In addition, both groups have also struck a long-term licensing deal, allowing Discovery Germany to access Leonine’s library of scripted content. The acquisition is subject to regulatory approvals.
Discovery Germany plans on using the deal to diversify its offering and pursue new target audience groups by integrating Tele 5 into its German free-to-air portfolio, which includes DMAX, TLC, Eurosport and HGTV.
Meanwhile, with the sale of Tele 5 and the licensing deal, Leonine is strengthening its licensing business and focusing on key pillars of production, distribution and licensing. KKR-backed major Leonine was formed in 2019 through the merger of Tele München Group, Universum Film, i&u TV, and Wiedemann & Berg Film.
Commenting on the acquisition, Susanne Aigner, managing director of Discovery Germany, said Tele 5’s films and series complement Discovery’s multi-platform offer of factual entertainment and sports content with a coveted scripted component.
“This enables us to tap new target audience groups and expand our marketing potential with the reach of Tele 5. In addition, the content agreement concluded guarantees long-term access to the fiction library of Leonine. This expansion of our portfolio represents an important step in the continuous development of Discovery Germany,” said Aigner.
Markus Frerker, COO of Leonine and responsible for the broadcasting business, added: “Our remaining portfolio in the broadcasting sector is geared to enabling further growth in Leonine’s core business areas while displaying a strong performance, and as such, the three Leonine SVOD channels — Filmtastic, Home of Horror and Arthouse CNMA — as well as our minority stake in RTLZWEI are and will remain a central part of our corporate strategy.”