Anthem Sports and Entertainment, a multi-platform media company, has acquired content distributor Gravitas Ventures from Red Arrow Studios.
Anthem purchased the distributor for $73 million in cash and an additional common stock consideration component, according to the companies.
Gravitas founder and CEO Nolan Gallagher, president Michael Murphy, EVP and general counsel Brendan Gallagher, and CFO Brian Kenyon join the Anthem executive team. Additionally, the entire Gravitas Ventures organization will remain intact.
Gravitas Ventures joins Anthem’s roster of properties that includes AXS TV, HDNET Movies, IMPACT Wrestling, Invicta Fighting Championships, Fight Network, Game+ and GameTV. The purchase gives Anthem more than 8,000 hours of sports and entertainment content in its library to complement its seven consumer-facing streaming channel brands, according to a press release.
Cleveland-based Gravitas Ventures has been part of Red Arrow Studios since November 2017, and typically releases more than 300 films and documentaries per year. The most recent high-profile films in the portfolio include the 2020 feature The Secret: Dare to Dream, starring Katie Holmes, and the 2021 film Queen Bees, starring Ellen Burstyn and James Caan.
The deal gives Anthem’s properties access to Gravitas Ventures titles and opens up new areas of growth and revenue for Anthem’s existing content library, “allowing Anthem to utilize Gravitas’ rich partnerships with top digital platforms,”according to the release. Upon completion of the transaction, Anthem will add more than 200 customers to its ranks, while unlocking additional promotion opportunities for its various business units and enabling Gravitas to invest further in content opportunities, new themed channels and to enter the television distribution market.
The deal will allow Gravitas “to harness the full power of the library leveraging Anthem’s expertise in launching highly-successful global FAST digital channels to create all-new themed channels specifically based around their unique content offerings,” according to the press release.
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“This is a significant step forward for Anthem in its mission to build a next-generation media company that is primed for the digital future, keeping Anthem ahead of the curve with the current trajectory of the fast-paced streaming-first entertainment ecosystem,” Leonard Asper, founder and CEO of Anthem, said in a statement. “Gravitas is a world leader in film and documentary distribution and provides Anthem with a major presence across the top digital platforms. We are happy to welcome Nolan, Michael, Brendan, Brian and the Gravitas team on board, and to broaden our shareholder base to include Gravitas Ventures’ management and Red Arrow Studios. We are excited to build upon the incredible success that they have already achieved.”
“Anthem perfectly complements Gravitas Ventures’ mindset and mission, presenting several major platforms where our films can thrive while opening up dynamic new areas and opportunities that will be vital in helping our company grow,” Nolan Gallagher, founder of Gravitas, said in a statement. “They have had tremendous success with all of their acquired properties, taking a hands-on approach that shows a great understanding for their unique products and what it takes to keep them on top in this highly competitive industry. We feel confident being a part of a talented Anthem team that is more than equipped to lead the charge for our filmmakers on this journey, and we could not be more excited to begin this new era in the legacy of Gravitas Ventures.”