Two independent content distributors, FilmRise and Shout! Studios, are combining forces to become Radial Entertainment under Oaktree Capital Management.
LA-based private equity group Oaktree on Tuesday announced the acquisition of FilmRise, an independent streaming content distributor – and the merger of it with Oaktree’s existing portfolio company Shout!, which is an indie film and TV distributor.
Per the release, the combined company of Radial will become a premier global content distribution platform, boasting one of the largest independent catalogs in the industry with a library of 70,000 movies and TV episodes.
Current CEO and Co-founder of Shout! Garson Foos will serve as CEO of Radial while FilmRise CEO and Co-Founder Danny Fischer will become executive chairman of the combined company.
By bringing the companies together Oaktree intends to deliver scale needed to compete in a crowded streaming market by merging each company’s “unique and complementary capabilities, assets and expertise that interlock to create a complete, end-to-end production, distribution and streaming business.”
The press release described it as “a merger of strong industrial logic.”
On the FilmRise side, Oaktree called out the content distributor’s distinct monetization capabilities that span paid, hybrid and free ad-supported streaming TV (FAST) tiers. It also zeroed in on FilmRise’s catalog of TV and non-scripted content, citing strength particularly in true crime, reality, classics, medical, food and UK genres.
That pairs nicely with Shout!, which has a library that mainly consists of scripted films – diversifying the combined company’s genres across cult-classic, animation, action, western and horror categories. Oaktree also noted Shout!’s expertise across streaming, TVOD, theatrical and physical channels that complement FilmRise’s streaming prowess.
FilmRise content is distributed on dozens of streaming platforms – including most recent distribution of FAST channels on TCL smart TVs - and has over 400 syndicated FAST channels worldwide.
Some of its TV series include Gordan Ramsay’s Hell’s Kitchen and Kitchen Nightmares and true crime series Forensic Files and Unsolved Mysteries.
Per a May 2024 State of FAST report by Gavin Bridge, FilmRise accounted for three of the six-most distributed FAST channels in the US including Forensic Files, Unsolved Mysteries and Canadian drama Heartland. In 2023 it acquired over 1,000 hours of BuzzFeed Studios content including the popular “Hot Ones” series, originally launched on YouTube that features host Sean Evans interviewing celebrities as they eat increasingly spicy hot wings.
Together, Oaktree is looking to create “the independent distributor of choice” to better serve content owners and platforms.
"Oaktree is excited to bring together two incredible Film & TV content distribution companies in FilmRise and Shout!. We believe combining these companies under the Radial umbrella creates a world-class Film & TV media business,” said Jared Frandle, managing director for Oaktree’s Special Situations strategy, in a statement. “It's an extraordinary combination that we believe brings the unique scale needed to compete and win in the rapidly evolving landscape of digital entertainment and streaming media.”
Combining for scale, more M&A on the horizon
And again, a key aim of the merger is to create more scale in the fragmented streaming, TV and content ecosystem, as illustrated by Foos comment in the announcement.
"We have long admired the FilmRise business and its executives, and have held a steadfast belief that a strategic transaction between FilmRise and Shout! would create an entertainment business of exciting scale,” Foos commented. “This is a highly additive merger between two very complementary organizations, and we have strong conviction in the incremental value that Radial will bring to our partners and dedicated consumer fan base. We will ensure that the spirit and soul of Shout! will flourish in this new organization and are thrilled to collaborate with the FilmRise team in taking the combined business to the next level."
Shout! recently expanded its content portfolio in April when it acquired Gravitas Ventures from Anthem Sports & Entertainment. Through that acquisition the company gained access to over 3,300 scripted, non-scripted and sports-related films, documentaries and TV shows.
And M&A isn’t likely over yet. Oaktree in the release emphasized that since it’s original investment in Shout! in 2023 it’s been actively supporting the company’s strategic roadmap to grow its content portfolio by scooping up entertainment companies and content libraries.
That support for the content investment strategy continues through M&A, content partnerships and the expansion of streaming channels – which FilmRise now also brings to the mix.
Work under Radial will continue efforts to expand the library and pursue M&A, executives noted.
“Based on our extensive work in the space, we continue to seek opportunities to invest and grow our catalog of Film & TV titles,” Oaktree’s Frandle commented. “To that end, Oaktree is committed to working with Radial's best-in-class management team to drive significant organic and M&A-driven growth going forward as we build Radial into a premium brand name in the media & entertainment space."
Article updated to correct spelling of Oaktree Capital in headline.