall in advertising at the parent company.

However, TBI understands All3’s bid for Red Arrow – which includes Deep State producer Endor Productions, The Circus firm Left/Right and Old People’s Home For Four-Year-Olds’ CPL Productions – is now back on track, although sources have said a deal is not certain.

All3, the UK-based producer and distributor backed by Discovery and Liberty Global, has led the pack in its pursuit of Red Arrow after the division was put on the block by owner ProSieben, which is headed up by CEO Max Conze. Red Arrow is headed by president and co-CEO James Baker.

Around 20 of Red Arrow’s production companies are set to be included in a potential deal, including 11 in the US, such as 44 Blue Productions, Kinetic Content and Dorsey Pictures, along with the company’s other businesses in Denmark, Israel and the UK.

The Taste prodco Redseven Entertainment and multichannel network Studio71 are set to be retained by ProSieben, which it will use to fuel its domestic outlets.

Red Arrow and ProSieben declined to comment.