RTL Group to acquire majority in StyleHaul – the largest fashion, beauty and women’s lifestyle network in online video

03 November 2014, Luxembourg / Los Angeles

RTL Group, the leading European entertainment network, today announced that it will acquire a controlling stake in StyleHaul for US-$107 million (around €85 million1), valuing the company at US-$151.4 million (around €121 million1). In addition, the parties have agreed to earn-out mechanisms that might increase the initial consideration, subject to the future performance of the business. RTL Group will also invest US-$20 million into StyleHaul in order to fund the company’s growth plan.

This transaction, which is expected to close by the end of November 2014, will increase RTL Group’s shareholding from 22.3 per cent to 93.6 per cent (on a fully diluted basis). Under the terms of the deal, RTL Group has the opportunity to acquire the remaining equity, owned by StyleHaul’s management and employees.

With this agreement, RTL Group further accelerates its rapidly growing presence in the online video space and its position in North America – the largest and most innovative media market worldwide. For the full year 2014, RTL Group expects to more than double its online video views to around 40 billion.

Joint statement by Anke Schäferkordt and Guillaume de Posch, Co-CEOs of RTL Group: “The acquisition of StyleHaul is another major strategic step in developing RTL Group into a global powerhouse in the rapidly growing market for online video. StyleHaul has a first-class management team that built up the only multi-channel network of scale with a clear focus on the fashion and beauty segment, and has a highly engaged audience – a very compelling proposition for major brand advertisers. StyleHaul is an excellent fit with our digital portfolio, complementing our recent, technology-focused acquisitions BroadbandTV and SpotXchange. With its strong advertising sales team, impressive track record in producing web content and the synergy potential with RTL Group’s broadcasters and producers, StyleHaul has the ideal foundations for continued strong growth.”

Stephanie Horbaczewski, Founder and CEO of StyleHaul, says: “For the past two years the partnership between StyleHaul and RTL Group has played an integral role in our success and growth. We are thrilled to be deepening that relationship and play a significant role in their emergence as a leader in the digital landscape. We are very thankful for all the support we received from my co-founders Allen and Aaron DeBevoise and our other investors RezVen and Bertelsmann Digital Media Investments (BDMI). This opportunity allows the unwavering passion and dedication of the StyleHaul team and ground-breaking community of influencers to accelerate all aspects of our business and we are very excited about what we will accomplish together with RTL Group.”

In 2013, RTL Group made initial investments in StyleHaul resulting in a current 22.3 per cent shareholding in the company (on a fully diluted basis), following a funding round led by Bertelsmann’s digital investment fund BDMI. Since then, StyleHaul has worked closely with RTL Group’s content production arm, FremantleMedia, whose North-American digital studio, Tiny Riot, produces exclusive premium content for StyleHaul, including the talk show The Crew. With more than 4.5 million views to date, The Crew is currently the most-watched original series on StyleHaul.

StyleHaul was founded in 2011 by Stephanie Horbaczewski, a former Marketing Director at Saks Fifth Avenue, together with Allen and Aaron DeBevoise, the team that founded Machinima. With more than 900 million video views per month, StyleHaul is the leading multi-channel network on Youtube for fashion and beauty and a pioneer in branded content. Revenues are expected to triple in 2014 compared to the previous year.



For further information please contact:

Communications & Investor Relations

Oliver Fahlbusch
Executive Vice President
Communications & Investor Relations
RTL Group
T.: +352 / 24 86 5200

Communications & Investor Relations

Irina Mettner-Isfort
Senior Director
Media & Investor Relations
T.: +49 221 456-56410
E: irina.mettner.isfort@rtlgroup.com

About RTL Group
RTL Group is the leading European entertainment network, with interests in 53 television channels and 28 radio stations and content production throughout the world. The television portfolio of Europe’s largest broadcaster includes RTL Television in Germany, M6 in France, the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia, Hungary and Antena 3 in Spain. The Group also operates the joint venture channels RTL CBS Entertainment HD and RTL CBS Extreme HD in Southeast Asia. RTL Group’s families of TV channels are either the number one or number two in eight European countries. The Group’s flagship radio station is RTL in France, and it also owns or has interests in other stations in France, Germany, Belgium, the Netherlands, Spain and Luxembourg. RTL Group’s content production arm, FremantleMedia, is one of the largest international creators, producers and distributors of multi-genre content outside the US. With operations in 22 countries, FremantleMedia’s comprehensive global network is responsible for 8,500 hours of programming a year and distributes over 20,000 hours of content worldwide. Combining the catch-up TV services of its broadcasters, the multi-channel network BroadbandTV and FremantleMedia’s more than 160 Youtube channels, RTL Group has become the leading European media company in online video. For more information, please visit RTLGroup.com and follow RTL Group on Twitter @rtlgroup.

 

About StyleHaul
StyleHaul is a leading multi-platform marketing solution for global fashion and beauty brands with scale. StyleHaul, which is the largest fashion and beauty network on Youtube, helps to curate style-centric programming designed for the 18 to 34 year-old female demographic and content across all of the social platforms. The network is home to more than 4,900 Youtube content creators and curators, across more than 62 countries and 199 million network subscribers. StyleHaul has more than 60 million monthly unique visitors and is leading the next generation of fashion-forward influencers, who come to not only consume, but also to create, share and engage with their communities online. StyleHaul’s headquarters are in Los Angeles, with additional offices in New York, Chicago and London. StyleHaul has launched successful original content programming, as result of a multi-year deal with FremantleMedia, including the popular YouTube series The Crew. StyleHaul is also the digital home of Lisa Kudrow and the Showtime Network’s Web Therapy. You can find us online at Stylehaul.com, Youtube.com/StyleHaul and Facebook.com/StyleHaul. Connect with us on Instagram and Twitter by following @StyleHaul.

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